Decreases in revenue, gross profit, income from continuing operations and net income for the third quarter of fiscal 2009 have been announced by Jack Henry and Associates Inc., headquartered in Monett.
The company reported a 4 percent decrease in revenue, 9 percent decrease in gross profit, 7 percent decrease in income from continuing operations and 7 percent decrease in net income compared to the third quarter of fiscal 2008.
Jack Prim, chief executive officer of Jack Henry, said, "We continued to see significant headwinds during the quarter on discretionary spending related to hardware and license fees. The cost controls that we implemented at the end of the fourth quarter with the full participation of our employee base helped buffer these shortfalls to some extent and allowed us to maintain strong gross and operating margins.
"We indicated last quarter that we had additional potential cost control measures available, and we are moving forward to implement some of these additional measures," Prim said. "While the near-term economic outlook remains cloudy, we will continue to manage the business in what we believe to be the best long-term interests of stockholders, customers and employees."
Company President Tony Wormington stated, "Due to the continued headwinds on license and hardware revenue, our recurring revenue represented 77 percent of total revenue for the quarter and 75 percent year to date. Support and services revenue, which includes one-time implementation fees with the recurring revenue, represented 84 percent of total revenue for the quarter and 83 percent year to date.
"However, compared to the prior year, our one-time implementation revenue decreased 18 percent for the quarter and 11 percent year-to-date, directly related to the decrease in license sales and delayed product implementations," Wormington said.
Kevin Williams, chief financial officer, said, "We continue to see strong interest from our existing in-house customers to migrate to our OutLink model, which is reflected in our outsourcing backlog. During the first nine months of the current fiscal year we have already exceeded the total number of these decisions made all of last fiscal year.
"Obviously for the long term this is very good for our company as it provides additional recurring revenue and visibility through these mult-year contract," Williams said. "However, for the short term, this shift adds additional headwind to our license and hardware revenue."
Jack Henry and Associates Inc. provides integrated computer systems and processed automatic teller machine and debit card transactions for financial institutions. The company markets and supports its systems throughout the United States, and has more than 8,800 customers nationwide.