Jack Henry and Associates (JHA), the computer software company based in Monett, has remained strong in the marketplace despite the soft economy. Tony Wormington, president of JHA, provided an overview of company operations at a recent meeting of the Monett Kiwanis Club.
Wormington said the banking industry remains the base for JHA's business. JHA products and services are presently used in 1,500 banks and 700 credit unions. More than 9,800 technology-dependent businesses are served by JHA, including firms outside of the financial industry. Total revenue for the fiscal year that ended on June 30, 2009, was $746 million. Income after expenses was $103 million.
The company earns 8 percent of its total revenue from software license fees. Products produced by JHA to facilitate banking operations focus on bill paying, voice response, internal banking, treasury and commercial deposits, remote deposit capture solutions and imagery.
JHA earns 10 percent of total revenue from hardware sales. Support and services provided by staff generates 82 percent of total revenue.
Wormington said JHA competitors laid off 3 to 5 percent of their workforce due to the softer economic climate. JHA took a different approach and asked employees to volunteer for time off without pay. Through staff cooperation and top executives taking a bigger reduction than others, Wormington said the company made a 3.5 percent reduction in pay.
"It was painful, but we got through it and no one lost their job," Wormington said. "After 10 months, everyone is making full salary again."
JHA also took the position not to do away with services. Consequently, Wormington said the business pipeline has remained full, Wormington said.
The company presently has 1,140 employees in Monett. JHA has five leased locations in Springfield where 360 people work. Construction is nearly complete on a new campus in Springfield, which will be used to consolidate five offices. Wormington said with the opening of the new Springfield facility, most of Springfield area employees who presently drive to Monett will be reassigned to the new office, leaving a little over 1,000 employees in Monett.
Nationwide JHA has 4,300 employees in 48 locations. The company's next largest facilities beyond Springfield are in San Diego, Calif., where 450 people work, and Allen, Texas, where 350 are employed.
JHA has its products and services organized around three different brands:
* Jack Henry Banking, the company's original business founded in 1976, offers around 100 complementary solutions. Customers have used Jack Henry Banking's three core systems to replace every competitive alternative marketed today.
* Symitar, acquired in 2000, concentrates on the credit union market.
* ProfitStars, established in 2006, focuses on providing solutions from more than 60 products and services to a diverse customer base seeking ways to process financial transactions.
Wormington said JHA is always looking for ways to increase business. The company's philosophy has been to acquire companies that complement what JHA does. Since its founding, JHA has acquired 50 companies, including 20 in the last four years.
Kiwanis President Randy Henderson presided at the meeting. Frank Washburn was program chairman.
The Monett Kiwanis Club meets at noon on Tuesdays for a meal and a program, usually at Happy House restaurant.