|Jack Henry and Associates (JHA), based in Monett, has reported third quarter profits that included an 11 percent increase in revenue and a 10 percent increase in gross profits over the third quarter of 2010.|
A leading provider of integrated technology solutions that performs data processing for financial institutions, Jack Henry and Associates recorded total revenue for the quarter of $240.2 million, compared to $215.5 million in the same quarter a year ago. Gross profit increased to $95.3 million, compared to $86.5 million in the third quarter of the previous fiscal year.
Net income totaled $33.1 million, or 38 cents per diluted share, compared to $31.6 million, or 37 cents per diluted share, in the same quarter a year ago. For the nine months ended March 31, total revenue reached $717.6 million, up from $608.7 million in fiscal 2010.
"We are pleased to report another solid performance in our third fiscal quarter with record revenue and net income and solid organic revenue growth," said Jack Prim, chief executive officer for JHA. "Against a backdrop of ongoing improvement in the economy, we have seen increased sales activity levels and results.
"While license fees remain difficult to predict due to both the one-time nature of those sales and the increased customer preference for hosted solutions, support and services continued to show strong growth with a 15 percent increase in the quarter," Prim continued. "Our managers' focus on cost management is reflected in the increased operating income of 16 percent from the 11 percent increase in total revenue."
According to JHA President Tony Wormington, support and services revenue grew by 15 percent for the quarter and is up 21 percent for the year to date.
"The largest contributor to the growth within this line was our electronic payments revenue, which grew 35 percent compared to the prior year quarter," Wormington said. "Electronic payments revenue has increased 50 percent year to date, compared to the same period last fiscal year. Electronic payments represent 33 percent of our total revenue for the quarter.
"Another large contributor to this line is our OutLink or outsourcing services, which grew 10 percent for the quarter and 12 percent year to date," Wormington continued. "OutLink is driven by both new customers electing this type of service delivery but also due to the continued movement of our existing in-house customers electing to migrate to this model."
Cost of sales for the third quarter increased 12 percent for the three months ended March 31. Gross profit in the current year third quarter increased 10 percent to $95.3 million compared to $86.5 million last year. Gross margin was 40 percent for both periods.
Jack Henry and Associates, Inc., provides integrated computer systems and electronic payment solutions primarily for financial services organizations. JHA markets and supports its systems throughout the United States and has over 11,200 customers nationwide.