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Thursday, Apr. 28, 2016

Jack Henry third quarter income shows increase

Thursday, May 3, 2012

Jack Henry and Associates, Inc. (JHA) recorded a 7 percent fiscal year third quarter increase in revenue.

JHA logged an 11 percent increase in net income over the third quarter of fiscal 2011. The company saw an increase of 8 percent in gross profit. For the first nine months of fiscal 2012, revenue increased 6 percent.

"We continue to have a very strong fiscal 2012 with record revenue, record gross profit and net income for the third quarter compared to any fiscal year and record all time backlog," said Tony Wormington, JHA president.

"Our support and services line of revenue continues to grow and contribute nicely, which represents 88 percent of our total revenue.," Wormington said. "Within this line we continue to see strong growth in all of our electronic payment offerings. Overall our support and services revenue grew 8 percent for the quarter compared to a year ago and has grown 6 percent year to date."

Revenue for the quarter totaled $256.3 million. Gross profit increased to $103.4 million.

For the nine months ending March 31, total revenue of $760.5 million was generated.

"We continue to see an improved spending environment," said Jack Prim, chief executive officer. "Financial institution balance sheets and fee income have been less negatively impacted than was expected a year ago. In addition to the solid financial performance in the quarter our biennial employee engagement survey showed solid gains across the board, which we believe bodes well for our Customers and our Shareholders."

License revenue for the third quarter increased by 6 percent in the third quarter. Support and service revenue increased 8 percent. Within support and service revenue, electronic payment services, which include ATM/debit/ credit card transaction processing, bill payment and remote deposit capture, had the largest growth of $8.6 million or 11 percent in the third quarter. Hardware sales in the third quarter of fiscal 2012 decreased 14 percent.

Gross margin on license revenue for the third quarter was 84 percent, down 7 percent from a year earlier. The change is a result of fluctuations in the sales mix of products delivered. Selling and marketing expenses increased 12 percent in the current year third quarter.

Operating income increased 12 percent to $56.5 million. Backlog increased 18 percent. Cash provided by operations totaled $118 million in the current year compared to $115.2 million last year.

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