Monett-based Jack Henry and Associates (JHA) closed the first quarter of its new fiscal year on Sept. 30 with a 6 percent increase in total revenue, compared to the prior fiscal year. Net income rose 15 percent compared to the prior fiscal year.
The company generated total revenue of $248.3 million, compared to $234.8 million in the same quarter a year ago. Net income in the current year was $36.5 million, or $.42 per diluted share, compared to $31.8 million a year ago.
"Our strong performance in the quarter reflects a gradually improving financial institution spending environment and continued strong focus and execution by our associates," said Jack Prim, JHA chief executive officer. "We had solid organic growth and good leverage to both operating and net income.
"As economic conditions continue to improve we are well positioned to meet our customers' needs with products and services that can help them improve efficiency and reduce costs."
Both license revenue and support and service revenue for the first quarter increased by 5 percent. Within support and service revenue, electronic payment services, which includes ATM and credit card transaction processing, had the largest percentage growth of 12 percent. Hardware revenue was 6 percent of total revenue in both periods.
Cost of sales for the first quarter increased by 4 percent. Research and development expenses decreased by 3 percent while general and administrative costs increased 3 percent. Operating income increased 10 percent.
Kevin Williams, JHA chief financial officer. said JHA has approximately $108 million in cash and the availability of the firm's entire revolver facility to fund future acquisitions or other corporate initiatives.
Based in Monett, JHA is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its solutions serve more than 11,300 customers nationwide, and are marketed and supported through four primary brands. Additional information is available at www.jackhenry.com.