Technology vendor Jack Henry & Associates Inc. on Tuesday reported fiscal fourth-quarter earnings that beat analysts' estimates and reiterated its confidence in banks' spending appetite despite recent upheaval in the financial markets.
The Monett, Mo., company, said its revenue for the quarter ending on June 30 rose 9% from a year earlier to $249.3 million, as higher sales tied to software licenses and support and service activities offset continued declines in hardware sales.
The company reported a 22% increase in net income, to $36.6 million, or 42 cents per diluted share, from $30 million, or 35 cents per diluted share, a year earlier.
Analysts predicted Jack Henry would earn 40 cents per share, according to Thomson Reuters.
Jack Henry provides core account systems, payments processing software, online banking and other technology to small and mid-size community banks and credit unions. It competes against industry giants Fidelity National Information Services Inc. and Fiserv Inc., which last month both reported increasing demand for technology by financial institutions.
"In spite of recent economic news we believe the spending environment for our customers is continuing to improve and we ended the fiscal year with strong sales performances," Jack Prim, Jack Henry's chief executive, said in a press release.
Prim also attributed the company's performance to acquisitions it completed in fiscal 2010, which has allowed the company to "deliver revenue and operating income that exceeded" the company's projections.
For fiscal 2011, Jack Henry's revenue increased 16%, to $966.9 million. Its net income rose 17%, $137.5 million, or $1.59 per diluted share, from $117.9 million, or $1.38 per diluted share.
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