Jack Henry Reports Sharply Higher Earnings
MONETT, Mo. – Jack Henry & Associates said yesterday strong sales for its fiscal second quarter fueled a 20% advance in net income, to $36 million for the period.
The provider of back-office services for credit unions reported a 15% rise in revenue, to $242.6 million.
For the first six months of its fiscal year, Jack Henry had a 21% increase in revenue to $477.5 million, and a 21% surge in net income to $67.8 million.
Second quarter and first half results were fueled by last year’s acquisition of iPay Technologies and its electronic payment services.
“We continue to be pleased with the results generated this fiscal year as we completed another record quarter for revenue, gross profit and net income,” said Jack Prim, CEO of the company. “The acquisitions that we completed last year continue to perform in line with our earnings expectations and contributed to our record in-house backlog at the end of the quarter. We are seeing what appears to be a gradual improvement in spending from our financial institution customers as the economy continues to slowly improve.”
Support and services revenue grew 15% for the quarter and 24% year to date, compared to last year. The largest contributor to the growth within this line was the company’s electronic payments revenue, which grew 40% compared to the prior year quarter and has increased 60% year to date compared to the first half of last fiscal year. Electronic payments represent 32% of Jack Henry’s total revenue for the quarter and year to date.
License revenue for the second quarter increased 29% to $15.5 million, or 6% of second quarter total revenue, and support and service revenue increased 15%, to $212.4 million.