Slowdown Hurts Jack Henry

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Jack Henry & Associates, the provider of processing and ATM services to more than 1,000 credit unions, said the sluggishness in the economy plagued its financial performance, with fiscal fourth quarter earnings off 11%, to $14.1 million, or 16 cents a share, compared to $15.9 million, or 17 cents a share, for the fourth quarter last year.

Still, fourth quarter revenues braved a 34% slide in license and hardware sales to rise 3% to $109.2 million.

For the year Jack Henry reported a 2% rise in revenues to $404.6 million, but a 16% decline in net earnings to $49.4 million, or 55 cents a share.

Operating expenses for the year increased 9%, with a majority due to a 27% rise in research and development costs.

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