Jack Henry & Associates Inc. expects its deal for Goldleaf Financial Solutions Inc. to contribute 2 to 4 cents per share to its earnings in fiscal 2010 and twice as much the next year, executives said Wednesday.
The Monett, Mo., vendor announced its deal Monday for the Norcross, Ga., payment-software company at a price of $19.2 million in cash and $42 million of assumed debt.
Jack F. Prim, the chief executive officer, told analysts on an earnings call that, despite an unusually difficult recession, Jack Henry signed "two of the largest transactions in the company's history" during its fiscal fourth quarter — with the $12.4 billion-asset Whitney Holding Corp. in New Orleans and the $5.3 billion-asset Community Bank System Inc. in DeWitt, N.Y.
In its fourth quarter, ended June 30, Jack Henry said, net income grew 12%, to $27.8 million, or 33 cents a share, compared to the year earlier; this topped analysts' average estimate of 29 cents a share. Revenue grew 2%, to $191.9 million.
For the full year net income fell 1% from the year earlier, to $103.1 million, as revenue grew less than 1%, to $745.5 million.
"We were not overly pleased with the results," said Kevin D. Williams, Jack Henry's chief financial officer. "However, we did finish the year strong, and we are very confident going into fiscal year 2010 that things are looking a little better."