Two financial services technology companies, Fiserv Inc. and Jack Henry & Associates, reported improved revenue in the quarter that ended Dec. 31.
Fiserv, which also reported full-year earnings, said improvements in its results coincided with transformative deals such as its Dec. 3 purchase of the Atlanta online bill payment provider CheckFree Corp.
"Combining CheckFree's capabilities with … Fiserv gives us a full spectrum of solutions and a broader client base which we believe will enhance our growth, profitability, and market position over the short and long term," Jeff Yabuki, Fiserv's president and chief executive, said in a conference call with analysts Wednesday.
Fiserv's quarterly revenue rose 19%, to $1.11 billion, from the year earlier. Its net income fell almost 9%, to $96.7 million.
The Brookfield, Wis., company's full-year revenue rose 10%, to $3.92 billion, from 2006, and net income for the year dropped 2%, to $439.3 million.
Tom Hirsch, Fiserv's chief financial officer, said, "There are a lot of moving parts this quarter, due to the significant transformative actions we took in 2007."
This January, it sold most of its health business, and this month it sold its investment support services business. He described CheckFree as a "faster-growing business" than the ones Fiserv sold.
Jack Henry, a Monett, Mo., software company, reported that revenue in its fiscal second quarter, ended Dec. 31, rose 15%, to $192.2 million, from the year earlier. Net income was up 5%, to $29.2 million, it said Wednesday.
Jack Prim, the chief executive of Jack Henry, credited the improvements in a press release to "solid growth in the banking and credit union segments."
Both companies highlighted recurring revenue. Tony Wormington, Jack Henry's president, said in the release, "All components of recurring revenue … continued to grow at nice levels."
