A boost in payments processing and demand for technology outsourcing from banks helped Jack Henry & Associates Inc. raise its fiscal second-quarter revenue 15% from a year earlier to $242.6 million.
The Monett, Mo., vendor of financial software and hardware said Tuesday that banks increased their spending on technology during the quarter, which ended Dec. 31, and its backlog of future business also increased. Its net income rose 20% to $36 million.
"We are seeing what appears to be a gradual improvement in spending from our financial institution customers as the economy continues to slowly improve," Jack Prim, chief executive of Jack Henry, said in a press release.
The company's operating expenses rose during the quarter, mostly due to acquisitions it completed in fiscal 2010. It still managed to post earnings that beat analysts' estimates.
Jack Henry's diluted earnings per share were 42 cents, up from 35 cents a year earlier. Analysts polled by Thomson Financial were expecting earnings of 37 cents.
