News

Jack Henry's earnings up in 1st fiscal quarter of '05

October 19, 2004

MONETT, Mo. - Jack Henry & Associates, Inc. (Nasdaq: JKHY - News), a provider of integrated data processing technology solutions for financial institutions, reported net income of $16.7 million, or 18 cents per diluted share, in the first quarter of fiscal 2005, up 20 percent compared to $13.9 million, or 15 cents per diluted share, in the same quarter a year ago.

The company reported revenue of $124.1 million, compared to $108.9 million in the same quarter a year ago.

Jack Prim, the company's CEO, said the latest quarter was the second strongest revenue quarter in its history, second only to the fourth quarter of fiscal 2004.

"The acquisitions we have announced since the beginning of the fiscal year will not only add to our suite of products and services but also continue to differentiate our core systems from that of our competitors," Prim said. "The resulting impact should be to continue driving both new core sales and sales of add-on complementary products to new and existing customers. In addition to these benefits the acquisitions have allowed us to expand our addressable market and enter new markets."

Among acquisitions announced in the quarter: software developer e-ClassicSystems and Select Payment Processing.

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Contributing to the strong quarter, said Tony Wormington, the company's president, was an increase of 51 percent in license revenue compared to last year and a 15 percent increase in  support and services revenue.

License revenue was $19.6 million, or 16 percent, of first quarter total revenue, compared to $13 million, or 12 percent, of the first quarter total revenue a year ago.

Growth of in-house support fees, outsourcing and ATM/debit card and switch fees contributed to the increase in support and service revenue which grew to $83.6 million, up from $72.5 million for the same period a year ago.

Support and service revenue remained even at 67 percent of total revenue for both years.

Hardware sales in the first quarter of fiscal 2005 decreased 11 percent to $20.9 million, or 17 percent of total revenue in the first quarter, from $23.5 million, or 22 percent of total revenue in the prior year's quarter.