Jack Henry & Associates Misses Estimates

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On May 5, 2009, Jack Henry & Associates(JKHY Quote) reported that its Q3 FY09 earnings fell 6.8%, hurt by lower revenues amid discretionary spending related to hardware and license fees. Net income declined to $24.80 million from $26.61 million in Q3 FY08. On a per share basis, earnings remained flat at $0.30 per share as a result of lower share count. The quarterly results missed the consensus estimate of $0.31 per share.

Total revenue inched down 3.8% to $180.41 million from $187.48 million a year ago due to a slowdown in growth at its electronic payments business and a slump in in-house maintenance growth due to delayed decisions for complementary products because of a drop in implementations and work orders. Bank systems and services revenue slumped 3.8% to $150.20 million, while the credit union systems and services segment revenue dipped 3.5% to $30.20 million. License revenue plunged 31.0% to $12.73 million, while hardware revenue shrunk 21.8% to $15.84 million. On the positive side, support and service revenue, contributing 84.2% of total revenue, rose 2.1% to $151.84 million, attributable to robust growth in most of its support and service components. ...