Jack Henry & Associates
, a provider of integrated computer systems and processor of ATM/debit card transactions, reported a 22.3% rise in earnings for the second quarter, aided by higher revenue and margin growth in its support and service segment.
The company earned $21.6 million, or 23 cents a share, in the quarter, compared with $17.7 million, or 19 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 23 cents a share.
Second quarter revenue rose 8.4% from a year ago to $147.4 million. Analysts were expecting revenue of $149.4 million.
"We have continued to experience strong demand for all the components that make up our recurring revenue which include outsourcing, in-house maintenance and ATM/Debit card processing," the company said.
The gross profit margin improved by 410 basis points to 44.4% and operating profit margin by 250 basis points to 23.1%. The company said it continues to obtain additional gross margin leverage primarily through its outsourcing and electronic payment infrastructures due to process improvement and revised procedures.
Backlog, which is a measure of future business and revenue, stood at $213.8 million as on Dec. 31, 2005.
The company's share closed at $20.42, down 5 cents from Tuesday's close.
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