Jack Henry & Associates Misses Estimates

The company reported that its earnings fell nearly 7% in its third quarter.
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On May 5, 2009,

Jack Henry & Associates

(JKHY) - Get Report

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.

During the quarter, JKHY backlog increased 11.2% to $277.00 million from $249.00 million at the end of Q3 FY08.

Recently, the company announced that Brattleboro Savings & Loan selected Jack Henry Banking as its technology partner and the SilverLake System as its technology platform. As per the agreement, the bank will implement SilverLake through JKHY's banking's outsourced offering, in addition to the initial implementation of an array of JKHY's complementary solutions.