Profits falter at start of Jack Henry's fiscal year

RELATED

Executive Insider: David Foss

Monett-based financial software firm Jack Henry & Associates Inc. (Nasdaq: JKHY) posted a dip in profits to start its fiscal year.

During the company's fiscal third quarter, officials reported net income of $101.7 million, a 4.6% decrease from $106.5 million a year earlier, according to a news release. Diluted share earnings dropped to $1.39 from $1.46 per share.

However, revenue during the quarter rose 8% to $571.4 million.

"We are very pleased to report overall strong financial performance for the first quarter of our new fiscal year," said David Foss, board chair and CEO, in the release, without specifically addressing the profit decrease. "Our sales pipeline is the highest it’s ever been, and we recently hosted a record number of clients and prospects at our annual Jack Henry Connect conference in Indianapolis."

Mimi Carsley, chief financial officer, cited a one-time voluntary employee departure incentive payment expense for the drop in profits.

As of Sept. 30, Jack Henry's assets were $2.7 billion, according to the release. The company has roughly 7,500 financial industry clients.

JKHY shares were trading at $148.83 as of 9:35 a.m., compared with a 52-week range of $136.57 to $192.35 per share.