Business software and service provider, Jack Henry & Associates, Inc. (JKHY), Tuesday reported an increase in second quarter profit helped by higher support and service revenues. Profit came in above estimates, while revenues missed.
For the second quarter, net income rose 7% to $29.98 million or $0.35 per share from $27.99 million or $0.33 per share in the same quarter a year ago.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter. Analysts' estimate typically excludes one-time items.
Revenue for the quarter increased 11% to $210.86 million from $190.20 million in the year-ago quarter, missing Street estimates of $213.77 million.
License revenue dropped 19% to $12.0 million, Hardware revenues dropped 28% to $14.71 million ,while support and service revenue increased 19% to $184.1 million from the year-earlier quarter.
Gross profit increased 15% to $89.1 million from $77.4 million a year ago. Gross margin increased to 42% from 41% a year ago.
Operating expenses increased 17% to $41.72 million from $35.76 million in the year-ago quarter. Operating income rose 14% to $47.4 million from $41.6 million in the same quarter last year.
For the first half of fiscal 2010, net income increased to $56.25 million or $0.66 per share from $50.49 million or $0.59 per share in the prior-year period. Total revenue increased to $393.19 million from $373.30 million in the year-ago quarter.
JKHY closed Tuesday's regular trading at $22.76, up $0.26 or 1.16%, on a volume of 0.85 million shares. In after-hours, the stock dropped $0.26 or 1.14%, to trade at $22.50.
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