Business
Jack Henry & Associates, Inc. Reports First Quarter Fiscal 2020 Results
MONETT, Mo., Nov. 4, 2019 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing
About this update from Jack Henry & Associates, Inc.
[{"type":"text","content":"MONETT, Mo., Nov. 4, 2019 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, today announced results for the first quarter of fiscal 2020.\nGAAP Results for the Quarter\nRevenue for the quarter ended September 30, 2019 increased to $438.0 million, a 12% improvement over the first quarter of fiscal 2019. Operating income increased 14% to $118.2 million and net income increased 7% to $89.4 million, or $1.16 per diluted share, compared to the first quarter of fiscal 2019. The increase in operating income was driven by organic growth in both our services and support and processing product lines and higher deconversion fees quarter over quarter. The increase in net income is primarily attributable to the growth in our product lines and higher deconversion fees discussed above, partially offset by the increase in effective tax rate compared to the prior year quarter.\nNon-GAAP Results for the Quarter\nOn an adjusted basis for the quarter ended September 30, 2019, revenue increased 9% compared to the prior year quarter to $420.7 million. Operating income increased 9% to $104.5 million (see Non-GAAP Impact of Deconversion Fees and Acquisitions on page 3).\nAccording to David Foss, President and CEO, \"We are very pleased to report another record quarter of revenue, operating income and net income. Our sales teams again had a very strong quarter and demand for Jack Henry technology solutions continues to be high. We recently hosted our two large annual client conferences and I was humbled once again by the high levels of customer satisfaction and engagement I witnessed at those events. I would like to thank all of our associates for their continued commitment to our customers and their ongoing success.\"\nOperating Results\nRevenue, operating expenses, operating income, and net income for the three months ended September 30, 2019, as compared to the three months ended September 30, 2018, were as follows:\n \nThe increased revenue in the services and support line for the first quarter of fiscal 2020 was primarily due to organic growth in software usage and subscription fees within 'in-house support' revenue and data processing and hosting fees, which fall within our 'outsourcing and cloud' revenue stream...