Jack Henry & Associates reported a 29% surge in revenues for its fiscal first quarter, boosting net income by 21%.
The provider of back-office services for credit unions and banks reported total first quarter revenues of $234.8 million, up from $182.3 million for the first quarter last year. First quarter net was $31.8 million for 2010, up from $26.3 million for 2009.
First quarter results were fueled by last year’s acquisition of iPay Technologies.
The company reported growth in all components of support and service revenue in the first quarter, resulting in a 35% increase in support and service revenue. Hardware sales in the first quarter declined 2%. License revenue also declined 17%.
“We are pleased with the results in the quarter with solid total and organic revenue growth, which resulted in record revenue, operating and net income for the quarter,” said Jack Prim, president and CEO of Jack Henry. “We also continue to see increases in recurring revenue, which was at 81% for the quarter and another company record. This was accomplished in spite of the fact that the economic environment for our customers remains essentially unchanged. We expect to see gradual improvement in financial institution spending as the economy continues to slowly improve.”