Executives at Jack Henry & Associates Inc. said they are not concerned about a pending merger between two rivals.
"I think we competed pretty well against larger competitors in the business for quite some time and would expect that to continue to be the case," Jack F. Prim, the Monett, Mo., technology vendor's chief executive, said Wednesday in a conference call with analysts.
Size is not necessarily an advantage for vendors serving community banks and credit unions, Jack Henry's main market, Prim said.
Metavante Technologies Inc. agreed in April to sell itself for $2.94 billion in stock to Fidelity National Information Services Inc. The deal is expected to close next quarter.
Jack Henry said net income in its fiscal third quarter, which ended March 31, fell 7% from a year earlier, to $24.8 million, or 30 cents a share, which missed the average analyst estimate by a penny. Revenue fell 4%, to $180.4 million.
Revenue from software licenses was hit especially hard, as customers deferred purchases in response to a slumping economy and higher assessments for government deposit insurance programs, executives said.
"We're still facing headwinds. We'll implement further cost-control and cost-reduction actions to minimize the impact of the slower spending environment," Prim said.
"We will appropriately balance the needs of the employees, customers and stockholders," he said.