Acquisitive US financial technology house Jack Henry & Associates is reporting a 21% increase in revenue and 22% growth in gross profit and net income for the second quarter ending 31 December 2004, compared with the year earlier period.
The firm, which has made six acquisitions in the year to date, reports a 17% rise in first half fiscal 2005 revenue and an increase of 21% in gross profit and net income over H1 2004.
The only cloud comes from an increase in resale costs on third party software - particularly in the core credit union segment - cutting margins on license revenue from 98% to 92% for the quarter and from 95% to 92% year-to-date.
The company's share price has risen above the $20 mark in recent days as analysts have talked up the stock, forecasting EPS growth of 20% for the current year. The market generally has been impressed by the company's earnings growth to date and healthy cash flows and the share price is tipped to reach $25 by year end. More acquisitions and improved market share are anticipated.