Jack Henry Q3 net profit slips

Jack Henry Q3 net profit slips

US Fintech vendor Jack Henry & Associates says third quarter revenues and profits were down on the same period the previous year, as "headwinds" on discretionary spending hit hardware and license fees.

Revenue for the quarter was $180.4 million, down four per cent from $187.5 million. Gross profit slipped seven per cent to $70.2 million, with net profit also falling by seven per cent to $24.8 million. Earnings per share were flat at $0.30.

For the nine months, revenue was flat at $553.7 million, with net profit down five per cent at $75.3 million.

License revenue for Q3 was down 31%, to $12.7 million, on the same period the previous year, with hardware revenue down 22% to $15.8 million. However, revenue from support and services was up two per cent to $151.8 million.

Jack Prim, CEO, Jack Henry, says cost cutting measures implemented at the end of the fourth quarter have helped buffer the firm but warns that "additional measures" will now be put in place.

"While the near term economic outlook remains cloudy we will continue to manage the business in what we believe to be the best long term interests of stockholders, customers and employees," says Prim.

View Jack Henry data here.

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