Fiserv, Jack Henry Report Strong Start to 2013
The year has been good so far for two of the major companies in the credit union technology space – Fiserv Inc. and Jack Henry & Associates.
Fiserv this week reported adjusted revenue of $1.08 billion in the first quarter ended March 30, a 6% increase over the first quarter of 2012.
Adjusted earnings per share from continuing operations in the first quarter increased 13% to $1.33 compared with $1.18 from the year-ago quarter, the company said. Fiserv earlier this year reported 27 consecutive years of double-digit EPS growth.
Fiserv acquired Open Solutions and its 3,300 customers in January and included those results from the date of acquisition, the company said.
“Our first quarter results are in line with expectations, and we are on track to achieve our targeted results for the year,” said President/CEO Jeffery Yabuki in a statement. “We are pleased with our progress on the integration of Open Solutions and the positive client reaction to our broad array of leading solutions.”
The Open Solutions purchase added 800 core processing clients, about half of them credit unions and most using the DNA platform. Five new DNA clients were signed in the quarter, the most for one quarter since 2011, Fiserv said.
Fiserv said it also signed 90 Mobiliti clients in the quarter and has added nearly 1,500 mobile banking clients to date. Also signed were 89 Popmoney person-to-person payments clients, bringing that total to more than 1,900 financial institutions.
The company said it signed 78 bill pay clients and 36 debit processing clients in the quarter. More than 2,400 credit unions run on Fiserv account processing platforms.
Jack Henry & Associates, meanwhile, concluded the third quarter of its fiscal year on March 30 and reported this week a 10% increase in revenue to $281.5 million, an increase of 11% in gross profit to $114.6 million and a 25% increase in net income to $46 million over the third quarter of fiscal 2012.
For the first nine months of fiscal 2013, revenue increased 9%, with an increase of 12% in gross profit, and an increase of 16% in net income compared to last year, the Monett, Mo., company said.
Jack Henry & Associates said it now serves more than 11,600 customers through its Jack Henry Banking, Symitar and ProfitStars operations. Symitar provides core processing and other solutions to more than 750 credit unions.
The credit union systems and services segment revenue increased 11% to $68.6 million with a gross margin of 42% for the third quarter of 2013 from $61.6 million and a gross margin of 40% in the same period a year ago, the company said.
"The results this quarter are much like those of the last several quarters with solid performances across all areas of the company. Revenue growth was very strong with double digit gains in license fees, implementation and payments,” said CEO Jack Prim.