Jack Henry posts 6% profit gain

Citing strong sales, Jack Henry & Associates Inc. (Nasdaq: JKHY) officials reported 6 percent net income growth to $53.9 million in its fiscal 2016 third quarter.

The Monett financial industry software firm increased diluted share earnings by 5 cents to 68 cents per share, according to a news release.

"We are pleased to deliver another quarter with record revenue and earnings,” CEO Jack Prim said in the release. “Sales performances across our brands remained strong in the quarter as we begin to book next year's business.”

Third-quarter financial notes:
    •    Jack Henry’s revenue rose 8 percent to $333.2 million. Support and service revenue made up 96 percent of the total at $319.6 million.
    •    Sales costs increased 9 percent to $194.3 million.
    •    Gross profits were $138.9 million, a 5 percent bump.

Jack Henry, which serves more than 10,600 customers, creates technology and payment processing products for the financial services industry.

During the quarter, Jack Henry reached an agreement to sell its Goldleaf Enterprise Payments Inc. software division to Antelope Acquisition Co., an affiliate of Boston-based Battery Ventures LP, for undisclosed terms. The deal is expected to close by May 31.

JKHY shares were trading at $83.09 as of 10:06 a.m., compared to a 52-week range of $60.10 to $86.23.