Jack Henry & Associates Fiscal 2011 Second Quarter Net Income Increases 20%

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MONETT, Mo. Feb. 1, 2011 Jack Henry

December 31, 2010 $242.6 million $210.9 million $102.8 million $89.1 million $36.0 million $0.42 $30.0 million $0.35

$477.5 million $393.2 million $199.9 million $163.5 million $67.8 million $0.79 $56.3 million $0.66

Jack Prim

Operating Results

Tony Wormington

$15.5 million $12.0 million $212.4 million $184.1 million $14.8 million $14.7 million

$24.9 million $23.4 million $423.0 million $340.1 million $29.6 million $29.7 million

$121.8 million December 31, 2009 $139.8 million $102.8 million $89.1 million

December 31, 2010 $277.6 million $229.7 million December 31, 2009 $199.9 million $163.5 million

December 31, 2010

Support and service gross margin remained consistent at 40% for the second quarter of fiscal 2011 and for the same period last year. Support and service gross margin for the 6 months of fiscal 2011 increased to 40% from 39% in the same period a year ago. Hardware gross margin decreased from 27% in the second quarter of fiscal 2010 to 26% in the same period in the current year, yet remained consistent at 27% for the first half of both fiscal years.

October 29, 2009 June 4, 2010 $17.0 million $14.9 million $15.8 million $12.3 million $15.0 million $14.5 million

$92.1 million $74.2 million October 1, 2009 December 31, 2010 $33.3 million $27.0 million $31.2 million $22.5 million $27.5 million $24.7 million

$55.0 million $47.4 million $36.0 million $0.42 $30.0 million $0.35

$107.8 million $89.3 million $67.8 million $0.79 $56.3 million $0.66

Kevin Williams $10.7 million $12.2 million $77.9 million $152.9 million $123.0 million

$189.0 million $171.0 million $53.6 million $39.8 million

December 31, 2010 $370.9 million $321.4 million $106.6 million $71.7 million

Condensed, Consolidated Balance Sheet, Cash Flow, and Backlog Review

$46.9 million $24.9 million December 31, 2009 June 30, 2010 $125.5 million $130.0 million

$190.0 million December 31, 2010 $819.1 million December 31, 2010 $684.8 million December 31, 2009

$85.8 million $75.9 million

	Six months ended December 31,
	2010	2009

Net income	$ 67,816	$ 56,251
Non-cash expenses	48,506	35,754
Change in receivables	81,623	87,554
Change in deferred revenue	(85,601)	(92,740)
Change in other assets and liabilities	(26,515)	(10,963)

Net cash provided by operating activities	$ 85,829	$ 75,856

$27.6 million $15.5 million $12.1 million $164.6 million $125.9 million October 2009 $25.9 million $12.9 million

$136.9 million $135.3 million $16.3 million $14.3 million $4.5 million $64.8 million $14.3 million $61.6 million $13.0 million

$342.7 million $78.7 million $264.0 million December 31, 2010 December 31, 2009 $316.3 million $76.6 million $239.7 million June 30, 2010 $328.8 million $78.2 million $250.6 million

Jack Henry

Jack Henry the United States Jack Henry www.jackhenry.com February 2nd 7:45 a.m. Central Time www.jackhenry.com

Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company’s financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company’s SEC filings that may cause actual results to differ materially from any forward-looking information.

Condensed Conso lidated Statements of Income (In Thousands, Except Per Share Data – unaudited)
	Three Months Ended			Six Months Ended
	December 31,		% Change	December 31,		% Change
	2010	2009		2010	2009

REVENUE
License	$ 15,460	$ 12,013	29%	$ 24,919	$ 23,415	6%
Support and service	212,378	184,143	15%	422,988	340,069	24%
Hardware	14,797	14,705	1%	29,550	29,708	-1%
Total	242,635	210,861	15%	477,457	393,192	21%

COST OF SALES
Cost of license	2,079	1,091	91%	3,257	2,211	47%
Cost of support and service	126,857	110,026	15%	252,663	205,836	23%
Cost of hardware	10,880	10,664	2%	21,685	21,674	0%
Total	139,816	121,781	15%	277,605	229,721	21%

GROSS PROFIT	102,819	89,080	15%	199,852	163,471	22%
Gross Profit Margin	42%	42%		42%	42%

OPERATING EXPENSES
Selling and marketing	16,979	14,866	14%	33,341	26,991	24%
Research and development	15,837	12,339	28%	31,227	22,487	39%
General and administrative	15,014	14,512	3%	27,520	24,693	11%
Total	47,830	41,717	15%	92,088	74,171	24%

OPERATING INCOME	54,989	47,363	16%	107,764	89,300	21%

INTEREST INCOME (EXPENSE)
Interest income	32	4	>100%	49	45	9%
Interest expense	(2,487)	(143)	>100%	(5,379)	(233)	>100%

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