For the fiscal year ended June 30, 2000, total revenues increased 16% to $225.3 million compared to $193.5 million in fiscal 1999. Income from continuing operations increased 5% to $34.4 million, or $.81 per diluted share, compared to $32.7million, or $.77 per diluted share, in fiscal 1999. All prior periods have been resated to reflect the 2-for-1 split effective March 2, 2000 and the acquisition of Sys-Tech, Inc. which was accounted for as a pooling of interests and closed June 1, 2000, as of the beginning of the earliest period presented.
"The revenue and earnings growth during the second half of this fiscal year reflects the demand for technology that built during the Y2K moratorium last year. This is further demonstrated by the 97% increase in fourth quarter software licensing and installation revenues," said Michael E. Henry, Chairman and CEO.
Software licensing and installation revenues in the fourth quarter increased to $21.8 million and accounted for 31% of total revenues compared to $11.1 million or 25% of fourth quarter 1999 revenues. In fiscal 2000, software licensing and installation grew 22% to $57.7 million or 26% of total revenues compared to $47.2 million or 24% of fiscal 1999 revenues. Fourth quarter maintenance, support and services revenues increased 52% to $27.7 million and hardware sales increased 27% to $19.9 million. In fiscal 2000, maintenance, support and services revenues increased 37% to $97.5 million and hardware sales decreased 7% to $70.1 million.
Backlog was $104.4 million at June 30, 2000 compared to $91.2 million, at March 31, 2000, and $86.6 million at June 30, 1999. The backlog for in-house products and services totaled $43.0 million at year end compared to $27.9 million a year ago. Outsourcing backlog was $61.4 million compared to $58.7 million a year ago.
"Software licensing and installation is our most profitable revenue component, and consequently, its revenue growth helped boost gross margin to 48% in the fourth quarter, up from 46% in the fourth quarter a year ago," said Terry Thompson, CFO. Conversely, full year gross margin was 44%, down from 45% in the comparable period of fiscal 1999 due to Y2K and the mix of revenues. Fourth quarter gross profit grew 58% to $33.0 million compared to $20.9 million in the fourth quarter of fiscal 1999. Fiscal 2000 gross profit was up 14% to $98.1 million compared to $86.3 million a year ago.
"We continued to build our business capabilities and customer base through strategic acquisitions during the year. In fiscal 2000, we completed four acquisitions including the Open Systems Group, with over 800 customers and UNIX-based technology, BancData Solutions providing a strong outsourcing base on the West Coast, Symitar Systems strengthening our credit union operations, and Sys-Tech adding expertise in uninterruptible power supply systems and the design and maintenance of computer facilities," Henry noted. "These acquisitions contributed to earnings in the fiscal year."
Operating expenses for the fourth quarter increased to $15.1 million or 22% of revenues and for fiscal 2000 to $47.1 million or 21% of revenues, reflecting increasing costs of operating, including some arising from acquisitions this year. "Selling and marketing expenses increased the most during the year, growing 36% to $19 million. We continue to devote 3% to 4% of revenues to research and development. General and administrative expenses grew more slowly than revenues, increasing 38% in the quarter and 16% for the year," said Michael R. Wallace, President and COO.
"The fourth quarter marked the first customer rollout of our new Internet portal, NetHarborTM," Wallace continued. The new product allows banks to launch websites that offer customer convenience and provide a new revenue source for both financial institutions and for JKHY. NetHarbor allows the bank's clients to customize their bank-branded home page content to meet their daily internet needs with real time online banking transactions; account information and services plus news, local weather forecasts, stock quotes, community affairs, favorite internet links, and e-shopping. We expect to add integrated online brokerage to NetHarbor's service offerings before calendar year end.
Fourth quarter operating income was $17.8 million compared to $12.2 million in last year's fourth quarter. Fiscal 2000 operating income was $51.0 million compared to $49.7 million in fiscal 1999. Pre-tax income in both the quarter and the year reflect the lower interest income and higher interest expense resulting from the year's acquisition activities. Fourth quarter pre-tax income totaled $17.4 million compared to $12.4 million and fiscal 2000 pre-tax income was $51.8 compared to $51.6 million a year ago.
At June 30, 2000, the balance sheet reflected strong growth during the year with assets growing 83% to $325 million and stockholders' equity up 33% to $154.5 million. Long-term and short-term debt totaled $71 million at year-end. On July 14th, the company filed a registration statement with the Securities and Exchange Commission for a proposed offering of five million shares of its common stock comprised of two million shares offered by the Company and three million shares offered by selling stockholders. The Company intends to use its net proceeds from the offering for repayment of debt, working capital, capital expenditures and other general corporate purposes, including potential acquisitions.
Jack Henry & Associates, Inc. provides integrated computer systems and ATM networking products for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 2,850 customers nationwide. For additional information on Jack Henry, visit the company's web site at 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 its registration statement filing of July 14, 2000. These statements should be reviewed by potential investors. 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.
