Jack Henry & Associates Inc. F4Q09 (Qtr End 06/30/09) Earnings Call Transcript

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2009-08-19 11:09:21.0

Tags: Jack Henry & Associates Inc., Call Transcript, Quarter, Earnings, Tools & Techniques, Management, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) We will go first to John Kraft with D. A. Davidson.

John Kraft - D. A. Davidson

Just following on the Goldleaf, since that was the most recent thing you talked about here. Obviously, you haven't had a chance to really dig in. I know it's early, but presumably part of the attraction of the deal was the opportunity to cross-sell into their customer base. Have you had a chance to look into how much overlap there is?

Kevin Williams

John, only at a very high level, we certainly know what most of their products are. Again, as I mentioned, very strong presence in the companies separately and certainly combined from the standpoint of Remote Deposit Capture, which is a very nicely growing business still, even though growing at a somewhat slower rate than it was for the last couple years.

Some of their ACH products look particularly attractive, we believe for a certain segment of our customer base. As Kevin mentioned, there is a number of overlapping areas so there's some cost synergies, but we'll really begin starting a deeper dive this next week and looking at some of the different product lines, figuring out which ones we will be marketing through our bank and credit union segments and which ones will be marketed through ProfitStars and anticipate that frankly all of them will be marketed through all of those segments, but the methodology might be a little bit different.

So, we have a very high level feel for the products, but not detailed at this point.

John Kraft - D. A. Davidson

Then Kevin, just trying to get a better feel for the status of the implementation at Whitney and Community Bank, you said that that obviously the backlog jumped because of some of these deals and that it will have an impact on the license line for a while. Is that another couple quarters or a year or how long will it take to kind of get these deals finished?

Kevin Williams

Well, the Whitney transaction, John, the $12 billion decision, that's about a two-year implementation process. We actually had a kickoff meeting last week. But I will tell you, we had implementation team there basically before the contracts were signed to start laying out the conversion plan and get people there.

So, there was some software shipped there. There was also little that of a hardware there, there will be more hardware coming either late this quarter, next quarter at Whitney. The other pieces, like ARGO will not ship until later and, in fact, I'm not sure what the timeline is of that, John, but there will be software trickling in from Whitney for probably next four quarters.

 

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