Jack Henry & Associates Inc. (NASDAQ:JKHY) Q2 2017 Earnings Conference Call - Final Transcript
Feb 08, 2017 • 08:45 am ET
Good day, ladies and gentlemen, and welcome to the Jack Henry & Associates Second Quarter 2017 Earnings Conference Call.
I would now like to turn the call over to Kevin Williams. You may begin.
Kevin D. Williams
Thank you, Michelle. Good morning. Thank you for joining us today for the Jack Henry & Associates second quarter fiscal year 2017 earnings call. I am Kevin Williams, CFO; and on the call with me today is, David Foss, our President and CEO.
The agenda for the call this morning. In a minute, I'll turn it over to Dave to provide some of his thoughts about the business, industry, and performance of the quarter. And then, I'll provide some additional thoughts and comments regarding the press release, we put out yesterday after market closed. And I'll update guidance for FY 2017 and then, we will open the lines up for questions.
I need to remind you the remarks or responses to questions concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements or deal with expectations about the future. Like any statement about the future, these are subject to a number of factors, which could cause actual results or events to differ materially from those which we anticipate due to a number of risks and uncertainties. And the Company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release, and the sections in our 10-K entitled Risk Factors and Forward-Looking Statements.
I'll now turn the call over to Dave.
David B. Foss
Thank you, Kevin. Good morning, everyone. We're pleased to report another strong operating quarter with record revenue and operating income. As in the past, I'd like to begin today by thanking our associates for all the hard work that went into producing those results for our second fiscal quarter.
As we discussed in the previous call, we divested our Alogent division at the end of last fiscal year and we still had Susquehanna in the mix through November. So the comparable quarter includes a slight headwind for revenue growth. Despite that headwind, total revenue increased 5% for the quarter, organic revenue growth was 7% for the quarter. In line with the guidance we have provided on previous calls, our payments businesses posted a 5% increase in revenue, excluding the impact of deconversion fees.
Our outsourcing and cloud revenue growth for the quarter was 17%, and if you exclude the impact of deconversion fees from both quarters, we saw a very solid 13% increase. Our sales team saw a good success in the quarter with a few of the strategic solutions we've discussed in the past. They signed 11 new Hosted Network Services or HNS deals in the quarter, which is almost as many as they signed in all of FY 2016. Additionally, they've signed 27 Banno Mobile contracts, and secured the first agreements for our new treasury management solution, and our new enterprise risk mitigation solution.
As I mentioned