JKHY
#Well, there was a couple of things, Dave.
First of all, you've got, obviously, all the development but also the additional headcounts we brought in to assist with the migrations for the move to the new payments platform.
And those costs are going to be around for the next 18 months or so.
At that point, when we get all the customers off on the platforms, we'll have to shut down one of the platforms.
We'll be getting rid of or displacing a lot of development people and a lot of the migration staff.
So you're going to see a really see nice pop in margins there.
The other thing that we're having to kind of grow over is all the development we've done in all these products in the previous 3 or 4 years for the treasury services, the ERMS solution, all those.
So depreciation and amortization are both up quite a bit.
And so we've got the costs that's rolling out there.
But yes, we still ---+ now we're just getting the sales going.
And so we're going to have to ratchet up the live customers on those to even offset the increased amortization and depreciation.
So that's going to happen slowly over the next, probably, 3 or 4 quarters that we'll be able to grow over that.
And that should give a little relief on margins or at least help to maintain the margins where we (inaudible) to offset the increased costs for the move on the payments platform.
And then when we get to shut down the payments platform, that's when you're going to see a huge increase in margins.
Because, again, that's over 20% of our total revenue right now that you're going to see a significant pop in margins.
For fiscal '18, well, we're going to finish this quarter at $0.93 to $0.95, which will put us full year with the impacts of TJCA (sic) [TCJA] in the $4.69 to $4.71 range.
Yes.
Had a couple of questions.
Maybe little bit looking out a little longer term.
On a theoretical basis, how do you feel about selling to FinTech disruptors.
Reading a lot in American Banker as well as the some of the other publications about some of these new companies coming out offering a lightweight core, maybe offering some payment capabilities.
On a theoretical basis, are you marketing to those.
Or you view that as something that impacts negatively your target market of regular banks and credit unions.
Yes.
So it's a good question, Pete.
It's a fine line that we walk in that discussion.
We don't want ---+ we're committed to the idea that we are not going to set ourselves up to be a competitor with our traditional customers.
So with that in mind, where are those opportunities where we can maybe partner with a traditional customer to enable them with a FinTech.
So we are not ---+ we are open to the idea ---+ instead of 2 negatives here, I'll say, we're open to the idea of working some of those partnerships.
We have some of those discussions ongoing today.
But we're very careful about the point of not positioning ourselves to compete with our traditional customers.
And by the way to your point about the lightweight core and being nimble and gathering online deposits, that's actually a topic in my discussion for next week because we are ---+ we will be offering that type of solution to our customers with products ---+ solutions that we already have at Jack Henry.
So that's ---+ we're well positioned to compete in that space with what we already have.
Okay.
That's helpful.
And then just a follow-up on Ensenta.
I've read through the description of what Ensenta does, and I've read through some of your material.
And I guess, I'm still not completely clear on some of the additional capabilities that Ensenta brought to Jack Henry.
And maybe you can give us some examples of other areas where it either solidified a lead or added new capabilities.
Sure.
So if you think about our traditional Enterprise Payments business, we were very strong in commercial deposits, working with commercial customers, particularly on the banking side of our business.
So we're the most widely installed solution in that space.
We had some penetration on the credit union side and we had some penetration for consumer deposits, but we were not industry leader in that space.
And the reason we weren't the industry leader is because Ensenta was.
So if you put Ensenta together with our EPS platform, we have the industry-leading solution for commercial deposits, consumer deposits, mobile deposits, essentially across the board.
Additionally, Ensenta brought to us technology for working in the ATM environment that we didn't have and the shared branching environment on the credit union side for processing payments.
Neither of those were huge part of their business, but it broadened our suite, which of course is what we're always looking to do on the ProfitStars.
The is a ProfitStars solution, by the way.
So always looking to broaden that offering on the ProfitStars side to try and fill as many holes as we can for those customers who do business with ProfitStars.
And of course, many of them are noncore Jack Henry customers.
So we have to have a best of breed, very broad offering to be competitive in that space.
They also brought us some best of breed risk solutions.
Yes, right.
Yes, risk management technology around payments that we ---+ we had a very solid offering, but they had a better offering.
So that augmented that piece of our story as well.
Thanks, Olivia.
As Dave mentioned, I want to remind everyone that we are having our annual Analyst Day next Monday afternoon at the Omni in Atlanta, which the afternoon presentations will be webcast.
We're doing it just like we have in the past.
We're going to have all of our group presidents.
Greg Adelson, our GM of Payments and our National Sales Manager will all do presentations as will Dave and I and Mark Forbis, our CTO.
There will be open Q&A.
And then in the evening, there will be a mini tech fair, where I believe, we have 6 of our hotter products that will be shown there, which includes Banno, treasury services, the ERMS and the new payments platform will all be shown there.
So we still got some open slots.
If you want to go, you can either e-mail myself or Vance Sherard.
So to wrap up, we're pleased with the results from our ongoing operations and the efforts of all of our associates to take care of our customers.
I thank our associates for their hard work.
Our executives, managers and all of our associates continue to focus on what is best for our customers and shareholders.
I want to thank you again for joining us today.
And Olivia, will you please now provide the replay number.
