Another Banner Week for Bank Systems Stocks

Bank systems stocks continued their blistering summer rally last week, as investors quenched their thirst for technology issues overall.

While blue chip stocks rose only slightly last week, the Nasdaq market index, laden with technology firms, continued to rocket to new highs.

The stock of Broadway & Seymour Inc., the financial systems developer, rose 38% to hit a new 52 week high, propelled by a positive report from an analyst and rumors that the firm would soon sign a contract with mutual fund giant Fidelity Investments.

Volpe, Welty analyst Paul Bloom issued a report last week saying he believed the Charlotte, N.C.-based company's near-term growth rate could accelerate to 30% annually, up from his previous estimate of 25%.

Mr. Bloom also said Broadway & Seymour was in a better position because the sale of its community banking business to Jack Henry & Associates earlier this month should result in a more predictable earnings flow.

Volpe, Welty raised its 12-month price target to $36.75 per share, up from $28 per share.

Broadway & Seymour officials declined to comment on the speculation regarding the Fidelity deal, which was reported in USA Today Friday.

Broadway & Seymour's common stock closed at $29.25 per share Friday, up $8.00 for the week.

Credit card processor Total System Services Inc. reported last week its net income for the second quarter increased 15.1% from the year-earlier period, to $6 million. Earnings rose to 9.3 cents per share, from 8.1 cents for the same period last year.

Revenues for the second quarter were $59.1 million, an increase of 31.9%.

"We are very proud of our strong performance for the second quarter and the first half of 1995, and the progress we continue to see in our business." said Richard W. Ussery, Total System's chairman and chief executive.

The stock of the Columbus, Ga.-based firm - which is 80% owned by Synovus Financial Corp. - closed at $16.625 per share, up 50 cents for the week.

Verifone Inc. announced Wednesday that it has filed an application to list its common stock on the New York Stock Exchange. The stock of the Redwood City, Calif.-based vendor of point of sale payment systems is currently traded over Nasdaq.

"We believe that listing on the NYSE will benefit Verifone stockholders through improved trading efficiencies, lower transaction costs, and enhanced liquidity," said Hatim A. Tyabji, Verifone's chairman and CEO. "The NYSE provides greater exposure to the worldwide investment community, and we view that as positive and consistent with our strategic direction."

Verifone's common stock closed Friday at $25.50 per share, up $1.75 for the week.

CFI Proservices Inc. of Portland, Ore., announced last week that Commerce Bancorp, Cherry Hill, N.J., has licensed its PC-based home banking software, called Personal Branch. The $2.3 billion-asset bank will install the software by yearend, officials said. Financial terms were not disclosed.

CFI's common stock ended the week at $13.25 per share, down 37.5 cents.

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