Bank technology stocks mostly declined last week, joining a broader market selloff.
While corporate earnings reports coming out last week in general met the market expectations, bearish investors mainly brooded over what they see as another inevitable interest rate hike by the Federal Reserve Board following the Feb. 1 meeting of the Federal Open Market Committee.
Several financial technology companies reported higher quarterly earnings last week but still saw large declines in their share prices.
Credit scoring systems developer Fair, Isaac and Co. reported net income of $2.8 million on revenues of $25.6 million for the quarter ended December 31.
Although profits rose 23% from the same period last year, Fair Isaac's common stock decline nearly 12% percent for the week.
Earnings per share for the first quarter of the company's 1995 fiscal year were 45 cents, up from 37 cents in the year-earlier quarter, but Wall Street analysts had predicted 48 cents.
Officials at the San Rafael, Calif., firm said its operating margin had slipped from 18% to 17% of revenues in the quarter. The added lower margin was primarily the result of budgeted increases in staff and facilities expenses, according to Fair Isaac president and chief executive Larry E. Rosenberger.
"Having nearly tripled our revenues over the past three years, we recognize we have some catching up to do in terms of human resources and infrastructure development," he said.
Fair Isaac's common stock closed Friday at $43.25 per share, down $5.75 for the week.
Automated teller machine manufacturer Diebold Inc. announced fourth- quarter net income of $17.9 million, or $.59 per share, compared with net profits of $15.2 million, or 50 cents per share.
Canton, Ohio-based Diebold reported revenues of $207 million for the period, up from $176 million in the 1993 fourth quarter.
Earnings per share were down a penny from Wall Street estimates. Steven Purvis, an analyst with Roulston Research, told Reuters that Diebold's order flow was flat for the second quarter in a row, but he called it an "air pocket."
Diebold's common stock closed at $35.50 per share Friday, down $2.75 for the week.
Bank outsourcing firm Affiliated Computer Services Inc. announced last week net income for its second fiscal 1995 quarter was $4.3 million, or 32 cents per share, compared to $2.2 million, or 19 cents per share, in the year-earlier period.
Revenues for the second quarter were $72.3 million, up 8.7% from the comparable quarter of fiscal 1994.
Affiliated Computer Services' common stock closed at $23.75 per share Friday, unchanged for the week.
