Most bank systems and services stocks rose last week, as selling pressure fueled by investor paranoia about the overall technology sector abated. After a frantic selloff of technology issues early in the week, many regained ground as market participants' worries about weak third-quarter earnings eased.
Diebold Inc. pleased Wall Street by posting hefty third-quarter earnings gains. The Canton, Ohio, maker of automated teller machines reported net income of $20.5 million, up 22% or 67 cents per share - 3 cents above consensus estimates as tracked by First Call Corp.
Diebold had $216 million in third-quarter revenues, up 14.7% from the year-earlier period.
"Performance in the third quarter was very gratifying," said Robert W. Mahoney, Diebold's chairman, president, and chief executive. "Incoming orders are also significantly stronger compared to the previous nine months. Our backlog going into the fourth quarter is very healthy, up some 15% from the 1994 third quarter, and positions us well for the close of another successful year."
Diebold's common stock closed Friday at $48.50 per share, up $3 for the week.
Banking systems firm Banctec Inc. and document processing company Recognition International Inc. closed their proposed merger last week as shareholders from both companies approved the deal.
Banctec chairman and chief executive Grahame Clark will be chairman, chief executive, and president of the combined firm, which will operate under the Banctec name.
Banctec officials said the combined firm will have annual revenues of about $500 million and will take a nonrecurring charge of about $75 million for restructuring. The Dallas-based company originally estimated the charge at about $65 million.
Company officials also said that beginning Jan. 1, Banctec will switch to a Dec. 31 ending for its fiscal year.
Banctec's common stock closed Friday at $21.375 per share, up $2.25 for the week.
See table on page 30
