Bank technology stocks were a mixed bag last week, as it appeared investors had resolved to engage in some new year profit-taking.
Software and payments systems firms, whose stocks did particularly well in 1994, were subject to some selling pressure in the first week of 1995.
Bank card processor Total System Services Inc. announced last week that its fourth-quarter net income rose 13.6% to $7.2 million, or 11 cents per share, up from $6.3 million, or 10 cents per share, for the same period in 1993.
Revenues for the fourth quarter of 1994 were $53.8 million, an increase of 30.7%, compared with $41.2 million in the year-earlier period.
For 1994, Columbus, Ga.-based Total System Services' net income increased 11.2% to $22.5 million, or 35 cents per share, up from $20,223,061, or 31 cents per share for 1993. Revenues for the year were $187.6 million, an increase of 23.3%, compared with revenue of $152.1 million reported for 1993.
The firm also announced that revenues coming from a credit card processing agreement with Bank of America would be affected by a delay in the conversion the bank's card accounts to Total System's new software until 1996.
Total System's common stock closed at $16.75 per share Friday, down 37.5 cents for the week.
Payments processor and outsourcer First Data Corp. said last week that its telephone-operator services division is closing operations centers in Omaha and Indianapolis.
First Data said the closure of the facilities, which currently employ about 1,400 people, was the result of increasing operational expenses and the decision to consolidate the business in mega-voice centers located in other cities.
First Data's stock closed at $46.875 per share Friday, down 67.5 cents for the week.
Systems outsourcing firm Fiserv Inc. announced last week that it has acquired Recom Associates Inc., a Florida-based provider of office automation and communication network integration services to the financial industry.
Recom, which was formed in 1987 and now has 45 employees, provides hardware and software installation, maintenance, on-site education, and support for the financial institution clients of Fiserv and other leading information technology providers. Terms of the agreement were not disclosed.
"The team at Recom consists of specialized professionals who are dedicated to meeting a growing demand in the financial industry for support teams that are focused on designing, installing, and maintaining internal and external communication networks," said George D. Dalton, Fiserv's chairman and chief executive officer. "Fiserv will build upon this foundation of expertise as we expand on our capabilities in building local and wide-area communication networks for financial institutions."
Fiserv's common stock closed at $22 per share Friday, up 12.5 cents for the week.
