Most bank systems stocks were mixed in the face of overall market doldrums last week, as investor attention was temporarily diverted to the dollar's dramatic rebound.
While Wall Street watchers tried to gauge the impact of a stronger dollar on the U.S. equities market, technology issues continued their upward trend last week in anticipation of Microsoft Corp.'s much-hyped launch this Thursday of the Windows 95 personal computer operating system.
Bank systems outsourcing firm Bisys Group Inc. reported lower net income for its fourth fiscal quarter, ended June 30, mainly due to acquisition costs booked during the quarter, company officials said.
For the period, Little Falls, N.J.-based Bisys reported net income of $629,000, or 3 cents per share, compared with $5.8 million, or 25 cents per share, for the corresponding period in 1994. The earnings results were in line with Wall Street analyst forecasts, according to First Call Corp.
Revenues increased however, reaching $54.7 million, up 14% from the comparable period.
Officials said the lower quarterly earnings resulted from a $5.6 million charge taken in the period to cover the cost of acquiring Document Solutions Inc., a developer of check-imaging software.
The company also announced last week that it closed the sale of its loan services division to an unnamed "financial services company" for an undisclosed sum.
Officials said the division, which provides servicing for mortgage loans for banks, was unprofitable, and the sale would not have a material impact on Bisys' fiscal 1996 earnings.
Bisys' common stock closed at $24.625 per share Friday, down $2.875 for the week.
Mortgage software developer Interlinq Corp. reported a net loss in its fourth fiscal quarter, capping a year of red ink for the Kirkland, Wash.- based firm.
Interlinq reported a net loss of $342,000, or 6 cents a share, for the quarter ended June 30, compared with net income of $202,000 for the year- earlier period. Wall Street analysts had expected a quarterly loss of 4 cents a share, according to First Call.
For the fiscal year, the company reported a loss of $1.1 million, compared with fiscal 1994 profits of $2.9 million.
"The mortgage lending industry experienced a dramatic decline in loan volume when interest rates rose last year," said Stephen Yount, chief financial officer and interim president. "Unfortunately, our 1995 results were negatively impacted by this decline in business activity for our customers and prospects."
Interlinq has instituted a cost-cutting program and reorganized its sales force to meet the prevailing market conditions, officials said.
Interlinq's common stock closed Friday at $3.25 per share, down 75 cents for the week.