Bank technology stocks were mixed last week, as quarterly earnings reports generally met Wall Street's expectations.
Alltel Corp., a telecommunications and information-processing firm, reported lower fourth-quarter earnings last week, mainly due to a previously announced $32 million writedown of assets held by its unit, Systematics Information Services Inc., officials said.
Little Rock, Ark.-based Alltel said net income for the quarter was $44 million, or 23 cents per share, compared to $69.1 million, or 36 cents per share, in the same period of 1993. But without the writeoff, net income would have risen 10%, to $76.2 million, officials said.
Fourth-quarter revenues totaled $772.4 million, up 18% from the year- earlier period.
"The company's strong 1994 operating results reflect the effects of our repositioning efforts in telephone and the growing contribution of our nontelephone operations," said Joe Ford, Alltel chairman and chief executive officer.
"Despite the effects of continued consolidation taking place in the banking industry, Alltel's information services segment experienced growth in 1994 revenues and operating income due to the contributions of its newer businesses and the acquisition of a health care software company," he said.
Alltel's common stock closed at $28.50 a share Friday, down $2 for the week.
A competitor to Alltel in the bank outsourcing business, Milwaukee-based Fiserv Inc., reported fourth-quarter net income of $10.1 million, or 25 cents per share, compared to $8.3 million, or 21 cents per share, in the last three months of 1993.
Its fourth-quarter revenues reached $152 million, a 20% increase from 1993, officials said.
"Overall, sales from new contracts for data processing were up from the 1993 record year, with the addition of over 300 new clients who left other providers for Fiserv," said chief operating officer Leslie M. Muma.
Fiserv's common stock closed at $21.75 per common share Friday, down 25 cents for the week.
One earnings disappointment came from bank software developer Hogan Systems Inc., which reported net income for its third fiscal 1995 quarter of $307,000, or 2 cents per share, compared with net profits of $1.7 million, or 11 cents per share, in the third fiscal quarter of 1994.
Michael H. Anderson, Dallas-based Hogan's chairman and chief executive, said his company had broadened its product line and beefed up its professional services business.
"We're naturally disappointed that new (software) license sales for the quarter were not higher," he said, adding that Hogan is "confident of significantly improving the prospects for our software business in fiscal 1996."
Hogan's common stock closed at $5.625 a share Friday, down 75 cents for the week.