Bank technology stocks ended the week mostly higher, after two weeks of declines that ran counter to the equities markets overall.
A rebounding dollar, coupled with investor expectations of higher first- quarter profits, drove share prices of most financial systems firms higher, particularly outsourcing and payment systems companies.
Diebold Inc. on Thursday reported higher revenues and earnings for the quarter ended March 31. The manufacturer of automated teller machines had net income of $15.2 million, or 50 cents per share, on revenues of $197 million. A consensus of Wall Street analysts had expected Diebold to report earnings of 48 cents per share for the period, according to First Call Corp..
The Canton, Ohio-based company's results compared with net income a year earlier of $12.7 million, or 42 cents per share, on revenues of $176.8 million.
"We are pleased to report that revenues were up 11% and earnings per share increased 19% compared to the 1994 first quarter," said Robert W. Mahoney, Diebold's chairman, president, and chief executive. "Orders were up 13% versus the prior-year period, with all major product lines showing double-digit increases."
Mr. Mahoney added that in the quarter Diebold finalized the purchase of Applied Network Technologies Inc., a supplier of integrated software for the college and university market, and also entered into a strategic alliance with Optical Data Systems Inc., which provides highly integrated networking solutions.
Diebold's common stock closed at $39.25 per share Thursday, up $3.50 for the week.
Total System Services Inc. announced last week that although revenues rose a whopping 30% in the first quarter, earnings per share were only slightly higher.
The Columbus, Ga., credit card processor reported net income of $4.8 million, an increase of 10% over the year-earlier period. Earnings per share were 7 cents, up from 6.7 cents. The consensus estimate had been 8 cents a share, according to First Call.
Total System's stock closed at $16.50 per common share Thursday, down 50 cents for the week.
Affiliated Computer Services Inc. announced last week that its president and chief operating officer has resigned.
Officials at the Dallas-based outsourcing firm said Charles M. "Chick" Young, one of the company's founders, had left to pursue other interests, and would be replaced by chief financial officer Jeffrey A. Rich. Mark A. King, a senior vice president for finance and accounting, would assume Mr. Rich's former position, they added.
"I am very pleased with the depth and breadth of talent in our management team in place today that is prepared to move ACS into the next century," said Darwin Deason, chairman and chief executive. "Chick Young has contributed a great deal to the success of ACS since its formation in 1988, and we wish him continued success in his future endeavors."
The company also announced last week it has acquired McCoy Meyers and Associates, an Amarillo, Tex.-based software firm that has developed Unix- based systems for more than 100 banking clients.
Common stock of Affiliated Computer Services closed at $28 per share Thursday, down $1.25 for the week.