The two-week rally in bank technology stocks stalled last week, as investors did some profit-taking ahead of the Memorial Day weekend.
Two companies, SEI Corp. and Interlinq Corp., experienced big drops in their common stock prices after the release of negative news.
Wayne, Pa.-based SEI was the subject of a critical article in last week's Barron 's, which contributed to a loss of $2 in its share price during the week, to a close of $17.50 Friday.
Customer Losses Reported
Barron's reported that SEI, an administrator of mutual funds and data processor for bank trust departments, had recently lost many clients in its investment advisory business and faced high levels of dissatisfaction among its trust systems customers.
Chief operating officer Henry Greer denied any large loss of clients, adding that complaints from SEI's trust customers have been addressed.
Kirkland, Wash-based Interlinq, a developer of mortgage processing software, announced that its results for the fourth quarter of fiscal 1994, ending June 30, would probably not meet analysts' estimates of 13 cents to 15 cents per share.
"Based on lower than expected sales and related data this quarter, earnings expectations for the June quarter now appear fairly aggressive," said Stephen Yount, Inteflinq's chief financial officer. "While we anticipated sales to existing customers to slow down considerably, orders from new customers are lower than expected."
Interlinq's stock closed at $5.50 a share Friday, down $1.50 for the week.
National Computer Systems Inc., a major developer of trust software, reported higher firstquarter revenues and profits for fiscal 1994. For the three months ended April 30, National Computer reported revenues of $68.8 million and net income of $2 million, or 13 cents per share, up from 11 cents per share in the year-earlier quarter.
National Computer's stock closed at $12.375 a share Friday, down 50 cents for the week.