Bank technology stocks were mixed last week as the overall equities market did its best to move sideways instead of up or down.
As the Dow Jones industrial average stagnated near the 4,000 level it broke for the first time two weeks ago, banking software companies generally fell as payments-technology firms rose.
Community bank software developer Jack Henry & Associates announced last week that it was restructuring its BankVision subsidiary, a move that could negatively impact earnings for the next two fiscal quarters.
The BankVision unit, which develops and markets international banking software, will be relocated from Durango, Colo., to Jack Henry's corporate headquarters in Monett, Mo., by the end of June 1995, company officials said.
They added that the division's president, Raymond L. Walters, had been relieved of his duties as a result of the restructuring.
According to Michael E. Henry, Jack Henry's chairman and chief executive, the company expects BankVision to negatively impact earnings for the current quarter, and possibly the following three months, by 2 to 3 cents per share per quarter. He added that improving results from other business units were expected to partially overcome these charges to earnings.
Officials said they expected to continue to participate in the international market for banking software, adding that the BankVision unit is expected to return to profitability during the fiscal year beginning July 1, 1995.
Automated teller machine manufacturer Diebold Inc. announced Wednesday that it intended to acquire Applied Network Technologies Inc., a software company based in Waco, Texas, for an undisclosed sum.
Prior to the acquisition pact, Diebold officials said they had used Applied Network's CardOne software as part of the Canton, Ohio-based company's card-based payment and information system for the college and university market since 1992.
"This acquisition is an example of our corporate strategy to strengthen our software and systems-integration capabilities," said Robert W. Mahoney, Diebold chairman, president and chief executive. "This is particularly important as we continue to expand into new markets such as education and health care."
Software and systems integrator American Management Systems Inc. announced last week that its board of directors had authorized the purchase of up to $10 million worth of the company's common stock through open market and negotiated sales.
Officials at Fairfax, Va.-based AMS said the repurchased shares would be used to offset dilution coming from the firm's stock option and restricted stock plans, and for other corporate purposes.