Temenos trading update
14 April 2003
Temenos announces new contract signings for Q1 2003 Exceeds Q1 ILF signings targets by 5%; Company exceeds Q1 revenues and earnings targets and reconfirms guidance for 2003
Geneva, Switzerland, April 14th, 2003. TEMENOS Group AG (SWX: TEMN), a global vendor of integrated banking software, today announced new contract signings for the first quarter of 2003.
The value of Initial Licence Fees (ILF) for new contract signed during the first quarter of 2003 amounted to USD 8.2 million, 5% higher than our target of USD 7.8 million. We exceeded our target in Northern Europe and in the Middle East; and were slightly below target in Asia Pacific, Southern Europe and CIS regions. ILF signings comprised 75% new licences and 25% upgrade sales to existing customer.
During the quarter, contracts were signed across the regions with Fortis Global Custody Management and Trustee Services (Ireland) Limited in Dublin, Industrial and Commercial Bank of China in China, and Central Bank of Nigeria in Nigeria. We were also pleased to see a number of implementations going live during the quarter, including Commerzbank Zurich, Schroder Zurich, MeesPierson Guernsey and RZB Poland.
In addition to exceeding our target ILF signings, we exceeded our targeted revenues for the quarter while managing our cost base within our expectations returning the group back to growth and profitability. Furthermore we beat our target cash plan at the end of March.
“We are very satisfied with our performance during the first quarter of this year which has exceeded our signing targets for the third time in a row. This is of particular importance as we seek to rebuild investor confidence and reaffirm the strength of our business model. The business climate continues to remain challenging in terms of spending amongst our client and prospect base. However given our strong pipeline we are confident that we will achieve our targets for the second quarter and for the full year of 2003”, said George Koukis, Chairman and CEO.
2003 Guidance
Our performance during the first quarter of the year enables us to reconfirm our guidance for full year 2003 revenues of approximately USD 130 million. Anticipated 2003 revenues originating from business closed to date represent 83% of our target revenues. The remaining target revenues are expected to be generated from signings during the second quarter of the year, while potential signings in Q3 and Q4 of 2003 could represent an upside to our full year 2003 targeted revenues.
Operating costs are forecast at approximately USD 120 million while cash costs are forecast to be not more than USD 104 million.
Presentation of Q1 key financials and operational update will be released on Tuesday May 13th.
-ENDS-
About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com
For more information, contact:
Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com
Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com
Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com
Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com