Temenos announces new contract signings for Q2 2004 at US$ 16.2 million bringing H1 2004 ahead of last year by 43.7%
09 July 2004
Geneva, 9th July 2004: TEMENOS Group AG, (SWX:TEMN) a leading provider of integrated core banking systems for the financial services industry, today announced new contract signings for the second quarter of 2004.
The value of Initial Licence Fees (ILF) for new contracts signed during the second quarter of 2004 amounted to US$ 16.2 million, an increase of 15.7% compared to the same period last year. During the second quarter TEMENOS delivered in line with its target of new signings of US$ 16.0 million bringing the first half of 2004 ahead of its initial target by US$ 6.9 million (+27.6%) and ahead of last year by US$ 9.7 million (+43.7%),. TEMENOS is maintaining its Q3 ILF target at US$ 11.0 million which means to reach the full year ILF target of US$ 68.0 million it must achieve Q4 2004 ILF signings of US$ 25.1 million instead of US$ 32.0 million as initially targeted.
During the quarter, signings have continued to shift towards larger deals due to take up of TEMENOS T24, the company’s flagship product. Average deal size continued to increase with an average deal size for the first half of the year at US$ 2.6 million compared to US$ 1.7 million for the same period last year and an average of US$ 2.2 for the full year 2003. TEMENOS’ success in retail banking is demonstrated by the continuing ILF signing shift toward this sector totalling 45% of TEMENOS’ Q2 signings and bringing it to 57% for the first half of the year compared to 13% for the same period last year.
TEMENOS reached or exceeded its target in Europe and in CIS region, seeing increased demand across all segments. In the first half of the year all regions are either ahead or on target. ILF signings comprised 92% new licences and 8% upgrade licences to existing customers. In 2004, TEMENOS has set a target of 10% of its signings to be derived from upgrade licences to existing customers.
TEMENOS’ 12 months ILF signings running rate (ie signings achieved in the 12 months to June 30th, 2004) is now at US$ 60.7 million, its highest level ever, compared to US$ 51.0 million on December 31st 2003 and US$ 58.5 million on March 31th 2004.
During the quarter, new single and multiple site licence contracts were signed with Sacombank, Vietnam’s leading joint stock commercial bank, to supply real-time banking services for the bank and more than 60 branches nationwide, United Nations Federal Credit Union (UNFCU) in the U.S. to provide its members with functionality-rich, multiple currency financial service capabilities in real time, Raiffeisen Krekova Bana d.d in Slovenia, Bank of Botswana in Botswana and the Joint Stock Commercial Bank for Social Development « Ukrsotsbank » in Urkraine.
Andreas Andreades, CEO, TEMENOS says: “I am satisfied with our results during the first half of the year. We are entering the second half ahead of our ILF signings targets. This, together with the strength of our products and pipeline gives me the confidence that we will reach our full year ILF target of US$ 68.0 million and deliver on our revised EBITDA guidance of approximately US$ 32.0 – 37.0 million for the year.”
Calendar
TEMENOS will hold a conference call on Wednesday the 28th of July 2004 at 2.30 pm CET to present its Second Quarter 2004 Results.
-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