Temenos announces record new contract signings for Q1 2004 at US$ 15.7 million and increases its H1 2004 ILF signing target
06 April 2004
Geneva, 6th April 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 first quarter of 2004 and increased its first half 2004 ILF signing target.
The value of Initial Licence Fees (ILF) for new contracts signed during the first quarter of 2004 amounted to US$ 15.7 million, an increase of 91.5% compared to the same period last year. TEMENOS significantly over achieved its target of US$ 9.0 million (+74.4%), this performance represents its highest ever signings for the first quarter, traditionally a low signings quarter of the year. TEMENOS has decided to increase its first half ILF signings targets from US$ 25.0 million to US$ 31.7 million (+ 26.8%) maintaining its Q2 ILF target at US$ 16.0 million.
During the quarter signings have continued to shift towards larger deals that have been made possible due to the launch of TEMENOS T24, TEMENOS’ flagship product and also the success of TEMENOS CoreBanking, TEMENOS’ Tier 1 mainframe solution. TEMENOS’ success in retail banking is demonstrated by the continuing ILF signing shift toward retail banking totalling 69% of TEMENOS’ Q1 signings compared to 42% in Q4 2003, to 38% in Q3 2003 and an average of 29% for the previous 12 months. TEMENOS had an excellent performance in Europe where we the company continues to see increased demand across all segments. For these reasons TEMENOS’ twelve months ILF signings running rate is now at US$ 58.5 million, its highest level ever, compared to US$ 51.0 million last quarter and US$ 54.1 million for the same period last year. TEMENOS continues to see growing demand in Europe and expects to further strengthen its presence in retail banking. This places TEMENOS in a very strong position to reach its ILF signings target of US$ 68.0 million for the full year.
During the quarter, TEMENOS reached or exceeded its target in Asia Pacific, the Americas and Europe and were slightly below target in the Middle East and Russia. ILF signings comprised 94% new licences and 6% upgrade licences to existing customers in accordance with our budget.
During the quarter, new single and multiple site licence contracts were signed with the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand with IBM and Thai Equipment Research, to upgrade the bank’s core processes across its 600 branches serving over 10 million accounts, Anglo Irish Bank Corporation to replace the core system for corporate lending, corporate deposits and retail deposits in the UK and Ireland, Overseas Private Investment Corp. in the United States, Banque de France in France, and another significant undisclosable signing with a Tier 1 bank.
“I am delighted with our performance during the quarter. We have been able to win deals with some of the world most prestigious banks to run on our product which is evidence of our product superiority and our sales execution. Our strategy to pursue growth and the more profitable retail banking sector is starting to deliver results. Our performance during the quarter which also follows a strong Q4 2003 demonstrate that we continue to gain market share”, said Andreas Andreades, CEO.
Calendar & Guidance
TEMENOS will hold a conference call on Wednesday the 28th of April 2004 at 2.30 pm CET to present its First Quarter 2004 Results and Full Year guidance.
-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