Temenos announces new ILF contract signings for full year 2004 at US$ 62 million, up 22% compared to last year
14 June 2005
Geneva, 13th January 2005: 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 fourth quarter and full year of 2004.
The value of Initial Licence Fees (ILF) for new contracts signed during the full year of 2004 amounted to US$ 62 million, an increase of 2 2% compared to the same period last year, TEMENOS' strongest ever year. During the fourth quarter new contract signings amounted to US$ 19 million compared to US$ 22 million for the previous year (-14%). In the second half of the year signings were at US$ 30 million, up 5% on 2003. TEMENOS is maintaining its full year 2005 ILF signing target at US$ 80 million.
During the year, signings have shifted towards larger deals due to take up of TEMENOS T24™, TEMENOS’ flagship product and to TEMENOS CoreBanking™ (TCB). Median deal size continued to increase with a median deal size of US$ 2.6 million for the year compared to US$ 2.2 for the full year 2003 (+ 18%). During 2004, TEMENOS continued to attract top tier clients as a result of superior products in the form of TEMENOS T24™ and TEMENOS CoreBanking™ (TCB). More than 40% of TEMENOS' signings were made with tier 1 and tier 2 financial institutions, compared with around 29% for 2003. In 2004 more than 73% of signings were with retail and universal banks compared to 55% for 2003 in line with TEMENOS' retail strategy.
The growth in signings for 2004 is driven by very strong performance in Asia, where TEMENOS almost tripled signings compared to last year, EMEA where signings grew at more than 20% and approximately flat signings year on year in Northern America. TEMENOS has not been able to replicate last year’s performance in South America whe re TEMENOS signed Bansefi in Mexico, TEMENOS' second TEMENOS CoreBanking™ deal in the fourth quarter of last year. However pipeline in South America is now growing strongly on the back of now live reference accounts and TEMENOS is confident that it will support 2005 targets.
From a product point of view, TEMENOS T24™ grew at approximately 10% compared to last year whilst the TEMENOS CoreBanking™ offering almost doubled compared to last year. TEMENOS has been able to reach its target of two TEMENOS CoreBanking™ deals for the year, the first one in the first quarter with the Bank for Agriculture and Agricultural Cooperation (BAAC) in Thailand and the second one during the last quarter of the year with Bank Thai. Bank Thai has already implemented T24™ for its trade finance division and will implement TEMENOS CoreBanking™ to support its retail operations. TEMENOS have now six clients which have choosen the TEMENOS CoreBanking™ offering, three of whom are now live.
During the fourth quarter TEMENOS generated approximately US$20 million of positive operating cash flow bringing the total for the year to approximately US$13 million. This brings TEMENOS' closing cash to approximately US$30 million, an increase in net cash of around US$4 over last year.
Andreas Andreades, CEO, TEMENOS says: “I am pleased with achieving a 22% growth in ILF year on year. Deal flow and pipeline evolution during the quarter was strong and consistent with prior quarters. I am particularly pleased with the results we are achieving in both Asia Pacific where we tripled ILF signings this year and Europe where we grew by 20%. The significance of our results is especially important when viewed against a market background of reported deal slippage and longer sales cycles. Our sales targets for this year 2005 remains at US$ 80 million as well as our guidance of 2 – 4 TCB deals during the coming year.”
TEMENOS has brought forward the conclusion of its audit and presentation of its audited full year 2004 results by three weeks. A conference call will take place on Wednesday the 23rd of February 2005 at 2.30 pm CET to present its Fourth Quarter and Full Year 2004 Results.
Given the time lag until the publication of our full year results and in order to facilitate better communication with analysts and investors TEMENOS is initiating a Q&A sessions following the publication of this business update. The call details are as follows:
Date: Thursday, January 13th 2005
Time: 2:30pm until 3:00pm (CET)
Dial-in number from Europe: +41(0) 91 610 56 00
Dial-in number from U.K.: +44 (0) 207 107 06 11
Dial-in number from the U.S.: +1 (1) 866 291 41 66
Digital playback will be available for 48 hours by phone starting one hour after the conference call:
Dial-in number from Europe: +41(0) 91 612 43 30, Conference ID 780#
Dial-in number from U.K.: +44 (0) 207 866 43 00, Conference ID 780#
Dial-in number from the U.S.: +1 (1) 412 317 00 88, Conference ID 780#
-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