Temenos signs major TCB core banking deal with global tier 1 bank and increases ILF signings outlook for 2005
08 August 2005
TEMENOS Group AG (SWX: TEMN), a provider of integrated core banking software, is pleased to announce that it has signed a major TCB Core Banking deal with a global Tier 1 European bank.
As a result of the deal, the outlook on Initial License Fee (“ILF”) signings for 2005 is raised to US$ 80-85 million from US$ 70-75 million (2004: US$ 62 million), up 33% from the prior year. Licence revenues arising from the deal are expected to be recognised over the next 36 months starting immediately. A significant part of the deal licence revenues will be recognised after 2005 contributing annually to our results double digit earnings per share as well as increased visibility. Our earnings outlook for 2005 remains for EPS growth of 20% to 25% on a reported basis compared to 2004 (2004 reported EPS: US$ 26 cents per share). Like for like EPS growth is expected to almost triple from its 2004 level (2004 like for like EPS: US$ 11 cents per share).
Andreas Andreades, Chief Executive of TEMENOS, stated:
“This is a deal of increased significance not only for TEMENOS but for the international banking software sector as a whole. It is a clear demonstration of the market entering a new cycle, whereby the world’s leading banks are actually acting on the need to replace their ageing legacy systems, which are often inadequate for the demands of 21st century banking. This high profile win further confirms TEMENOS’ leadership position in the higher value marketplace and underlines our ability to win a significant and increasing share of this market. TCB represents the winning application in the Top Tier core banking software replacement market. This deal confirms that TEMENOS’ strategy for the development of its business model in relation to Top Tier banks is well on target.”
The name of the bank is at this point in time confidential. A joint Bank/TEMENOS press release will follow over the next few weeks.
-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