Temenos Q1 2006 Results

03 May 2006

Temenos reports outstanding results:

• Excellent start to 2006 with strong business momentum
• Increase in 2006 license revenue outlook
• Increase in medium term T24 license revenue growth
• Announcement of strategic repositioning of services business

Geneva, Switzerland, Wednesday 3rd May 2006, TEMENOS Group AG (SWX: TEMN), a provider of integrated core banking software, today announced its first quarter 2006 financial results.

Highlights – First Quarter 2006


• Excellent start to the year with strong business momentum
• License Revenues exceeding our target at US$ 11.1 million, up 16% compared to Q1 2005. Like for like License Revenues up 41% compared to Q1 2005. Excellent cost management with costs growing by 6%, and cash flow of US$ 2.7 million compared to US$ (7.6) million in Q1 2005
• Since the end of the quarter we have won and are concluding contracts for a number of large and strategic T24 and TCB deals with Tier 1 and Tier 2 banks
•  Business model on target – last 12 months (“LTM”) comparisons favourable and
  point to excellent top line and Licence Revenue growth, cost leverage and cash
  flow generation:
  
  o LTM Revenues up 15% (Like for like Revenues up 20%)
  o LTM License Revenues up 20% (Like for like Licence Revenues up 38%)
  o LTM Expenses up 6%
  o LTM EPS up 106%
  o LTM Cash Flow form Operations up 45%
  
  
• TEMENOS announces strategic repositioning of its Services business to accelerate services revenue growth and improve margin
• TEMENOS to increase its License Revenue outlook for 2006 from US$ 75-80 million to US$ 80-85 million. License Revenues are now expected to grow by 28% compared to 2005
• TEMENOS to increase its medium term T24 growth target from 10% to 20% 
  
  

Read the full Temenos Q1 2006 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