Temenos Q3 2006
01 November 2006
Temenos reports outstanding results:
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Excellent quarter with revenues growing at 17% compared to Q3 2005
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Services revenues up 34% compared to Q3 2005 and return to positive margin at 3%
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T24 licence revenues up 39% for Q3 2006
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Largest ever tier one deal signed in October results in increased revenue and earnings outlook for 2006
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Outlook for 2007 reconfirms the commitment made by management in 2004
For immediate release:
Geneva, Switzerland, Wednesday 1st November 2006, TEMENOS Group AG (SWX: TEMN), a provider of integrated core banking software, today announced its third quarter 2006 financial results.
Highlights – Third Quarter 2006
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Excellent quarter with revenues growing at 17% compared to Q3 2005
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Services strategy gaining traction, with service revenues up 34% compared to Q3
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2005 and return to positive margin at 3%
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For the last 12 months:
o LTM Revenues up 29% (Like for like Revenues up 33%)
o LTM License Revenues up 60% (Like for like Licence Revenues up 69%)
o LTM Operating Costs up 26%
o LTM EBIT up 47%
o LTM EPS up 76%
o LTM Cash Flow from Operations up 6%
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In October 2006, we signed our largest deal ever with one of the largest global Tier One Banks. This deal will contribute to an exceptionally strong performance in Q4 2006, and a strong finish to the year, as well as providing much improved visibility into the next 3 years.
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TEMENOS increased its License Revenue outlook for 2006 from US$ 85-90 million to US$ 90-95 million. License Revenues are now expected to grow by 44% compared to 2005.
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Our outlook for 2006 Revenues is therefore revised to between US$ 210 million and US$ 215 million compared to our previous outlook of between US$ 205 million and US$ 210 million (2005: US$ 168.7 million) up 26% on prior year.
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Our 2006 earnings outlook is increased to US$ 49 cents per fully diluted share (2005: US$ 32 cents), a growth in excess of 50% from the prior year. This compares to our previous outlook of fully diluted EPS growth in excess of 40% on 2005.
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High contracted future revenues from this year’s large contracts, a strong pipeline for the next 12 months and consistent execution allow us to provide the outlook for 2007, reconfirming the commitment made in 2003.
Read the full Temenos Q3 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