GENEVA, Switzerland – 14 January 2009 - Temenos (SWX: TEMN), the global provider of integrated core banking systems, today announced that after a preliminary analysis of its full year 2008 figures, it expects full year revenues in the range of USD400-420m, representing growth of between 21% and 27% on 2007, and full year EBIT in the range of between USD63-69m, an increase of between 1% and 10% compared to the prior year.
In terms of financial position at the year end, Temenos expects cashflow from operations in the range of USD50-55m and will close 2008 with around USD67m in cash on the balance sheet.
Full year numbers will be published on 18 February 2009 after the market close and dial-in details for the investor conference call to be held on the same day are below. Temenos management will update the market on its outlook for 2009 at this time.
Commenting on the preliminary estimates, CEO Andreas Andreades said, “Whilst we are pleased to announce growth in both revenue and EBIT in 2008, it is disappointing to report figures below our full year outlook. At the time of reporting Q3 results, our fifth quarter operating within the credit crunch, the key operating metrics – win rates, pipeline value and pipeline cover – all suggested that our full year outlook remained achievable. Furthermore, that pipeline conversion rates held up in Q3 despite the systemic shock that accompanied the collapse of Lehman Brothers in September also gave us confidence that conversion rates would remain high into Q4. However, the reality is that the difficult economic environment, which continued to worsen markedly throughout Q4, engendered ever greater levels of uncertainty among our customers and prospects and this eventually started to have a more profound effect on closure rates, with several customers choosing in December to defer new licence decisions until the new year. Customer win rates, however, remained consistent with prior quarters and we continued to execute strongly on existing projects. Operating cash was in line with the expected level, adjusting for the shortfall in licence revenue, and reflects continued solid execution and collection.
The cost-cutting that we initiated in the summer, together with some more action taken subsequently, mean that we begin 2009 with a USD33m lower annualised cost base. In addition, contracted incremental maintenance revenues arising from deals signed in 2008, which have negligible associated costs, will amount to between USD15m and USD18m in 2009. The combination of the two leaves us in an excellent position at an uncertain time. The fundamentals underpinning our growth in recent years are still intact, and we remain very confident about future prospects. ”
Conference call details
The conference call will be held at 17.00GMT/18.00CET on 18 February. Dial-in details are as follows:
From the UK: 44 (0)203 037 9105
From Germany: 0800 673 7932
From Switzerland: 0800 800 038
From the US: 1 866 966 5335
A transcript will be made available on the company website 24 hours after the call.
Prior to the call, the presentation slides will be made available on our website, http://www.temenos.com/Investor-Relations/New-Presentations/
Founded in 1993 and listed on the Swiss Stock Exchange (SWX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 44 offices worldwide, Temenos serves over 600 customers in more than 120 countries.
Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations.
Temenos annually invests around 20% in R&D, significantly more than its peers, into a single fully packaged upgradeable software release, which ensures all Temenos customers benefit from modern technology and support indefinitely.
Temenos is top of the IBS Sales League Table 2008, winner of the Best Core Banking Product category in Banking Technology magazine’s Readers’ Choice Awards 2008, winner of the Financial-i Leaders in Innovation award for the most innovative core banking systems solution 2008 and is listed in the American Banker top 100 FinTech companies. For more information please visit www.temenos.com
For more information, contact:
Investor / Analyst queries -
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Press queries -
Tel: +44 (0) 20 7710 8910
Any statements in this press release about future expectations, plans and prospects for the company andstatements containing the words “believes”, anticipates”, “plans”, “expects”, “will” and similar expressions,constitute forward-looking statements. Actual results may differ materially from those indicated by these forward looking statements as a result of various factors. In particular, the forward-looking financial information provided by the company in this press release represents the company’s estimates as today’s date. We anticipate that subsequent events and developments will cause the company’s estimates to change. However, while the company may elect to update this forward-looking financial information at some point in the future, the company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the company’s estimates of its future financial performance as of any date subsequent to today’s date.