Misys banking division continues to feel the pain
30 September 2009 | 7777 views | 0
Misys has reported an eight per cent slide in revenues and 14% fall-off in order intake from its banking division, in an interim management statement for the three months ending September 2009.
Despite the woeful banking performance, the British vendor posted a 15% increase in like-for-like operating profit for the quarter thanks to a strong performance from its healthcare operations and signs of recovery in its treasury and capital markets business. Order intake across the group rose by 20%, although group revenues slipped two per cent after stripping out returns from the AllScripts merger process and positive currency effects.
In the banking division, like-for-like revenue was down eight per cent to £34 million from £37 million in the year-ago period. Total order intake in the unit slipped by 14% to £13 million from £15 million a year earlier.
Misys chief Mike Lawrie, attributed the drop-off to a difficult market and seasonally slow quarter.
Better results were seen in treasury and capital markets, he pointed out, "with an increase in order intake and improving pipeline for solutions such as Opics Plus and particularly Loan IQ where we see new markets opening up".
City analysts, who have been talking up the prospect of a break-up of the group, expressed concern at the continued poor performance in banking. In a note to clients, Piper Jaffray, commented: "Our concerns on visibility in the division remain, given poor order intake ratios in the latter part of FY09 and no recovery evident in Q1 2010."