Temenos exceeded its target of new signings of $16m during the second quarter, bringing the first half of 2004 ahead of its initial target by $6.9m (27.6%) and ahead of last year by $9.7m or 43.7%.

During the quarter the vendor signed new license contracts with Vietnam's Sacombank, United Nations Federal Credit Union (UNFCU) Raiffeisen Krekova Bana in Slovenia, Bank of Botswana and the Joint Stock Commercial Bank for Social Development in Urkraine.

In the 12 months to June 30th 2004, Temenos' ILF signings amounted to $60.7m, the highest level ever, compared to $58.5m on March 31th 2004 and $51m on December 31st 2003.

The vendor says it experienced an increase in contracts from the retail banking sector, totalling 45% of Q2 signings and bringing it to 57% for the first half of the year compared to 13% for the same period in 2003.

Temenos says it also reached or exceeded its target in Europe and in CIS region. In the first half of the year all regions are either ahead or on target. ILF signings comprised 92% new licenses and eight per cent upgrade licences to existing customers. In 2004, the firm has set a target of 10% of its signings to be derived from upgrade licenses to existing customers.

Andreas Andreades, CEO, Temenos, says: "We are entering the second half ahead of our ILF signings targets. This, together with the strength of our products and pipeline gives me the confidence that we will reach our full year ILF target of $68m and deliver on our revised EBITDA guidance of approximately $32- 37m for the year."

The company is maintaining its Q3 ILF target of $11m, which means to reach the full year ILF target of $68m it must achieve Q4 2004 signings of $25.1m instead of $32m as initially targeted.