Temenos full year signings ahead of expectations
12 January 2006 | 6289 views | 0
Swiss banking systems vendor Temenos is reporting fourth quarter contract signings worth $28m, up 47% on the previous year, bringing the value of initial licence fees (ILF) for new contracts during the full year to $91m, also an increase of 47%.
The ILF contract signings for full year 2005 exceeded the vendor's prior outlook of $80m - $85m.
During the year the vendor signed two deals for its CoreBanking platform which amounted to approximately $26m, up 117% on $12m for the prior year.
One of these contracts is with HSBC, which is teaming with the vendor to develop a new international banking system based on a Java version of the CoreBanking platform. Details of the second CoreBanking contract have not been disclosed.
Full-year signings for its T24 technology were up 30% to $65 million, compared to $51 million in 2004.
The vendor says 42% of 2005 signings were made with tier one and tier two financial institutions. Around 70% of signings were with retail and universal banks in line with the vendor's strategy to focus on the growing profitability in the retail banking segment.
Andreas Andreades, CEO, Temenos, says the results demonstrate "the strength of our business model, management and product".
"This places Temenos very well for the future as we are entering 2006 with increased momentum, confidence and ability to execute on our plans," he adds.
The company will report its full results for 2005 on 22 February.
Temenos shares dipped slightly following the update, but the market generally appears pleased with the vendor's overall progress. The stock is up 10% on the week and has climbed 43% over the year.