Temenos reports strong first quarter; increases outlook for 2007

Temenos reports strong first quarter; increases outlook for 2007

Swiss banking systems vendor Temenos is reporting $60.3 million in revenues for the first quarter of 2007, up 64% on Q1 2006. As a result of this and recent acquisitions and distribution deals, it has raised its revenue outlook for 2007 from $270 million to $290 million.

Of this additional $20 million, Temenos says $5 million comes from improved market visibility and $15 million comes from its acquisition last month of German company ACTIS.BSP.

The company says that net profit for the quarter was $4.2 million, compared to $0.5 million for the same period last year. Licence revenues for the quarter grew at 110% and acceleration of maintenance revenues growth for the quarter was 26% compared to Q1 06. Service margin was breakeven for the quarter compared to -16% for Q1 2006.

Temenos won nine new name clients during the quarter, compared with six in Q1 2006. It claims this is the result of better territory coverage, consistent execution and higher win rates against competition.

While the company is unwilling to provide a breakdown of which products its new clients are buying, it says that revenues from T24 are up 53% while CoreBanking revenues are up 480% on Q1 2006.

The company says it will continue to supplement its organic growth model with acquisitions in order to achieve market leadership, and this will focus on transactions that strengthen its core business rather than any diversification.

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