UK banking systems vendor Misys says its business has not been hit by this year's credit crisis and that first half revenue increased year-on-year across all divisions, beating its own internal targets.
Last month UBS analysts downgraded Misys from 'neutral' to 'sell' following concerns that financial firms are reviewing IT budgets, and other forecasts for a 20% decline in treasury and capital markets licence sales in the first half of 2008.
But in a trading update for the six months to 30 November Misys CEO Mike Lawrie says the global credit market issues "have not materially impacted our business" so far.
"Misys' business model and global footprint have helped to insulate the company so far from turbulence in the macroeconomic climate," says the statement.
The vendor says its banking unit has been protected from the effects of the credit crunch due to growing recurring revenue streams and the customer base - the majority of the banking business comes from tier three and four banks in Asia, Africa and the Middle East.
Furthermore, Misys says more than half of treasury and capital markets revenue is not dependent on new licence sales. This, coupled with a "strong footprint" in emerging markets, particularly Asia, "helps to mitigate the effects that some competitors may face", says the vendor.
But Misys does say that ILF (initial licence fee) order intake at its treasury and capital markets unit was "below our internal target", mainly due to "sales execution issues".
Overall the firm expects revenue growth at both its banking and treasury and capital markets division to be in the "mid-single-digit percentage range" for the first half, as compared to the same period last year, while its healthcare business is expected to report "slight growth".
Despite the upbeat statement, Misys shares were trading down 4.38 pence at 194.00 pence in lunchtime trading.