Chordiant battered by gloomy outlook; S1 rallies on Q4 profit

Chordiant battered by gloomy outlook; S1 rallies on Q4 profit

Shares in Chordiant Software continued to fall last week on the back of an earlier outlook statement which warned of weakening demand for its technology from banks in North America. Meanwhile shares in S1 Corporation surged after the Atlanta-based vendor posted a fourth quarter profit, making it the top performer in the Finextra50 index.

The Finextra50 closed down last week to 86.04.

Chordiant Software was the top faller in the Finextra50 for the second week in a row after the company's stock failed to recover from its earlier outlook warning and fell 13.21% to close at $5.78 on Friday.

In February Chordiant, which supplies customer management software, said that since the beginning of the year it has seen "macro economic conditions deteriorate, specifically in the North American financial services sector". Last week the firm reported a partnership deal with India's HCL Technologies but this wasn't enough to jump start its shares.

Chordiant has now fallen more than any other firm - 57.72% - since the Finextra50 was benchmarked last May.

UK financial software outfit Gresham Computing was also a major loser in the index last week and saw its stock slip 11.91% to close the week at 61 pence. The shares rose briefly during the week after the vendor reported a "seven figure" contract for a treasury management system with an un-named customer in Australia.

UK banking systems vendor Misys also saw its stock fall, despite reporting contracts with China Everbright Bank and Indonesia's PT Bank Tabungan Pensiunan Nasional. Misys stock fell 7.14% to close at 149.5 pence on Friday.

Other companies to see significant falls last week include:

The Misys share price fall came at the same time as rival vendor Temenos posted a strong set of fourth quarter and full year results.

The Swiss vendor was one of the major risers in the Finextra50 last week after it reported a hefty 88% rise net income to US$64.7 million for the full year 2007 - compared to $34.4 million in 2006 - and said its business had not experienced any slowdown following the credit crunch.

Temenos also raised its guidance for 2008 and says it now expects revenues of $400 million in the year, up 21% on 2007 and EBIT of $85 million, 36% up on last year. The vendor closed the week 6.50% up at SFr26.20.

However it was Atlanta-based front office vendor S1 Corporation that was the star performer in the Finextra50 last week, with the stock rising 18.39% to close at $7.08 on Friday.

S1 stock soared mid-week after the front office vendor said it swung to a profit of $6.4 million for the fourth quarter, compared to a loss of $12.9 million in the year ago period.

S1's full year revenue for 2007 increased seven percent to $204.9 million from $192.3 million in 2006. Net income for the year came in at 19.4 million, compared to 17.9 million for full year 2006.

In a statement Johann Dreyer, chief executive officer of S1, said the company had become "a profitable organisation that is well positioned for the future" and as a result, the group is now targeting 2008 revenues of $216 million to $220 million and GAAP earnings of $0.37 to $0.40 per share.

Shares in ACI Worldwide also gained during last week and closed up 6.64% at $17.66 on Friday. Earlier in the week it was reported that ACI president and chief executive Philip Heasley had bought 20,000 shares of common stock.

Heasley is reported to have bought the ACI shares for $16.24 to $16.90 apiece.

Other companies to rise last week include:

Index comparison


Methodology
More information on the Finextra50 Financial Technology Index methodology and constituent stocks

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