Having been hit hard by the financial crisis, Swiss core banking vendor Temenos has shown tentative signs of recovery, posting rises in fourth quarter and full year operating profit despite slight falls in revenue.
For the fourth quarter, revenue was down three per cent to $118.6 million. Ebit was up 13% to $40.7 million although net earnings were down 13% to $38.7 million with EPS down from $0.73 to $0.58.
Full year revenue was down nine per cent, from $406.9 million in 2008 to $370.3 million last year. Ebit jumped 26% from $64 million to $80.2 million while margin was up 600bps to 22%. Net earnings were also up, five per cent to $68.5 million with earnings per share at $1.23, a rise of eight per cent. Cashflow from operations reached $118 million, 107% of Ebitda.
Importantly, the firm's core licensing business returned to growth after a tough 2008, up eight per cent for the year and 15% in both the third and fourth quarters.
Andreas Andreades, CEO, Temenos, says: "I'm delighted with this set of results. Overall spending on core banking systems declined in 2009, yet we were able to increase like for like net licences - our key KPI - by 8% and, coupled with good cost management, this enabled us to increase operating profits by 26%."
For 2010, including the contribution of recently acquired French vendor Viveo, Temenos expects revenue growth of between 18% and 25% and adjusted Ebit of 25%.
"Looking ahead to 2010, we find ourselves in extremely good shape to take advantage of the market opportunities, however significant these turn out to be. The Viveo acquisition - which adds further to market share - brings critical mass and exciting product extensions. Our partner programme helps to extend the indirect channel and the range of platforms we support as well as helping us to scale services delivery," says Andreades.
Separately, the firm has continued it policy of signing strategic implementation partners, inking a deal with Deloitte. The professional services firm will provide consulting services around T24 implementations in the UK and Switzerland, with plans to extend the agreement to Belgium, Canada, Ireland, Luxembourg, the Middle East, Portugal, South Africa and South East Asia and ultimately globally.