Misys Q1 revenue flat
29 September 2010 | 6173 views | 0
In its first quarter as a pure-play financial services business following the disposal of Allscriptes, Misys has reported flat revenues as growth in treasury and capital markets was offset by a slight decline in banking.
First quarter revenues were £72 million, flat from the same period the previous year on a constant currency basis. Order intake was up one per cent in what the firm says is traditionally its quietest reporting period.
Recurring revenues and cost control contributed to increased adjusted operating profit, although the company has not revealed the figures.
The treasury and capital markets unit saw Q1 revenues of £38 million, up £1 million, or four per cent, on a constant currency basis. Order intake was up 15%, reflecting particular success with the Summit trading system.
In contrast, revenues at the banking division were down five per cent to £33 million on a constant currency basis. Order intake was down 19% although Misys says that its new technology platform BankFusion is shifting the sales mix.
Having sold the majority of its stake in healthcare business Allscripts last month, the company has confirmed it will return the bulk of the £780 million proceeds to shareholders.
Mike Lawrie, chief executive, Misys, says: "As we move into the 'lead' phase of our turnaround strategy, we are seeing growing adoption of our new solutions from both existing and new customers. This, alongside continued recurring revenues and cost control, enabled Misys to increase adjusted operating profit over the prior year."
Shares in Misys were down 4.7 pence, or 1.6%, to 285.5 pence in morning trading.