Shares in Swiss core banking vendor Temenos have slipped 18 percent after the vendor revised guidance and warned of disappointing Q4 sales.
In a trading update, Temenos says it expects to report software licensing revenue of $136m to $143m for the year, versus the previous implied guidance range of $151m to $158m. Non-IFRS revenue is expected to come in at $466m to $476m, versus forecasts of between $489m to $512m.
Commenting on the results, Temenos CEO David Arnott says: “The Q4 licensing figure was very disappointing and owed to weak sales execution predominantly in the Asia Pacific region, where sales contracted in the year."
Arnott insists there were no major lost deals in the quarter.
"We continue to see strong and growing levels of demand, especially for core banking replacement and digital channels," he says. "Looking into 2015, given the strong progress made on large deals and the fact that we did not lose any significant deals in Q4, we expect licence revenue growth of at least 10%"
Markets were unimpressed, cutting the share price from yesterday's close of CHF36.9 to CHF28.10. By mid-day, the price had recovered slightly to stand at CHF30.15, marking an 18.29% slump on the overnight price.