Temenos shines post-IPO, bucks downturn

Temenos shines post-IPO, bucks downturn

Wholesale banking systems vendor Temenos is reporting strong second quarter and year-on-year results in its first trading statement since floating on the SWX Swiss Exchange.

Revenues for the quarter to end-June rose 68% to $39.2 million compared to the prior year, bringing the 12-month revenue total to $125.2 million, a rise of 80% over the previous year. EPS for the year rose to $0.36 per diluted share compared to $0.15 in the prior year.

Licensing revenue grew by 72% for the quarter in line with the 12 month growth of 74%, while revenue from services grew by 60% for the quarter and 92% for the 12 month period. Operating profit grew by 86% for the quarter to $8.7 million up from $ 4.7 million for the same period last year. Operating profit for the 12 month period grew by 110% to $22.1 million, up from $10.5 million for the prior year.

The growth is attributed to new accounts and the roll out of Temenos' Globus product to multiple sites internationally by existing customers. The revenue for the quarter was characterised by strong sales of additional Globus modules and additional users to existing clients. New client wins included Merrill Lynch Japan and Bank Julius Baer New York.

Employee numbers grew by 134 in the quarter just ended to 1,074, compared to 597 as of June 30, 2000. The increase occurred across all areas of the company with particular emphasis in consultancy services, R&D, and sales.

Pointing to an increase in annual R&D spending to 19.2% from 15.3% for the prior year, George Koukis, Temenos chairman and CEO comments: "We have delivered in excess of 50-man years of new functionality into the G12 release of Globus. The increase in our development capacity will allow us to deliver significant additional functionality into our product range over the next year."

He points in particular to efforts to adapt Globus to run on multiple operating platforms and databases, including the IBM Z Series (S/390) with DB2, jBASE in three banks and an Oracle implementation at a major London based bank. The IBM I series (AS/400) release of the system is expected to available during the quarter ending December 2001.

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