Temenos reports sharp drop in fourth quarter profits

Temenos reports sharp drop in fourth quarter profits

Banking software vendor Temenos is reporting a sharp drop in operating profit for the final quarter of 2001, down to $29,000 compared to $4.8 million for the same period last year.

The vendor managed to maintain a full year operating profit level in line with the previous year of $25.6 million.

George Koukis, chairman and CEO, comments: "2001 was a challenging year for Temenos. We emerged from nine months of intense corporate activity including our Initial Public Offering in June, to face what was one of the most challenging and unpredictable periods in recent history."

Revenues for the quarter were $34.7 million, up 9% compared to the same period last year, bringing revenue for the fiscal year ended December 31,2001 to $140.9 million, an increase of 48% compared to the previous fiscal year. Licensing revenues for the quarter were $16.0 million, down 19% compared to the same period last year while licensing revenues for the year were $79.7 million, up 35% compared to the prior year. Services revenues for the quarter were $18.6 million, up 54% compared to the same period last year and services revenues for the year were $61.2 million, up 68% compared to last year.

Andreas Andreades, deputy CEO, says: "Our licensing revenues, although higher than our prior guidance, remained depressed as we are absorbing the impact of the recent slowdown in new business."

Temenos did, however, bag four deals with Tier 1 banking institutions, Rabobank, Schroders, Fortis and Mellon during the quarter, and has decided to open a new Russian office in Moscow later this month.

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