Misys plc (LSE: MSY), the global application software and services company, publishes its Interim Management Statement for the third quarter of its 2009/10 financial year, ended 28 February 2010.
Financial information referred to in the statement is unaudited. All comparisons to the prior year are on a pro-forma constant currency basis1 unless otherwise stated.
Financial and Operational Highlights (3rd quarter)
· Order intake2 up 8% (year to date: 9%).
· Revenue up 7% (year to date: 1%).
· Adjusted operating profit3 up 18% (year to date: 13%).
· Recurring revenues were up 7% and represented 60% of total revenue
· Net debt reduced to £59 million from £120 million at the start of the quarter due to strong cash conversion
· 4 new orders in the period from bank customers for our next generation BankFusion solutions.
· Further adoption of Electronic Health Records by large physician groups, notably Catholic Health Initiatives.
· Expectations for the 2nd half re-affirmed: 5-8% revenue growth on a constant currency basis and 19-21% adjusted operating profit margin.
Mike Lawrie, Chief Executive, Misys plc comments "As expected, we have seen improving revenue momentum in the third quarter with accelerated growth in Allscripts and TCM. Our strong, reliable business model and effective financial discipline are enabling us to continue to increase profits significantly, with 18% growth in adjusted operating profit for the third quarter, and 13% for the year to date. We have continued to introduce new solutions and I am pleased with the progress we are making towards leadership in our markets.
Orders across the Group have increased by 9% in the year so far, with particular strength at Allscripts as physicians in the US adopt Electronic Health Records. Allscripts revenue grew 16% for the third quarter as we continued to win large community-based deals and we successfully implemented orders won in previous quarters.
Treasury & Capital Markets continued its recovery with growth led by maintenance and services, while it continued to win new name customers for its solution win new name customers for its solutions.
solution win new name customers for its solutions.
In Banking, the market remains difficult for new business but our recurring revenue base continues to grow. We see significant improvements in sales pipelines, most notably in BankFusion, for which we signed 4 new customers in the period.
We are pleased with our performance in the third quarter and believe that our year-to-date results position us to meet the full year targets that we communicated in January 2010."