Temenos follows suit on revenue guidance

(By Anthony Miller). The only thing really surprising about Switzerland-based banking software firm Temenos’ FY08 results (see here) was that it took quite so long for them to be hit by the downturn. It wasn’t until Q4 that customers started delaying signings, with the inevitable effect on the quarter’s revenues (down 2% yoy) and profits (down 17%). Like many other players, Temenos also declined to provide revenue guidance for the year, but set a target 2009 operating margin of 19-20%, some 4-5% higher than last year, more in line with 2007 margins.

There were a couple of points of ’local’ interest. First, the integration of Financial Objects (FO), which Temenos acquired in July last year, is now pretty much complete. Management says that they are ‘encouraged’ by FO customer interest in Temenos' flagship T24 banking package. Temenos also claim continued success replacing Misys systems, with average deal size up 13% yoy and 21 installations completed to date. I suspect their success rate will slow now that Misys appears to be well on the way to getting its act together under CEO Mike Lawrie, and Banking Head Guy Warren.