As a result of these deals, TEMENOS’ outlook for 2006 License Revenues is raised to US$ 85-90 million from US$ 80-85 million (2005: US$ 62 million), up 41% compared to the prior year. Its outlook for 2006 Revenues is therefore revised to between US$ 205 million and US$ 210 million compared to its previous outlook of approximately US$ 200 million (2005: US$ 168.7 million), up 23% on the prior year. The company’s 2006 earnings outlook is correspondingly increased to at least US$ 45 cents per fully diluted share (2005 reported fully diluted EPS: US$ 32 cents per fully diluted share), a growth in excess of 40% from the prior year compared to its previous outlook of fully diluted EPS growth in excess of 30% on 2005.
Andreas Andreades, Chief Executive of TEMENOS, says:
“We have just completed an outstanding quarter exceeding our targets and previous forecasts. During Q2, we signed a major TEMENOS T24 deal with a global Tier 1 European bank and, in addition, we have signed a significant TEMENOS COREBANKING deal. This leaves us in an excellent position to deliver beyond our targets for the full year and I am delighted to be able to increase our outlook statement for a second time this year. Business momentum into the second half of the year continues strong.
As we continue to build our Tier 1 and Tier 2 business we improve our revenue and earnings visibility into future years given the multi-year earnings and revenue profiles of these relationships. TEMENOS is now in excellent shape with product superiority, global sales coverage, domain expertise and a strong management team. Our market is experiencing accelerating growth and it is time to capitalise on our strong competitive position. We now target organic revenue to grow at an accelerated rate for the next few years and complemented by a successful acquisition model.
I look forward to providing further information with our Q2 results announcement on the 26th July.”