During the fourth quarter, new ILF contract signings amounted to US$ 28 million, compared to US$ 19 million for the previous year, up 47%. This brings the value of Initial Licence Fees (ILF) for new contracts signed during the full year of 2005 to US$ 91 million, an increase of 47% compared to the same period last year.
During the year, TEMENOS signed two TEMENOS CoreBanking deals for a value of approximately US$ 26 million compared to US$ 12 million for the prior year (+117%). In August 2005, TEMENOS had already disclosed its TEMENOS CoreBanking win with HSBC.
TEMENOS T24â¢ grew at approximately 30% compared to last year, reaching US$ 65 million compared to US$ 51 million for 2004, far exceeding the companyâs targets and prior medium term growth rate of 10% per annum. TEMENOS T24 is now growing at a compound aggregate growth rate of 20% in the last 3 years.
During 2005, TEMENOS continued to attract top tier clients as a result of superior products in the form of TEMENOS T24 and TEMENOS CoreBanking. More than 42% of the companyâs signings in 2005 were made with tier one and tier two financial institutions, compared with around 40% for 2004. In 2005 approximately 70% of signings were with retail and universal banks in line with TEMENOSâ strategy to focus on the growing profitability of the retail banking segment.
The growth in signings for 2005 is driven by strong performance in the Americas, where TEMENOS more than tripled signings compared to last year, and in EMEA where signings grew at close to 40%. In Asia Pacific, the companyâs TEMENOS T24 business more than doubled compared to last year. TEMENOSâ performance the last two years has resulted in a more balanced geographic distribution of its ILF signings with each of the Americas and Asia Pacific representing 17% of the mix. In 2004 they represented 6% and 25% respectively, and EMEA the balance at 65%.
Andreas Andreades, CEO, TEMENOS says: "I am obviously very excited with our performance. ILF signings, a key performance indicator for our business, has grown by 47% compared to 2004 which itself was up 22% on the previous year. So over the last two years we have grown by almost 80%. This is a unique performance in our industry and demonstrates the strength of our business model, management and product superiority. TEMENOS T24 has now consistently exceeded our expectations for the last two years, while TEMENOS CoreBanking continues to more than double every 12 months. Our performance was impressive across all regions and segments of the market and our competitive position has actually strengthened during the last few months of the year as evidenced by our results.
This places TEMENOS very well for the future as we are entering 2006 with increased momentum, confidence and ability to execute on our plans. Pipeline evolution and deal execution continues to be strong into the first few days of 2006."
TEMENOS will announce its 2005 audited results and formal outlook statement for 2006 on the 22nd February 2005. A conference call will take place on Wednesday the 22nd February 2005 at 2.30pm CET to present its Audited Fourth Quarter and Full Year 2005 Results.