TEMENOS, a global vendor of integrated banking software that supports international banking, announced it has closed calendar year 2001 with a strong quarter and remains optimistic about the future. Initial License Fee signings for the quarter ended 31 December 2001 increased by more than 50% over the same quarter last year.
“As the quarter progressed, we saw an increasing willingness of prospects to commit to purchases,” said Andreas Andreades, Deputy CEO of TEMENOS. “The drivers for reducing costs and improving efficiencies continue to be very strong in the global marketplace today despite the continuing weak economic environment. Many institutions are taking advantage of replacing out-dated legacy systems with a modern banking platform like TEMENOS GLOBUS(TM) (GLOBUS) thereby reducing costs and reliance on manual processing. We believe this trend will continue and are poised to take advantage of it with our industry-leading products and services.”
“During the fourth quarter of 2001, TEMENOS closed a considerable amount of business from both new and existing clients. The quality of signings was particularly pleasing. Contract wins with Tier 1 institutions, as well as client wins in new geographies, are the cornerstone of our “land and expand” based business model, as we seek to grow and win increased market share,” said Andreades.
Four new Tier 1 institutions were added:
— Schroders will be implementing GLOBUS for their Private Banking operations in London and Zurich,
— Mellon Financial Corporation have purchased GLOBUS to support international cash management operations in Boston, London, and Toronto, the first phase of the project will see GLOBUS delivered and running live within a six month timeframe,
— MeesPierson (the Private Bankers of the Fortis Group) will be implementing GLOBUS for their private banking operations,
— A major bank will be installing GLOBUS in their Australian and New Zealand operations to replace older legacy systems.
This brings the total number of contracts signed with Tier 1 institutions during 2001 to 6, compared to a target of 3 to 4. This means that today TEMENOS GLOBUS has been selected by 21 of the world’s top 100 banks.
In addition, significant contracts were signed with a variety of new clients including Close Brothers a premier UK private bank. Contracts were also signed in new geographies including Vietnam, New Zealand, Tunisia and Kosovo.
Importantly, additional business was committed by existing clients. Credit Suisse committed to the implementation of GLOBUS in their Frankfurt operations, one of its largest sites outside Switzerland. Raiffeisen Zentralbank, EFG and Al Rajhi Banking and Investments all purchased the GLOBUS Internet Banking module that was launched in July 2001.
Our Asset Management Module, which was released in December 2001, gained rapid acceptance and was instrumental in securing an initial contract with Schroders and an upgrade from Credit Suisse.
“We are particularly pleased with the size of the sales pipeline throughout the world and our ability to convert prospects to clients,” said Phillip Stanning, Global Sales Director of TEMENOS. “Previously deferred projects and strategic investments are now being approved. Despite the restructuring that is continuing in many institutions we are confident that we will be able to realize significant opportunities. The pipeline of potential business continued to grow during this quarter”.
TEMENOS plans to release full year results on Tuesday, March 12th.
TEMENOS is a global leader in providing financial institutions with integrated banking systems that increase productivity, profitability, and allow them to respond to changing market conditions. The company’s solutions are utilised in a variety of segments including retail and wholesale banking as well as for treasury and accounting functions. TEMENOS customers include Deutsche Bank (GER: DBK), Barclays Bank (LONDON: BARC) and Merrill Lynch (NYSE: MER). TEMENOS has 40 offices in 28 countries and has installed over 500 systems since its founding in 1993. The company had revenues of $106.4 Million in the nine months ending 30 September, 2001. In June, 2001 TEMENOS became a public company, listed on the Swiss Stock Exchange (TEMN).Details