Temenos, 15% owned by JSE-listed Global Technology Holdings, says it experienced a strong second quarter.
The global integrated banking software vendor, which is listed in Switzerland, says the second quarter of its financial year was marked by good revenue growth and strong cash flows.
Total revenue for the three months to 30 June was about 15% up from the previous quarter. Initial licence fee revenue was about 35% higher, while total licence revenue was up about 18%.
The group maintained the service margin at first-quarter levels, while earnings before interest and tax came in at break-even. Fully diluted earnings per share of 2c compares with a loss of 2c per share in the previous quarter.
Chairman and CEO George Koukis says licence and service revenues for the quarter grew strongly compared with the first quarter as a result of high initial licence fee signings since November last year.
"We continued to take market share from competitors, despite the difficult trading environment," he says. "We have continued to invest in our infrastructure, as well as our sales capability, to allow us to leverage our product investment over recent years.
"The operational improvements undertaken over the last 12 months have resulted in significant positive operating cash flows for the quarter and half year. This cash flow improvement follows the rationalisation of our cost base, the better management of our services business and higher deferred revenue."
Operating cash inflow of more than $6 million for the quarter bought the total cash inflow for the first six months to between $2.5 million and $3 million.
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