Temenos Ag · SIX:TEMN
Temenos — Q2 2002 Earnings Presentation
17 slides from Temenos's earnings presentation, Sep 9, 2002
Slide 1: Financial Results & Business Review, Quarter ended June 30, 2002
Financial Results & Business Review Quarter ended June 30, 2002
Slide 2: Disclaimer
DISCLAIMER Any remarks that we may make about future expectations, plans and prospects for the company constitute forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors. In particular, the forward-loo
Slide 3: Presentation overview
Presentation overview Agenda Speaker Position Financial results David Arnott CFO Business review Andreas Andreades Deputy CEO 3
Slide 4: Financial results
Financial results David Arnott CFO
Slide 5: Financial highlights
Financial highlights Revenue Total revenues: US$35.6m, down 9% compared to same period last year, our strongest quarter ever Licencing revenues: US$19.4m, down 25% compared to same period last year Services revenues: US$16.2m, up 23% compared to same period last year Operating costs Operatin
Slide 6: Profit and Loss
Profit and Loss US$ million Quarter ended: Jun 30 Mar 31 Jun 30 % % 2002 2002 Growth 2001 Growth Revenues Licensing 19.4 16.4 18% 26.0 (25%) Services 16.2 14.7 10% 13.2 23% Total revenues 35.6 31.1 14% 39.2 (9%) Expenses Software development 7.3 6.6 11% 8.5 (14%) Services 13.7 12.4 11% 12.9 7% Sales
Slide 7: ILF signings
ILF signings ILF signings US$11.5 million vs US$14.8 million for the same period last year Quarter Amount Q1 2001 12.2 Q2 2001 14.8 Q3 2001 1.9 Q4 2001 17.3 Q1 2002 12.1 Q2 2002 11.5 Backlog as of July 31, 2002 amounted to US$38.3 million (Mar 31, 2002: US$49.0 million) due to 2 project postpone
Slide 8: Earnings per share
Earnings per share Quarter ended June 30 2002 2001 Net income (US$ million) 1.4 4.3 Shares outstanding (m) 51.9 40.3 Diluted shares outstanding (m) 57.6 46.1 Basic EPS 0.03 0.11 (US$ per share) EPS (fully diluted) 0.02 0.09 (US$ per share) 8
Slide 9: Cash flow
Cash flow US$ million Quarter ended June 30 2002 2001 Cash at beginning of period 53.1 2.6 Operating cash flow 4.1 1.7 Capital spending, incl. Acquisitions (3.9) (0.9) Other, incl. Financing 0.6 121.5 Cash at end of period 53.9 124.9 9
Slide 10: Balance sheet
Balance sheet US$ million Jun 2002 Mar 2002 Jun 2001 DSOs (Days) 60 70 61 Accrued revenue 37.5 34.1 25.4 Less: Deferred revenue (18.4) (16.2) (18.5) Net 19.1 17.9 6.9 Cash 53.9 53.1 124.9 Unutilised facility 17.0 17.0 17.0 Unutilisable Term Loan (5.0) (5.0) (60.0) Available cash 65.9 65.1 81.9 10
Slide 11: Business review
Business review Andreas Andreades Deputy CEO
Slide 12: Business review
Business review No change in market conditions since results pre-announcement on 24th July 2002 We continue to operate under challenging market conditions with deal and project delays Hopes for 2H 2002 recovery evaporated Tier 1 institutions continue to restructure and have not released CAPE
Slide 13: Operations management; Acquisitions
Operations management We have completed our plan for the rollout of our sales organisation and office infrastructure We operate under a hiring freeze while at the same time we are evaluating and restructuring unproductive and non-core units. This is expected to result in a net headcount reductio
Slide 14: PKTech acquisition
PKTech acquisition Offer made to Asian distributor to buy GLOBUS business for US$3.5 million Transaction relates to the transfer of GLOBUS consultants, maintenance stream from existing customers, and the cancellation of distribution rights Staggered cash consideration is to be preceded by cash i
Slide 15: Additional slides
~ TEMENOS Additional slides
Slide 16: Revenue recognition - a case study
Revenue recognition-a case study December 30th : Client signs US$10 licence contract. US$5m payable on January 30th, US$5m payable on completion of project. Implementation will take place from March 1 to August 30 of year after signing On signing: Backlog = US$10m. No accounting entries On January 3
Slide 17: Revenue recognition - a case study
Revenue recognition - a case study Backlog Revenue Cash Deferred Accrued On Signing 10 0 0 0 0 On Upfront Pmnt 50% 10 0 5 5 0 Project: 20% complete 8 2 5 3 0 50% complete 5 5 5 0 0 90% complete 5 0 4 9 1 Live date 0 10 10 0 0 17