Temenos Ag · SIX:TEMN
Temenos — Q3 2002 Earnings Presentation
17 slides from Temenos's earnings presentation, Nov 5, 2002
Slide 1: Business Review & Financial Results, Quarter ended September 30, 2002
Business Review & Financial Results Quarter ended September 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 Overview George Koukis Chairman and CEO Business Review Andreas Andreades Deputy CEO Financial results David Arnott CFO Q&A Management Team 3
Slide 4: Business Review
Business Review Andreas Andreades Deputy CEO
Slide 5: Business Update
Business Update We closed USD 11.2 million in ILF signings during the quarter, reversing our year to date trend to a positive 20% compared to prior year, despite challenging market conditions in Europe and the US. We see confirmation of a turnaround in Asia and regular deal flow from Russia and
Slide 6: Business Update
Business Update We see weakness in private Banking and Wealth Management. Spending is concentrated around retail and wholesale banking. We also see banks with heavy exposure to brokerage/investment restructuring and delaying spending decisions. We are cautious about the balance of the year and 2
Slide 7: Financial results
Financial results David Arnott CFO
Slide 8: Financial highlights
Financial highlights Revenue Total revenues: US$26.5m, down 26% compared to same period last year Licencing revenues: US$13.8m, down 31% compared to same period last year Services revenues: US$12.7m, down 19% compared to same period last year Operating costs Operating costs at US$44.7m, up 3
Slide 9: Profit and Loss
Profit and Loss US$ million Quarter ended September 30 Nine months ended September 30 % % 2002 2001 Growth 2002 2001 Growth Revenues Licensing 13.8 20.1 (31%) 49.5 63.7 (22%) Services 12.7 15.7 (19%) 43.7 42.5 3% Total revenues 26.5 35.8 (26%) 93.2 106.2 (12%) Expenses Software development 11.0 9.9
Slide 10: Earnings per share
Earnings per share Quarter ended September 30 Nine months ended September 30 2002 2001 2002 2001 2000 Net income (US$ million) (16.6) 1.8 (16.1) 6.8 8.9 Shares outstanding (m) 51.9 51.7 51.9 43.8 53.6 Diluted shares outstanding (m) 57.5 58.8 57.3 49.3 58.4 Basic EPS (0.32) 0.04 (0.31) 0.15 0.16 (US$
Slide 11: Cash flow
Cash flow Quarter ended September 30 Nine months ended September 30 2002 2001 2002 2001 Cash at beginning of period 53.9 124.9 65.3 1.4 Operating cash flow (12.9) (5.9) (13.2) (2.0) Capital spending, incl. Acquisitions (2.8) (15.8) (14.3) (19.0) Other, incl. Financing (0.1) (31.8) 0.3 91.0 Cash at e
Slide 12: Balance sheet
Balance sheet US$ million Sept 2002 June 2002 Sept 2001 DSOs (Days) 65 60 60 Accrued revenue 37.4 37.5 29.7 Less: Deferred revenue (19.9) (18.4) (12.2) Net 17.5 19.1 17.5 Cash 38.1 53.9 71.4 Unutilised facility 17.0 17.0 17.0 Unutilisable Term Loan (12.5) (10.0) (30.0) Available cash 42.6 60.9 58.4
Slide 13: ILF signings
ILF signings ILF signings US$11.2 million vs US$1.9 million for the same period last year ILF signings for the nine month period to September 30th 2002, were US$ 34.8 against US$ 28.9 million for the comparative period last year ie 20% up. Cumulative ILF signings 46.2 50 40 34.8 27 28.9 (US$ m.)
Slide 14: Financial guidance
Financial guidance 2002 A further restructuring charge will be taken during Q4 as we continue to rightsize our operations The positive signings trend will progressively flow into cash and earnings over the next few months with Q4 expected to be a cash flow positive quarter 2003 Our 2003 assump
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