| Thu 9 Jan 2003, 17:42 | | GLOTEC - TEMENOS UPDATE |
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GLOBAL TECHNOLOGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/009809/06)
Share code GLT
ISIN ZAE000016820
("Glotec" or "the company")
TEMENOS announces new deals signed in Q4 2002
ILF signings up 34% for Q4 and 26% for 2002; Company reconfirms guidance for
2003
Geneva, Switzerland, 08 January 2003. TEMENOS Group AG (SWX: TEMN), a global
vendor of integrated banking software, today announced new deals signed during
the fourth quarter of 2002.
The value of Initial Licence Fees (ILF) for agreements signed during the fourth
quarter of 2002 amounted to USD 23.2 million, 34% higher than in the fourth
quarter of 2001. ILF signings for the six months to 31 December, 2002 were USD
34.4 million, 79% higher than during the comparative period in 2001, while ILF
signings for the full year 2002 amounted to USD 58.0 million, up 26% compared to
the previous year. 2002 ILF signings were the highest recorded in any fiscal
year in the history of TEMENOS.
Growth was particularly encouraging in the Asia-Pacific region, Russia, the
Middle East and Western Europe, while performance in the US and Africa remained
weak.
During the quarter, we closed deals with Bank Leumi in Switzerland, Friesland
Bank in Holland, Dunfermline Building Society in the United Kingdom, Saudi
Hollandi in Saudi Arabia, Jih Sun in Taiwan, IE Bank in the Philippines and a
number of credit unions in Ireland. We also completed a global licensing
agreement with Bank Leumi for the implementation of GLOBUS across its
international operations (not included in the ILF signings numbers above).
The increased level of new signings in 2002 resulted in a strongly positive
fourth quarter cash flow before indebtedness repayments.
"We are delighted with our performance during the fourth quarter which exceeded
our internal targets. This is of particular importance in the current business
environment, which continues to remain challenging in terms of spending amongst
our client and prospect base. Not only have we achieved record signings and
positive cashflows, but TEMENOS GLOBUS has also been reaffirmed as the leading
banking platform across the various banking sectors. We are gaining market
share," said George Koukis, Chairman and CEO, "and given our conservative
revenue recognition approach, we have built a solid base to deliver on our
revenue and profitability commitments for 2003."
2003 Guidance
Our strong performance during the second half of 2002 allows us to reconfirm our
guidance for full year 2003 revenues of approximately USD 130 million.
Anticipated 2003 revenues originating from business closed during 2002 represent
74% of our target revenues. The remaining target revenues are expected to be
generated from signings during the first half of the year, while signings in Q3
and Q4 of 2003 will not contribute significantly to 2003, as under our revenue
recognition policy the majority of associated revenues will be booked in later
periods.
Operating costs are forecast at approximately USD 120 million, while cash costs
are forecast to be not more than USD 104 million. Cash flows arising in 2003
from business that is already signed are projected to be approximately USD 112
million.
"On the back of improving conditions in Q3 2002, we are very excited to see this
improvement being sustained so strongly in Q4. Furthermore, the restructuring
undertaken in 2002 has yielded annualised savings for 2003 of more than USD 35
million over 2002. Taken together, this gives me the confidence in our ability
to deliver on our 2003 commitments," George Koukis stated.
Full year financial results for 2002 will be published on Tuesday 11 March 2003.
About TEMENOS
TEMENOS Group AG is a global leader in providing financial institutions with
integrated banking systems to support increased productivity and profitability
and that allow the institutions to respond quickly to changing market
conditions. TEMENOS has 33 offices in 20 countries and has installed over 500
systems since being founded in 1993. In June 2001, TEMENOS became a public
company, listed on the main segment of the SWX Swiss Exchange (TEMN).
Contact:
TEMENOS Group AG
David Arnott
CFO
darnott@temenos.com
+41 22 708 1417
Any statements in this press release about future expectations, plans and
prospects for the company including statements containing the words "believes",
anticipates", "plans", "expects", "will" and similar expressions, constitute
forward-looking statements. Actual results may differ materially from those
indicated by these forward-looking statements. In particular, the forward-
looking financial information provided by the company in this press release
represents the company`s estimates as of the date hereof. We anticipate that
subsequent events and developments will cause the company`s estimates to change.
However, while the company may elect to update this forward-looking financial
information at some point in the future, the company specifically disclaims any
obligation to do so. These forward-looking statements should not be relied upon
as representing the company`s estimates of its future financial performance as
of any date subsequent to the date hereof.
Johannesburg
09 January 2003
Company Secretary
Arcay Client Support (Pty) Ltd
(Registration number 1998/025284/07)
Sponsor To Global Technology Limited
Gensec Bank
Date: 09/01/2003 02:59:00 PM Produced by the JSE SENS Department
