Shares in Temenos plunged 20% in morning trading on news that the Swiss core banking vendor's CEO is quitting after just a year into the job for "personal reasons" while second quarter license revenue is down more than a third.
With banks still reluctant to spend in the face of global economic uncertainty, Temenos says it expects license revenues to be just $24 million, down 37% on the second quarter of 2011.
The poor numbers, which follow a similarly disappointing Q1, as well as "prevailing market conditions" have forced a tightening of revenue outlook range for the year. In 2012, the company now expects revenue growth of between minus five per cent and plus one per cent. The adjusted Ebit margin is unchanged at between 19% and 22%.
Guy Dubois, who joined the vendor from mobile communications firm Mach Group last July, is quitting for "personal reasons" effective immediately. Having taken up the role in tough market conditions, Dubois failed to halt the slide, while his big bid to boost the business through the acquisition of Misys fell apart as the British firm opted for rival suitor Vista Equity Partners.
Long-standing CFO David Arnott takes over, with Max Chuard filling his boots and ex-CEO and current chairman, Andreas Andreades becoming executive chairman.