Fast-growing banking systems vendor Temenos is revising revenue forecasts downwards following a weaker than expected September for new contracts.
The company's revenues are still expected to grow at the rate of 50% to 55% compared to the same period last year. However, the operating margin for the quarter is expected to be depressed due to a lower than anticipated ratio of license to service revenues. The company says that implementation of recently signed licenses is progressing according to plan and that it continues to benefit from a sizable contracts backlog.
Temenos says it has taken an "aggressive stance" on costs to protect margins. The company says it will transfer certain back office development and client support operations to its technology centre in Chennai, India more quickly than originally planned.
"Uncertainty has been significantly increased following the events of September 11, 2001" says George Koukis, chairman and CEO. "We believe that taking the corrective measures announced today will allow us to better manage the currently uncertain business environment."