Swiss banking software maker Temenos has pulled its guidance after revenues declined in the first quarter due to the coronavirus lockdown.
Temenos generated revenue of $193.7 million in the first quarter of 2020, 5 percent less than a year ago, the Geneva-based company said in a statement on Tuesday. Operating profit declined by a fifth to $39.4 million. Earnings per share amounted to $0.39 compared with $0.52.
The company plans to stick to the dividend it promised to pay earlier this year. The 0.85 francs per share dividend is subject to approval by the annual general meeting slated for May 20,2020.
Asia and Europe Go First
The Swiss company suffered a significant negative impact on licenses in the first quarter due to the pandemic, with a decline in signings particularly acute in Asia and Europe. The license sales dropped by half to $33.6 million, the company said.
Temenos said that its business was resilient, despite the drop in sales: «We provide mission-critical software to banks and this crisis has highlighted the need for sophisticated digital banking platforms and modern core banking software which can be run remotely,» Temenos CEO Max Chuard said.
Voluntary Salary Cut
Still, with the decline in revenue, the company adjusted the targets for this year. The growth target for sales was revised to 13 percent from a previous range of 16 to 20 percent, while operating profit should add some 7 percent.
In face of the difficulties, CEO Chuard and Chairman Andreas Andreades announced that they will take 50 percent salary cut. The executive committee will take a voluntary 25 percent salary cut for the remainder of 2020.
