Temenos cuts 2024 outlook for second quarter in a row
Adds CEO quotes, cost cutting programs in paragraphs 1, 4-7
By Marleen Kaesebier and Isabel Demetz
Oct 23 (Reuters) -Swiss banking software firm Temenos TEMN.S lowered its full-year outlook on Wednesday for the second quarter in a row and said it launched a "company-wide efficiency program" that includes reorganizations at management level.
Releasing third-quarter results, Temenos said in a statement sales execution issues in the Middle East and Africa (MEA) led to a software licensing revenue slightly below a company compiled consensus expected at $101.5 million.
"We had clearly expected a significantly stronger software licence number than was delivered," CFO Takis Spiliopoulos said, adding "the issues in MEA were not linked to any change in customer behavior or change in the overall sales environment but were specific to sales execution."
The Geneva-based company now expects software licensing sales to be "flattish" in 2024, having previously expected the sales to grow 3% to 6% in 2024. This figure had already been cut from 7%-10% in July when the company cited impact from a short seller report.
"We have acted decisively to address the sales leadership issues in the region and conducted a detailed review of the Q4 '24 pipeline," CEO Jean-Pierre Brulard said in a statement.
Brulard, who joined the company in May after interim CEO Andreas Andreades came under pressure to step down from activist shareholder Petrus Advisers, added that Temenos had launched an efficiency program "designed to reduce management layers and organizational complexity."
Temenos is set to present a mid-term outlook and financial plan at its Capital Markets Day on Nov. 12.
Reporting by Marleen Kaesebier and Isabel Demetz in Gdansk; Editing by Christoph Steitz, David Evans and Emelia Sithole-Matarise
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