Temenos Sets To Carry Out Investigation on Hindenburg Allegations
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Troubled banking vendor Temenos has continued to struggle as it tries to bounce back from its turmoil. The company’s shares suffered a massive 33% drop last week following controversies related to the Hindenburg Research.
The research alleged that there have been some irregularities within the company, including elusive turnaround and failed products. Temenos has also forecasted a slower growth this year, in line with its recent poor performance.
Temenos has already denied the allegation, with activist investor Petrus Advisers also supporting the company. The investor refuted some of the allegations from Hindenburg, arguing that the company has recently made “substantial progress.”
Temenos Releases Financial Statement
Temenos has also released its financial statement which shows a total revenue of $1 billion, up by 5% from the previous financial year. The statement also shows that its Annual Recurring Revenue (ARR) stood at $730 million, showing a 16% surge.
Legacy term license revenue was $78.1 million and subscriptions revenue rose to $160 million, indicating a 52% surge. Also, SaaS rose to $205.1 million, showing a 25% increase, while software licensing surged 10% to $443 million.
Free Cash Flow was up 26% at $243 million while Temenos recorded a 22% increase to $199.4 million.
While the company recorded positive outcomes in its financial statement, it expects the EBIT to grow by only 7-9% this year. This will be a 3% reduction from the previous forecast after closing at 66 Swiss francs on Monday.
Temenos Promises Serious Investigations With Third-Parties
Non-Executive Chairman of Temenos board, Thibault Tersant, commented on the development. He assured stakeholders and the general public that the board still had the confidence to steady the ship. He added that as a former audit committee chair, he believes that the company still has good financial controls and is running a sound business.
The company places serious importance on its responsibilities to its stakeholders and promises to carry out a thorough investigation of the allegations raised. The company said it would contract an independent third party to examine all the details of the allegation and take necessary actions.
Petrus said the allegations are merely “hearsay”, but supported the departure of its interim Chief Executive Officer, Andreas Andreades. Petrus has been asking Andreades to step down and leave the company since 2022. However, he chose to stay and took the interim position as the Chief Executive Officer after the incumbent, Max Chuard, reigned early last year.
