Temenos Drops After CEO Steps Down, Cuts Outlook: Zurich Mover
Temenos Group AG (TEMN), the banking software maker that retreated from a bid to buy Misys Plc, fell the most in 3 1/2 years after Chief Executive Officer Guy Dubois quit and the company cut its sales forecast.
Temenos plunged as much as 22 percent, the most since January 2009, and was down 21 percent to 11.25 Swiss francs by 10:30 a.m. Zurich time, giving the Geneva-based company a market value of about 810 million francs ($824 million). Temenos has fallen 27 percent this year.
CEO Dubois is stepping down for personal reasons and will be replaced by finance chief David Arnott, Temenos said yesterday after markets closed. License revenues for the second quarter plunged 37 percent to $24 million, and Temenos cut the upper end of its sales growth forecast range to 1 percent from 6 percent for the full year.
The CEO’s resignation and the guidance cut “will not be well received by markets and delivers a severe hit to an already tarnished credibility,” Bank Vontobel analyst Jean-Philippe Bertschy, who has a buy rating on the stock, said in an e-mailed note to clients. Temenos faces “a further worsening of the environment,” he said.
Temenos terminated discussions with Misys in March on a possible all-share merger. The U.K. competitor was purchased by Vista Equity Partners LLC.
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