By Marleen Kaesebier April 22 (Reuters) - Banking software company Temenos's chief executive said on Wednesday that the Swiss firm will not be changing its strategy in the Middle East after seeing
Temenos CEO: Middle East Strategy Unchanged as Shares Rise on Strong Results
Temenos Reports Strong Q1 Results and Outlines Regional Strategies
By Marleen Kaesebier
April 22 (Reuters) - Banking software company Temenos's chief executive said on Wednesday that the Swiss firm will not be changing its strategy in the Middle East after seeing success in the region in the first quarter.
The company had reported first quarter results after the market close on Tuesday where its adjusted core earnings beat analyst expectations following what it called a stable sales environment.
Shares were up around 4% in early trading on Wednesday following the results that Vontobel analysts said showed positive trends continuing.
Middle East Growth and Strategy
MIDDLE EAST GROWTH
Continued Expansion in the Middle East
"The Middle East remains a growth market for us as it has been over the last year," CEO Takis Spiliopoulos, who took the helm in December after transitioning into the job on an interim basis from chief finance officer, told Reuters.
Stable Pipeline and Customer Relationships
He added that other than growth, there will be no change to the strategy, believing the region will yield a "very strong" pipeline.
In Tuesday's statement the company said it had expanded relationships with banks in the Middle East. Spiliopoulos said this referred to expanding business with existing customers where Temenos software is already installed, as this is where the majority of the company's business is made.
U.S. Market and Leadership Changes
U.S. DEALS IN PIPELINE
Pipeline of Deals in the U.S.
In the U.S., meanwhile, Spiliopoulos expects various deals in the pipeline to crystallise into revenues sometime this year.
Focus on Core Banking Functionality
"There is always a bit of digital as well, but clearly the pipeline is to allow the core banking functionality," Spiliopoulos said of what products are being focused on. The aim is still to establish customers in the U.S. before expanding further.
Leadership Transition
On Tuesday, Temenos also named its next finance chief. Daniel Schmucki, former CFO of Swiss stock market operator SIX Group, will be taking up the position in August, replacing Spiliopoulos.
(Reporting by Marleen Kaesebier; Editing by Kim Coghill)
