Q3 interims from banking and capital markets software provider Misys confirmed it is on track to meet its medium term targets following the completion of the Sophis acquisition on 28 February (see Misys boosts TCM with Sophis buy). It is reassuring to see Misys has already got to work integrating Sophis' back-office functions and sales force - so it will be keeping a tight control on the costs. For the three months to 28 February, Misys reported revenue growth of 7% in constant currency to £85m (up 2% YTD), with orders up 34% (up 13% YTD). Profitability wasn’t disclosed however. The Treasury & Capital Markets (TCM) division performed best, up 11%, while banking grew 2%.
This shows a good improvement in momentum following a flat H1 (see Misys dishes out more dosh), and the picture going forward is promising, as TCM orders were up 50% thanks to demand for products such as its OpicsPlus, Summit, and LoanIQ. Banking orders meanwhile were up 17%, thanks to progress with new products such as BankFusion, which added six new customers (19 YTD), and included Misys’ second BankFusion Midas conversion, and its first BankFusion extension across additional territories for client BBAC. This is all good news for Misys, which is trying to protect its installed base and stop defections to the likes of Temenos, who have been nibbling away at Midas accounts. Of course there is still plenty of work to do to overcome the challenge from competitors like Temenos, Infosys (Finacle), and TCS (BaNCS).
New products including BankFusion, now account for 59% of all initial licence fee (ILF) orders, compared to 33% in Q3 last year. This is good news as Misys really is selling new products to market.