In Q1, its smallest and quietest period of the year Misys still managed to increase revenue across all its divisions and regions resulting in 4% (cc) YOY revenue growth, taking total revenue for the period ending August 31 2011 to £90m.
Treasury and Capital Markets was the best performer (9% growth, to £41m) but there was a significant gap to Banking (3%, to £34m) and Sophis (1%, to £15m). The picture was slightly different in terms of order intake where the total was down 6% - Sophis orders were down 54% (£6m). However three delayed Sophis deals are now at final contract stage.
The most encouraging news was around the number of new customer wins – 13 in Capital Markets across TCM and Sophis, and 11 in Banking including 3 new BankFusion customers and 8 new Transaction banking customers. 4 BankFusion implementations went live during the quarter. New solution revenue was also good at 62% of initial licence fees revenues and 53% of initial licence fee orders.
The interim results statement support the decision to cease talks with would-be acquirer Fidelity National Information Services (FIS) last month, which came to a halt because Misys said FIS’s offer undervalued the company (see Misys and FIS leave the table). Although the Misys transition programme is ongoing, performance is heading firmly in the right direction.