By John Revill
ZURICH, Jan 16 (Reuters) – Temenos TEMN.S is trying to find a brand new chief government after Max Chuard stop the Swiss monetary software program firm which has been below strain from activist shareholders.
Petrus Advisers has been calling for the departure of Chuard, saying the manager who has led the corporate since 2019 was “far out of his depth”.
Temenos shares gained practically 6% in early buying and selling on the Swiss trade after the announcement.
Petrus welcomed Chuard’s departure, though it stated the management transition didn’t go far sufficient with Government Chairman Andreas Andreades taking on as interim CEO.
Petrus had additionally beforehand referred to as for Andreades to step apart, saying he had carried out poorly.
“The management transition as proposed by Temenos falls wanting our calls for,” Petrus stated in a press release.
“Andreades nonetheless in energy: with the proposed mixed position as interim CEO till a brand new CEO has been discovered in addition to Government Chairman till the AGM, Andreades …may have an much more highly effective position to play within the coming months.”
Temenos shares have greater than halved in worth within the final 12 months as the corporate scrapped its full yr steering and reported a steep fall in third quarter revenue.
On Monday the Geneva-based firm pre-announced its fourth quarter figures, saying its working revenue had fallen by 27% and its adjusted EBIT (earnings earlier than curiosity and taxes) margin shrunk to 34% from 44% a yr earlier.
Full yr outcomes have been in keeping with its revised steering, it stated.
Temenos had beforehand stated decision-making by its banking prospects had turn out to be extra cautious whereas its prices have been rising.
On Monday Chuard, an organization veteran of 20 years, acknowledged that 2022 had been troublesome, with decrease licence gross sales though gross sales of software program as a service had elevated.
“We took decisive motion early in This autumn to strengthen our gross sales management and gross sales execution and this resulted in normalised execution of deal closures within the quarter,” he stated in a press release.
Nonetheless, Chuard determined to step down, Temenos stated in a separate assertion.
“It’s time for Temenos to set a course for the long run with the subsequent technology of management,” Andreades stated.
Petrus – which holds a stake of lower than 3% in Temenos – stated Andreades shouldn’t be concerned within the seek for Chuard’s successor, including its upcoming investor day needs to be postponed because it made no sense to carry an occasion below an interim government.
Financial institution Vontobel analyst Michael Foeth stated the fourth-quarter figures have been above expectations, whereas the management change could possibly be a optimistic.
“Following mounting exterior strain, the introduced change in management initiates a interval of change which ought to assist to rebuild investor confidence,” he stated.
(Reporting by John Revill; enhancing by Jason Neely and Emelia Sithole-Matarise)
((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net))
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