Chief executive Mike Lawrie said in a trading statement that global credit market issues have not materially impacted its business. While order intake in the treasury and capital markets division was below its internal target, he put this down to sales execution issues that he said are being addressed.
Misys said its business model and global footprint have helped to insulate it from turbulence in the macroeconomic climate. Its banking business has not been affected as it has a huge customer base and growing recurring revenue streams.
It said spending on core banking products and services tends to be less discretionary as they drive productivity and efficiency improvements as well as mitigating risk.
In addition, the majority of its banking business comes from Tier 3 and 4 banks in Asia, Africa, and the Middle East. More than half of revenue in treasury and capital markets was not dependent on new license sales, and this, coupled with a strong footprint in emerging markets, particularly Asia, helped to mitigate the effects that some of its competitors may face.
Revenue growth in both its banking and treasury and capital markets is expected to be in the mid-single-digit percentage range. It US healthcare business is expected to grow again and report slight growth.
The boom area has been its global services operation, which is expected to report revenue growth in the mid-teens.
