Friday, 9 January 2009

Misys moves forwards at half-time

(By Anthony Miller) Some positive news from Banking and Healthcare software firm, Misys, in today’s first-half trading update (see here). Revenues are up across the board (pro forma, like-for-like, usual exclusions, etc etc) and margins too. Best performer was Misys’ Global Services business, which saw mid-teens revenue growth on the back of a boost in premium support and managed services. As we have said before, support agreements and long-term services contracts will be the bedrock for many software firms struggling to find new licence sales and upgrades, though it seems Misys is doing well enough on that account anyway. However, CEO Mike Lawrie acknowledged extended decision cycles for larger Banking deals and some slowing in clinical solution purchases, but remained upbeat. He was particularly encouraged by Barak Obama’s recent pronouncements on the need to upgrade the nation’s healthcare IT systems but I have to say, that is an opportunity I view with more caution than he! We'll hear the full story on 1H09 at the end of the month.

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