Misys revenue up but orders fall

Misys, the British banking software firm courted by a US rival in the summer, posted a four per cent rise in first-quarter revenue, helped by customer wins in Asia and the Middle East.

But delayed sales to three new and upgrading customers in Asia and Europe in its Sophis unit, which serves capital markets, meant total orders for the group fell six per cent to £37m, it said.

Misys said it added 11 new customers in banking, resulting in a three per cent rise in revenue and a 17 per cent jump in order intake.

In its original capital markets unit, 13 new customers helped revenue rise nine per cent, while order intake was up 13 per cent, it said.

Fidelity National Information Services walked away from a deal in August without giving a reason, sending Misys' stock 20 per cent lower.

The UK firm said it had rejected a revised offer which undervalued the company.

Analysts said signs of weaker demand in banking and financial markets could have been a factor in the decision to pull the bid.