Temenos says it “fundamentally refutes” Hindenburg allegations, plans independent review of claims
Swiss core banking vendor Temenos has said it “fundamentally refutes” allegations of client dissatisfaction and accounting irregularities made in a report by Hindenburg Research last week.
Temenos refutes claims made by Hindenburg Research
Hindenburg Research says its report followed a four-month investigation into Temenos, including interviews with 25 of the vendor’s former employees and a number of its previous clients.
The firm claims its investigation “uncovered hallmarks of manipulated earnings and major accounting irregularities”.
Hindenburg Research continues: “This includes evidence of roundtripped revenue, sham partnerships, rampant pulling forward of contract renewals, backdated contracts, excessive capitalisation of seemingly non-existent R&D investments, and other classic accounting red flags.”
Temenos was quick to deny the allegations made in the report, stating on the same day of the report’s publication that it “fundamentally refutes” the findings, which it claims contain “factual inaccuracies and analytical errors, together with false and misleading allegations, which are intended to adversely impact the Company’s share price”.
“The company is confident in the strength of its business, financial performance and cash position,” its statement continues.
During the vendor’s results call for Q4 and FY 2023, which took place on 19 February, Takis Spiliopoulos, CFO of Temenos, stated that the board “will oversee a thorough examination of the allegations raised, with independent third parties”, which he affirms will include forensic accounting.
“We are in the process of hiring an accounting firm in order to do precisely that on all the allegations having an accounting consequence.”
The allegations were also swiftly addressed by chairman of the board Thibault de Tersant at Temenos’ Capital Markets Day, which took place on 20 February.
“I can assure you that we have never stopped strengthening the control environment of this company,” de Tersant told attendees. “This company is running a very strong business.”
Temenos has secured a string of new deals for its core banking tech in recent months with firms including Vietnam’s LPBank, Segura Bank International in Puerto Rico and The National Bank of Iraq (NBI) and Capital Bank of Jordan.
