TKS – Teknosoft Rides Out GSTPA Bankruptcy

TKS Teknosoft SA, the Swiss based partners of Indian software developers Tata Consultancy Services which created the TFM for the now bankrupt GSTPA, says sales rose 10 per cent last year to CHF 78 million. However, the year was overshadowed

By None

TKS – Teknosoft SA, the Swiss-based partners of Indian software developers Tata Consultancy Services which created the TFM for the now-bankrupt GSTPA, says sales rose 10 per cent last year to CHF 78 million.

However, the year was overshadowed by the bankruptcy of GSTP AG in November. “The potential loss in revenue is important and potential future revenues vanish,” expalins TKS- Teknosoft.

During the year, the company signed two major contracts in France with Socit Gnrale and BNP. Skandia bank in Zurich also went live on its Quartz solution, andanew project was launched with Union Bancaire Prive in Geneva . TKS also bought e-BankingSolutions (e-BS) from redIT, a spin-off of the NCR financial division in Switzerland which developed a banking software application called alpha. 23 banks in Switzerland will be offered the possibility to migrate smoothly on Quartz. eBS hassince been integrated into the company, and a number of sales executives were recruited to sell for Quartz in the UK, Germany, France, Benelux countries.

“We are lucky to have such a strong and excellent relationship with our Indian partners TATA Consultancy Services (TCS) who demonstrate year after year how performing they are,” says Pierre Page, Chairman. “Thanks to our unique partnership since 1985 and our experience with on-site/off-shore projects, TKS continues to acquire new clients, keeping our long-lasting ones (i.e. SIS or Swisscom). New employees and e-BS acquisition will reinforce our position as a leader on the Swiss market. Progress was also made in new fields and new clients from other professional sectors were attracted throughout the year i.e. Philip Morris in Lausanne. The revenue increase achieved in the year would of course have been better, had GSTPA not announced bankruptcy, despite our successful delivery of the Transaction Flow Manager unanimously accepted as a “beautiful piece of technology”. Our results over the last years and our expansion indicate a dynamic business with an effective strategy and a highly motivated team. These attributes, make me confident that despite the ambient depressed market, further progress and growth will continue.”

Dominique Freymond, Chief Executive, added: “I am delighted to report a very successful period since the turnover for the group for the 12 months ended 31 December 2002 was CHF 78 million – an increase of 10% over last year’s results) and these positive results are all the more pleasing that they were achieved at a time of significant uncertainty for the financial services industry as a whole and at a time when competition in a field where TKS/TCS has been a pioneer has become severe. We acquired new customers and managed to keep our long-lasting and privileged relationship with our old customers, which for TKS has always been of the highest importance. This growth was accompanied by planned investment in infrastructure to support our business, 3 new salesmen joined our IT Services Business Unit and another 4 joined the Quartz European sales team, to which of course we must add the 45 employees of e-BS who have joined TKS. Of course the bankruptcy of the GSTPA was a severe blow for us, both for financial reasons but also because we are fully conscious – as everybody else is – of having delivered a fantastic system to the industry and that because of factors over which we had no control: the general situation of the international banking market and economic conditions, the whole project collapsed. Our future strategy is nevertheless to carry on steadily in the same direction, delivering on time and within budget IT services to the industry and concentrate our energies on the development of TKS Banking Solutions all over Europe.”

TKS IT Services and TKS Consulting currently operate in Switzerland, France and Austria. TKS Banking Solutions covers all European countries distributing and marketing the Quartz Banking Software, jointly developed by TKS and TCS.

TKS says it continues to establish strong relationships with its customers by delivering on-time and within budget complex projects mainly to large customers (including Swisscom and Socit Gnrale). The recent acquisition of e-BS will re-inforce its presence in the Swiss market and will allow TKS to offer to the 25 customers of e-BS a smooth migration to Quartz.