February 22, 2024 (MLN): Systems Limited (PSX: SYS) is unlikely to suffer any material impact from the 'alleged' accounting scandal that rocked its Swiss partner Temenos AG.
Last Thursday, a prominent US short seller Hindenburg Research accused Temenos of manipulating its earnings, suggesting serious flaws in the books of the company.
Temenos AG's stock price plunged by nearly a third, the biggest drop since 2009 on a closing basis.
To note, Temenos contributes around 7-8% to Systems Limited's revenue, according to brokerage house Topline Securities.
However, Temenos has denied the Hindenburg Research report, saying it contained “factual inaccuracies and analytical errors, together with false and misleading allegations.”
The company is confident in the strength of its business, financial performance, and cash position, it said.
The swiss company provides extensive and richest set of banking functionality across retail, corporate, treasury, wealth and payments.
It is used by more than 3,000 financial institutions across 150 countries, including Standard Chartered, Julius Baer, and Nordea, according to its website.
