Eckoh (AIM: ECK), is pleased to announce that it has recently secured three significant contracts in the US worth over $2.5m in total over the next three years.
Two of the contracts are for Eckoh's secure payments solution charged on a Software as a Service ('SaaS') basis. This reflects the shift in the Company's US pipeline to focus on a SaaS style pricing model, highlighted in the trading update on 2 September, which over time will offer Eckoh greater revenue visibility, longer-term client relationships and higher overall gross margins.
The first contract is a two-year agreement with one of the largest manufacturers and suppliers of nutritional supplements in the US. The contract represents an important milestone as it is the first time that Eckoh has sold a hosted secure payments solution in the US market. The second contract is a three-year deal with a Fortune 500 corporation in the financial services sector. Notably, the client is a long-standing customer of PSS who Eckoh acquired in November 2015, and the contract represents the first success in cross-selling Eckoh's secure payments solutions into the extensive PSS customer base. Both contracts are expected to go live by Spring 2017 and will begin to generate recurring revenue in the new financial year.
The third contract win is a three-year agreement with one of the largest US telecommunications providers. Eckoh will provide its market leading browser-based agent desktop 'Coral' to over 3,000 contact centre agents in a brand new facility opening at the end of 2016. Coral acts as an aggregator for any underlying technology on which the contact centre may be operating. It simplifies the agent's operating screen reducing call handling time, and provides the enterprise with total scalability, a futureproof environment and allows new features to be implemented seamlessly and instantly.
Nik Philpot, Chief Executive Officer of Eckoh, commented:
'It is exciting to see the contract momentum in the US market building and for Eckoh to be increasingly securing contracts of greater value and with brand leaders in their fields. In addition, the move to a SaaS style price model will over time build a base of recurring revenue in the US comparable to the UK operation and we would expect this to underpin the growing value of the Company in future years.
Our trading performance at the end of the first half of the year has been strong and we remain confident that the revised market expectations for this financial year will be achieved.'
This announcement contains inside information.
For more information, please contact:
Adam Moloney, Group Finance Director
Tel: 01442 458 300