Eckoh PLC Largest Ever US Secure Payments Contract Win (1185A)
March 22 2017 - 2:00AM
UK Regulatory
TIDMECK
RNS Number : 1185A
Eckoh PLC
22 March 2017
PRESS RELEASE
22 March 2017
Eckoh plc
("Eckoh" or the "Company")
Eckoh wins its largest ever US Secure Payments Contract worth
$3.7m
Latest contract win extends total US payment contract value this
financial year to over $8m
Eckoh plc (AIM:ECK) ("Eckoh" or the "Group"), the global
provider of secure payment products and customer contact solutions,
announces that it has won a new $3.7m five-year contract to provide
secure payment services to a large US telecommunications provider.
The solution, which will be deployed in financial year FY18, uses
Eckoh's patented tokenisation technology to secure card payments
being made through the organisation's contact centre facilities.
The new contract, Eckoh's largest US secure payments contract to
date, enables the client to comply more easily with the Payment
Card Industry Data Security Standards ("PCI DSS") and to help
prevent fraud.
In the half-year results announced on 29 November 2016, Eckoh
reported strong progress in the US with payment contract value
having more than doubled compared to that of the previous financial
year. Since then there have been a further three US secure payment
contract wins, including today's. This takes the number of payment
contracts won this financial year to nine, matching the number of
contracts won in the previous financial year, but delivering
contract value of $8.3m which is over five times higher. As notable
is the fact that of the contracts won this year only two of these
are priced using an upfront fee model ("Capex"), the remaining
seven using the SaaS style pricing model ("Opex"), which as
announced in the trading update last September would be the Group's
preferred model going forward.
The table below illustrates the progress made in the US market
since trading in the region commenced in April 2014. With less than
10% of the aggregate contract value this financial year having been
won through the two Capex contracts, the SaaS-style contracts will
improve Eckoh's forward visibility of US payment revenues
considerably, as well as more closely aligning the US with the UK
model where there are 85% recurring revenues overall.
Contract Total Contract Average Capex Opex
wins Value Contract
Value
------ --------- --------------- ---------- ------ -----
FY15 5 $0.26m $53K 5 0
------ --------- --------------- ---------- ------ -----
FY16 9 $1.55m $173K 8 1
------ --------- --------------- ---------- ------ -----
FY17 9 $8.3m $918K 2 7
------ --------- --------------- ---------- ------ -----
Nik Philpot, Chief Executive Officer Eckoh plc, commented:
"The opportunity for Eckoh's patented secure payment products in
the largest contact centre market in the world is substantial and
today's $3.7 million contract is our largest ever. With a limited
number of competitors and a product portfolio with a breadth and
flexibility that they cannot match, we are convinced that Eckoh can
become the natural choice for contact centre security. The strong
progress we have made in the US this year is clear, both in terms
of the value of the contracts and the quality of those future
earnings, and underscores our ability to capture the scale of the
opportunity and to deliver significant growth over the coming
years."
-ENDS-
For more information, please contact:
Eckoh plc
Nik Philpot, Chief Executive Officer Tel: 01442 458 300
www.eckoh.com
Buchanan
Giles Sanderson, Stephanie Watson Tel: 020 7466 5000
www.buchanan.uk.com
N+1 Singer (Nomad & Joint Broker)
Shaun Dobson, Lauren Kettle Tel: 020 7496 3000
www.n1singer.com
Berenberg (Joint Broker)
Ben Wright, Chris Bowman, Amritha Murali Tel: 020 3207 7800
www.berenberg.de/en
About Eckoh plc
Eckoh is a global provider of secure payment products and
customer contact solutions, supporting an international client base
from its offices in the UK and US.
Our secure payments products, which include the patented
CallGuard, can be hosted in the Cloud or deployed on the client's
site and remove sensitive personal and payment data from contact
centres and IT environments. The products offer merchants a simple
and effective way to reduce the risk of fraud, secure sensitive
data and become compliant with the Payment Card Industry Data
Security Standards ("PCI DSS") and wider data security regulations.
Eckoh has been a PCI DSS Level One accredited Service Provider
since 2010, processing over $1bn in card payments annually.
Eckoh's customer contact solutions enable enquiries and
transactions to be performed on whatever device the customer
chooses, allowing organisations to increase efficiency, lower
operational costs and provide a true Omni-channel experience. We
also assist organisations in transforming the way that they engage
with their customers by providing support and transition services
as they implement our innovative customer contact solutions.
Our large portfolio of clients come from a broad range of
vertical markets and includes government departments, telecoms
providers, retailers, utility providers and financial services
organisations. More information at www.eckoh.com.
About PCI DSS compliance
PCI DSS is the Payment Card Industry Data Security Standard and
this is a worldwide standard that was set up to help businesses
process card payments securely and reduce card fraud. The way it
does this is through tight controls surrounding the storage,
transmission and processing of cardholder data that businesses
handle. PCI DSS is intended to protect sensitive cardholder data.
For more information please see:
http://www.theukcardsassociation.org.uk/security/what_is_PCI%20DSS.asp
This information is provided by RNS
The company news service from the London Stock Exchange
END
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