Escher : update on customer rollout

28 November 2014

Escher Group Holdings plc

Escher update on customer rollout

Escher Group Holdings plc, (AIM: ESCH, "Escher" or "the Group"), a world-leading provider of outsourced, point of sale software to the postal industry, updates its guidance on when it will recognise the outstanding license revenue from a key customer. License recognition is dependent on the rollout by the customer to a certain number of workstations. Although the rollout has acceleratedin recent months, Escher now does not expect the customer to roll out to sufficient workstations before 31 December 2014 to recognise the remaining license fee. 

Escher will have received 75% of the total license fee by the year end. The remaining $2.4m is now expected in 2015.

While the rest of the Group continues to trade in line with Board's expectations, the adjusted year-end figures are dependent on a new license agreement being signed before the year end.

Liam Church , Escher's CEO said:

"Our software is currently live in a number of the customer's post offices. We continue to receive a portion of the license fee on a monthly basis and have received some 75% of the total license fee.  Recently, the rollout has been accelerating on a monthly basis but we now expect rollout to slow temporarily in the weeks coming up to the busy holiday period."

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About Escher Group

Escher is a world leading developer and provider of outsourced, point-of-service software for use in the worldwide postal industry. Its core software, RiposteEssential™, enables post offices to expand upon their traditional offering, providing additional new services, reducing costs and increasing efficiency. Riposte® is a messaging middleware that enables applications operating on different computers to communicate with each other. The Riposte® software manages data, monitors the system status and communicates across the network. Escher Group operates across two divisions - a Retail Software Division and a Message Based Communications Division.

The Retail Software Solution (RiposteEssential™) serves the postal and courier markets. Transactions include mail and financial services and the system is integrated with utilities and financial services companies, banks and central and local governments.

Escher's Message Based Communications Division (RiposteTrEx™) is based on a digital post office box model and is designed to provide a national digital infrastructure linking governments, businesses and citizens via a secure platform.