Rns...21 Jun 2010 10:52
(Rewrites, adds CEO, CFO interview.) By Tommy Stubbington Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Voice recognition specialist Eckoh PLC (ECK.LN) said Monday it expects to return to profit in the first half of fiscal 2011 after posting a narrowed pretax loss for the full year ended March 31. The company reported a fiscal 2010 pretax loss of GBP197,000, compared with a loss of GBP1.37 million a year earlier. Stripping out non-recurring administrative expenses the company swung to pretax profit of GBP657,000, from a loss of GBP387,000 in 2009. The company is now trading profitably and expects to report a pretax profit for the current fiscal half-year, Finance Director Adam Moloney told Dow Jones Newswires. The company recently disposed of its interactive voice recognition unit, merging it with rival Telecom Express Ltd., and is now focused on more complex voice recognition services, known as speech solutions, where it expects strong revenue growth to continue, Moloney added. Revenue for the year from continuing operations rose 19% to GBP7.92 million from GBP6.67 million. The company said it doesn't expect to suffer from cost cutting, particularly in the public sector, as its services can save its clients money by increasing the efficiency of call centers. "We don't expect to be a victim [of cost cutting]," Chief Executive Nik Philpot told Dow Jones Newswires, adding that public sector cuts may drive demand in some cases. Many local councils don't provide 24-hour information phone lines, Philpot said, adding Eckoh can provide these, along with services such as telephone payment for parking fines. "This is a place for them to look to save money," he said. Shares at 0830 GMT were up 0.1 pence, or 2.6%, at 4.9 pence, outperforming a slightly higher Alternative Investment Market--up 0.6%. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com (END) Dow Jones Newswires June 21, 2010 04:42 ET (08:42 GMT)
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