Dublin-headquartered travel software group Datalex has reported better-than-expected revenues for the first half of the year of $15.7 million (€11.57 million) but restructuring costs contributed to a loss of $0.9 million.

The company said in a statement that the loss, which compares with a profit of $1.6 million in the first half of 2006, was a result of "general cost pressures, including the impact of a weak dollar".

It said the restructuring programme, which incurred a $1.2 million charge, would result in an expected $2 million reduction in ongoing annual operating costs.

In a research note, NCB analyst Tricia McEvoy said the firm's transition to a "transaction pricing model" was progressing well, and she noted that transaction revenue was now 29 per cent of its overall e-business revenues, compared with just 8 per cent in the previous year.

Under the transaction pricing model, Datalex gets a percentage of the revenues put through its systems by customers.

"We continue to be successful in closing transaction revenue contracts but, as noted previously, these do not add to revenue in the short-term," said chief executive Cormac Whelan.

"A number of large customers will 'go live' on the transaction-based model in Q3 and Q4 2007."

Mr Whelan also said the company had invested in its product suite so that it could be sold into the broader travel market and not just to airlines.

Two of the world's largest travel agencies, Flight Centre and STA Travel, are using Datalex's TDP software, both for point of sale in their shops and call centres, and for online selling.