Baltimore aims to be one of world's top 10 software giants

Click to follow

Fran Rooney, chief executive of Baltimore Technologies, yesterday said the internet security group now aspired to become one of the top 10 software companies in the world - underscoring his confidence with impressive quarterly results and a warmly received US software contract.

Fran Rooney, chief executive of Baltimore Technologies, yesterday said the internet security group now aspired to become one of the top 10 software companies in the world - underscoring his confidence with impressive quarterly results and a warmly received US software contract.

"Our target is to be a billion dollar company," Mr Rooney said, declining to be drawn on when Baltimore would achieve its goal.

Strong demand for the group's encryption solutions, used in a variety of ecommerce applications such as online banking and e-tailing, saw Baltimore's organic sales rise 26 per cent between the first and second quarter this year.

Group sales in the quarter touched £16.1m, a 221 per cent jump year on year, and £3m ahead of forecasts. Revenues from software licensing, which enjoys the highest margins in the group, jumped 400 per cent to £8m, occupying 50 per cent of sales against 26 per cent a year earlier.

However, costs more than doubled, at £26.7m, and a £7.9m charge associated with acquisitions sent the group to a second-quarter loss of £5.6m.

Many analysts were expecting Baltimore to beat forecasts, but others were more cautious in the wake of a recent profits warning from Entrust, its US rival. The group unveiled a contract win with Commerce One, the US leader in online marketplaces, to link suppliers of commodity goods with purchasers. Analysts hailed the contract as a stamp of approval for Baltimore's technology.

The company said it expected the recent problems at Barclays Bank, which has seen its customers able to peruse accounts other than their own in its online bank, was a mixed blessing for the company. "Barclays is not a customer of ours. What happened is not good for anybody as people will see it as damaging to e-commerce - but it should make people want our products," a spokesman said.

Baltimore shares closed up 47p at 694p.

Comments