One of the companies most intimately involved in security in the new wired world is Baltimore Technologies and this week, it reported better than expected sales in the second quarter and lower than forecast losses. Of more importance to shareholders the company expects to be in profit within two years.

That will be some solace to those investors nursing hangovers from Baltimore's brief and inauspicious membership of the blue-chip FTSE 100 index. The jump in sales of 76 per cent was influenced by the company's acquisition of two more companies but that is no surprise in a sector where acquisition is the key to survival and growth for those at the forefront of the pack.

Most encouraging for chief executive Fran Rooney must have been the company's performance relative to its main rival, the US electronic security specialist Entrust. It only reported flat sales in the same quarter, indicating that Baltimore is succeeding in its efforts to make up ground.