Share prices in Baltimore Technologies, the Irish Internet security company, rose rapidly yesterday after the firm released better than expected results. The company said a jump in the contribution from software licence revenues spurred the rise.

Baltimore, which is listed on New York's Nasdaq market and on the London stock exchange, said third-quarter revenue climbed to $10.3 million (€10.02 million) from $6.3 million (€6.1 million) in the same period of 1998.

Software licence revenues increased significantly during the year, the company said, reflecting the increasing demand for the PKI Internet security products. Software licence revenues have risen to 42 per cent of total revenues in the third quarter, up from 11 per cent in the first quarter and 33 per cent in the second quarter, Baltimore added.

Shares in the company, which closed the previous evening at $46.50, ended trading last night at $49.38.

"Today's record results are a clear endorsement of the success of our strategy in investing in global market opportunities. Based on the strength of our current pipeline and technology leadership, we are confident that we can continue to grow our revenue base, especially in the area of licensed software," Mr Fran Rooney, the company's chief executive said.

The company reported a loss for the period of $13.7 million (€13.33 million), compared with $2.6 million (€2.5 million) in the 1998 period.

During the quarter, Mr Rooney added, Baltimore launched its Nasdaq offering, which had been successfully completed in the last few weeks.

"As part of the offering we raised additional capital of over $158 million, which now puts the company in an excellent position to rapidly grow the business both through organic means and by acquisition," he said. Baltimore also reported an increase in non-European revenues, which it attributed to an investment in international sales and marketing. The company said revenues increased in all of its regions.

"We are excited by the accelerated adoption of PKI in areas such as wireless, global banking organisations and government," Mr Rooney said. "In this quarter we have demonstrated our ability to lead this market with some exciting new technologies."

He said the firm was well placed to end the year in a prominent position in the information security industry, and could look forward to a successful outcome for the year.