A 38 per cent rise in revenue to $63.7 million at Dublin technology group Curam Software last year failed to prevent the company from sliding deeper into the red, as its operating loss for the period climbed to almost $1.3 million from $180,000 in 2005, accounts just filed for the firm show.

Curam, which had been previously tipped as a candidate for flotation, develops so-called social enterprise management systems that are used by public agencies to process services such as pension, disability and other claims.

The company employs more than 500 people at sites including the Republic, the US and Britain. Almost $45 million of its 2006 revenue, which is reported in US dollars, was generated outside the EU.

Curam is backed by Fidelity Ventures, which has a major stake in the firm, having invested $10.5 million in 2002.

Despite the losses, Curam is generating significant cash flows and, at the end of 2006 had available funds of more than $25 million. However, administrative expenses rose 33 per cent to more than $40 million in 2006 and the cost of sales by 64 per cent to $24 million.

The firm had deferred revenue (income not yet received but which is due for services contracted) of more than $16 million at the end of December.

Co-founded in 1990 by its current chief technology officer, Ronan Rooney, Curam opened a US office last year. The company is headed by John Hearne.