Datalex, the Howth-based provider of e-business solutions for the travel industry, reported full-year results in line with analysts' expectations yesterday.

The company reported total revenues of $33.3 million (#30.7 million), an increase of 155 per cent year on year. Net loss for the year was $15.5 million.

Revenues for the fourth quarter were $10.8 million, an increase of 176 per cent from the same quarter in 1999. Quarter-on-quarter revenue grew by 9 per cent.

Net loss for the fourth quarter was slightly more than forecast, coming in at $5.4 million due to investments in sales and marketing, and research and development.

Mr Barry Dixon, technology analyst with Davy stockbrokers, said the results were ahead of expectations but showed a slightly worrying rise in operating costs.

"We don't mind the rise in R&D costs but the increase in sales and marketing costs is a little bit more of a concern," he added.

Mr Neil Wilson, chief executive at Datalex, said the company had incurred additional costs due to the establishment of a joint venture with Vail Resorts and the strength of the Irish pound.

Datalex had also speeded up the recruitment of 40-50 staff during the last quarter and this was now reaching a plateau level at around 600, he added.

Mr Wilson said the slowdown in the US would not affect the company as firms would still invest in technology to bring down costs. He said Datalex was on course to profitability by the fourth quarter this year. Margins would improve to about 50 per cent from their present level of 22-23 per cent, he added.