DUBLIN SOFTWARE company NewBay generated a pretax profit of €2.9 million in 2007 following a 223 per cent jump in revenues to €14.3 million.

Documents just filed with the Companies Office show that while turnover grew from €4.4 million in 2006, cost of sales only increased from €1.2 million to €2.3 million.

Europe accounted for sales of €8.9 million with €5.3 million coming from the US.

The company now has retained profits of €2.4 million and paid Irish corporation tax of €370,666 last year.

NewBay, which was founded in 2002, provides software to mobile operators and other service providers that enable their subscribers to write blogs, engage in social networking and upload photos from their handsets.

The software works with popular web services including Facebook, Bebo and MySpace.

Headed up by former Baltimore Technologies executive Paddy Holohan, NewBay Software is backed by Balderton Capital and Fidelity Ventures.

The accounts show that the two venture capital investors provided an additional €6.5 million in funding during 2007.

Barry Maloney, a partner in Balderton, and Simon Clark, from Fidelity, sit on the board. Paul McKeon, chief executive of software company Propylon, is also a shareholder and board member.

The company has successfully signed up a number of large international operators including T-Mobile USA, O2, Orange, Vodafone and Swisscom.

Early in 2008, it signed a deal with T-Mobile International which is understood to be worth about €5 million.

NewBay says its software is now available to more than 250 million mobile subscribers.

NewBay has been hiring aggressively in the last year and now employs in excess of 200 staff at offices in Dublin and California.

The average number of employees was 78 during 2007.