Parthus, the Dublin-based microchip designer, has reported first-quarter losses in line with market expectations and said it would meet its business targets for the next six months.

The upbeat comments helped push Parthus shares to 94-1/2p sterling in London before falling back to close unchanged at 88p. Mr Brian Long, chief executive, said the results underlined the strength of the company's business model, based on licensing its technological innovations to established chip manufacturers.

The company signed five new licence agreements during the quarter and earned licensing and royalty revenues of $5.9 million (€6.5 million). Total revenue grew by 58 per cent to $9.8 million while pre-tax losses rose to $2.97 million from $2.2 million.

Mr Kevin Fielding, company president, said the group expected to meet the market's expectation for revenues in the next two quarters. Analysts predict sales of up to $10.5 million in the second quarter, growing to $11 million in the third.

He said the company was optimistic because it had hit first quarter targets and secured a number of important clients, including Hitachi and Sharp.

He added that the company was insulated to a certain extent from the general downturn in the semiconductor market as it focused on developing products for the next generation of mobile phones. Companies are continuing to invest in these technologies which will not be deployed for up to 18 months, he said. "Companies buy licences from the research and development budget. It does not come from the operating budget, which is where people are looking to make savings at the moment," he said.