Revenue at e-learning group SmartForce jumped 49.5 per cent to $68.1 million (E;75.2 million) for the three months to end-September and the group reported a net profit of $2.2 million for the quarter after amortisation compared with a loss of $5.3 million for the third quarter of 2000.

The firm also announced yesterday a strategic agreement with a US provider of outsourced human resources, Exult. This will offer a path into the fast-growing outsourcing market and a guaranteed value of $17 to $28 million in contract value, according to SmartForce.

Before acquisition-related amortisation charges, net profit for the quarter was $4.7 million, or eight US cents per share, up from a previous loss of $3.4 million, or six cents per share. For the nine months to the end of September, the group reported a net income of $3.3 million from a loss of $26 million for the corresponding nine months in 2000.

In a difficult economic environment, the company said its average contract size had increased to $175,000 from $172,000 in the previous quarter and up 40 per cent on the corresponding period last year. It said it had exceeded its goal of signing at least five deals worth more than $1 million during the quarter.

Chairman and chief executive Mr Greg Priest said the firm would continue to invest for growth.