Smartforce, formerly CBT Group, has continued to record a strong recovery in profit before tax, from $2.6 million (€2.57 million) to $9.9 million (€9.8 million), in the three months ended December 31st, 1999. This was achieved after the inclusion of expenses amounting to $4.5 million due to its introduction of Smartforce, and amortisation of intangibles of $1.7 million. Revenue grew from $42.3 million to $60.1 million.

The results are better than US brokers' predictions. The initial market was very positive with the shares soaring by 8.4 per cent to $37.1875, on Nasdaq, immediately after the results.

The group announced its changed strategy last October to move onto Internet education training, and changed its name to Smartforce. This led to a sharp drop in the share price which subsequently recovered. However, as it is providing access to an Internet environment rather than selling software licences, revenue under the new agreement will be recognised over the term of the agreements rather than annually in advance. This revenue is expected to be substantially reduced this year leading to a loss instead of the anticipated profit of some $36 million. However, Mr McCabe told The Irish Times, the group should break even in the last quarter and go into profit in the first quarter of 2001.

Since the advent of Smartforce last November, the group said it has built an initial base of over 160,000 subscribers. Also, it announced a new agreement with Modis Incorporated. Under the agreement, Smartforce will make its solutions available to Modis employees worldwide, including over 1,100 titles from its library. There will also be access to Smartforce's mentor services.

The latest Smartforce figures show a rise in net income from $2.2 million to $8.5 million in the last three months of 1999. Net income per share rose from $0.05 to $0.17.