CBT Group, the educational software company, has recorded a net loss of $366,000 (#352,000) in the three months ended June 30th 1999, compared with a profit of $4.1 million (#3.9 million) in the same period in 1998. The underlying trend was much better than indicated by these figures, and the market reacted enthusiastically by pushing the shares up $2 5/16 to $26, on Nasdaq, following publication of the results.

The loss was incurred because of once-off acquisition charges and depreciation of intangibles, in connection with the take-over of Knowledge Well. Excluding these, CBT recorded a net profit of $5.7 million, compared with a net profit of $9.6 million (excluding cost of acquisitions). Revenue rose from $44.85 million to a record $47.25 million. "The results of this quarter are particularly noteworthy because they represent the strongest revenues yet achieved in any quarter in the company's history," said group president and chief executive officer, Mr Gregory Priest. "For the third consecutive quarter, we showed positive progress against our key metrics. The progress of the business this quarter has been extremely encouraging."

Results for the first six months show a rise in revenue from $84.78 million to $87.44 million. Net profit fell from $11.4 million to $0.96 million but this was after an exceptional charge of $5.9 million.

Mr Priest said "not only did we continue to make further progress in rebuilding our core business" but "we also took significant steps that we believe are key to our market leadership over the next several years. With these steps taken, we believe that we have built a foundation to support a truly powerful franchise in professional education".

Knowledge Well recorded sales of $1.5 million in the second quarter. Also, it won a contract worth $0.5 million.

CBT has also announced the filling of its final senior management position following last year's reshuffle; Mr David Drummond has been appointed executive vice president of finance and chief financial officer.