The troubled Nasdaq-listed software group CBT has reported a modest recovery in its fortunes in the first quarter of 1999, with net income of $1.3 million (€1.22 million) in the period.

This is well below the $7.3 million net income in first quarter 1998 but the chairman, Mr Bill McCabe, said: "I am pleased with the results we achieved, we delivered a solid performance during the first quarter and continued to make good progress toward our revenue and profitability growth objectives."

The market's response to the first quarter figures, however, was muted, with CBT shares trading up 50 cents in early trading to $13.37, double the low after last November's profit warning but a long way off the $63 high of a year ago.

"We added more than 100 new corporate customers during the quarter, as well as signing more than five contracts valued at over $1 million each, including a $1.1 million contract with DynCorp that we announced today," said Mr Greg Priest, chief executive.

Turnover for the first quarter was marginally higher at $40.2 million, but a big increase in operating expenses meant that net income - after-tax profits - fell from $7.3 million to $1.3 million with earnings per share down from 17 cents to three cents.