SmartForce should generate $265-$270 million (€310E316 million) in revenues this year and deliver sustainable growth of 40-50 per cent over the next few years, Mr Greg Priest, its chairman and chief executive said yesterday.

Delivering an upbeat assessment of the e-learning firm's fortunes just two days before it announces second quarter results, Mr Priest, said he expected the company to continue making profits.

SmartForce is one of the few Irish-based technology firms to turn a profit and its share price has not suffered the dramatic collapses of Parthus, Baltimore or Trintech.

Speaking after the company's annual general meeting in Dublin, Mr Priest, said although many potential customers were cutting IT budgets there was a still an understanding of the strategic importance of training.

A single contract with Unisys, had delivered $8 million cost savings to the firm in the first year and a six month return on investment, he said.

Mr Priest said SmartForce had not been adversely affected by the collapse of the dot.coms as most of its customers were large enterprises. Although he admitted one or two customers had gone bankrupt.

SmartForce was now focused on broadening its e-learning product suite and its geographical spread, said Mr Priest.

The company, which employs about 500 staff in the Republic, was considering acquisitions in content areas such as financial services, he added.