Parthus Technologies says it is on target to achieve profitability in the second half of this year. Reporting fourth-quarter results to December 31st, 2001, Parthus said total revenue had risen year-on-year to $40.9 million (€47.3 million) from $31.9 million.

Key licensing and royalty revenue grew by 87 per cent year-on-year to $30 million, with 25 licensing and royalty agreements signed during the year.

Bottom-line pre-tax losses rose to $34.4 million from $14.8 million on increased marketing and research and development costs, and charges linked to recent acquisitions.

But pro forma losses before tax were $11.7 million, compared to $8.2 million in 2000.

"I am pleased by Parthus's robust performance in 2001, particularly against the backdrop of the worst semiconductor downturn on record," said Mr Brian Long, chief executive of Parthus.

"Despite the fact that there was a downturn, companies are licensing technology. Our customers have a choice of developing technology in-house or outsourcing that technology and, in a downturn in particular, they tend to move towards outsourcing because of lower costs."

While near-term market conditions in the semiconductor industry remained challenging, Mr Long said the company had a strong sales pipeline and would move to profitability in the second half of the year.

"Our cost base will stay fixed or even be slightly down this year, and revenues are ramping. Our visibility of break-even is very clear. We've met and exceeded market expectations for every quarter of the last seven," he said.

Parthus cut staff numbers to 389 at the end of 2001 from a peak of 429 in the second quarter as part of a cost reduction programme.

Mr Long said Parthus had undertaken extensive tests with handset manufacturers and mobile phone operators on its NavStream3000 GPS technology.

"We have not announced the name of the company yet. The important thing is we will have our GPS technology in one of the first GPS enabled cellphones in the industry," he said.