Software group Baltimore Technologies has delivered a solid if pedestrian set of third-quarter results, with sales and losses in the middle of the range of forecasts from Dublin and London analysts.

Revenues for the third quarter rose 24 per cent from the second quarter to £20.1 million sterling (€33.44 million) while losses before interest, tax, depreciation and amortisation (EBITDA)rose to £7 million from £4.4 million. But this is lower than market forecasts of EBITDA losses of up to £10 million sterling. The results triggered some heavy trading in Baltimore shares, which initially rose as high as £5.34 sterling before finally settling back to close 8 1/2p higher on £5.23 1/2 sterling.

Chief executive Mr Fran Rooney said: "This has been another very successful quarter. We have tripled our revenues from last year and 60 per cent of revenues are now from outside Europe compared to 12 per cent last year." He added that the computer security market could be worth $3-$5 billion by 2005 and that Baltimore aimed to secure about a quarter of this market. During the third quarter, licence revenues increased by 28 per cent to £10.3 million sterling and now account for 51 per cent of total revenues. Licence revenues for the year to date total £23.5 million sterling, almost three times those of the third quarter of 1999. Gross margins for the third quarter rose from 64 per cent to 66 per cent.

Sales in the key US market now make up 30 per cent of the total, compared to 26 per cent in the second quarter and 18 per cent in the first quarter.

But analysts in Dublin and London voiced contrasting views about Baltimore's results. ABN Amro analyst Ms Jemma Houlihan described them as "solid but unexciting" and said the fourth quarter would be a bumper period for sales.

Davy is forecasting sales of £72.5 million sterling this year followed by £146.7 million in 2001. It is forecasting negative EBITDA of £31.3 million, falling to £11.9 million in full year 2001.