Shares in the Baltimore Technologies, the former high-flyer, gained ground yesterday after the company said it would report half-year results in line with expectations next month.
Once a darling of the Internet sector with a FTSE 100 listing and shares worth £15 sterling each, the company's stock finished 27.12 per cent stronger at 7.5p yesterday on the London exchange.
The troubled security software company, which has made hundreds of staff redundant, said in a statement yesterday that it was making good progress in a restructuring programme.
It would continue to reduce the cost of sales through maximising operational efficiency".
After stating two months ago that it would become earnings positive before it ran out of cash, the statement yesterday said its net cash balance on June 30th was £23.06 million (€36.71 million), excluding about £1 million still to be received from CGI Ltd, a Japanese investment fund which acquired most of the stake in its Japanese subsidiary.
The company said it expected to report sales of £21.5-£22.5 million in the six months to the end of June on September 10th.
Its chief executive, Mr Bijan Khezri, said: "We have made very real headway in rationalising the business during this half year, yielding significant cash and heavily reducing the ongoing working capital requirements of the business."
He added: "Together these two factor have strengthened our financial position enabling us to focus on our core business of authentication, digital signing and authorisation technologies."
The company, which first restructured 12 months, lost €1.1 billion last year.
With cash reserves of £21.2 million last March, analysts had queried whether it would be able to survive until it made a profit.
It expects to break even by the first quarter next year after a period of significant difficulty which saw the departure in July last year of its chief executive, Mr Fran Rooney.
He received compensation of €1.1 million from the company after his resignation. Earlier this year the company admitted it had overstated revenues at its Japanese subsidiary by €2.5 million.
It was the second admission by the company of overstated revenues in India, the Middle East and Africa.
The company has made asset disposals worth €47.6 million in the past 12 months, realised €1.59 million from property sales in Britain and closed several overseas offices.
