Baltimore Technologies reported a drop in revenues for the first half of the year and said more staff cuts are likely as it aims to break even by the end of the year.
In the six months to June, total revenue was £9.7 million sterling, down from £22.1 million in the first half of 2002 mainly as a result of divestments over the period.
Revenues from continuing operations fell 29 per cent to £9.3 million due to lower licence fee revenue for its security software and professional services.
The company which put itself up for sale earlier this year reported adjusted loss per share of (10.7p) compared to a loss of (49.4p) in the first half of 2002.
Staff numbers have been cut to 255 from 422 in the past 12 months, and the company warned more cuts were likely as tries to temper its "cash burn" in the second half of the year.
Baltimore held cash reserves of £14.6 million at the end of June compared to £23.1 million at the same time last year.
Baltimore said it is targeting operating cash flow break-even by the end of the year and will continue generating cash through divestments.