Shares in e-learning group Smartforce rose sharply on the Nasdaq after the group reported second quarter results ahead of market forecasts and increased its revenue and earnings targets for 2001 and 2002.

In heavy Nasdaq trading, Smartforce closed up 24.5% on $37.

Quarterly sales of $66 million (€77 million) were ahead of Smartforce's target of $64-$65 million, while net income before goodwill was $3.6 million, 20 per cent ahead of consensus analyst forecasts. The $3.6 million net income for the second quarter compares with a loss of $7.6 million in the same period last year.

In the six months to the end of June, the group nearly doubled its revenues to $127.4 million, and net profits of $5.9 million compared to a 2000 half-year loss of $17.7 million. Chairman and chief executive Mr Greg Priest said: "That we were able to achieve these results in the current difficult market environment is particularly gratifying."

The prospects for the next 18 months are also positive, with Smartforce increasing its target 2001 revenues from $265-$270 million to $270-$272 million and its earnings target from $0.30 to $0.32. For 2002, the group is targeting sales between $370-$380 million and earnings per share of $0.72.

For the third quarter of the current year, Smartforce is expecting sales of $68-$69 million and earning per share of $0.08 to $0.09. For the fourth quarter, sales are targeted to grow to $75$76 million and earnings per share to $0.12 to $0.13.