SMARTFORCE, the e-learning group, has recorded better than expected results in the second quarter to June 30th, 2000, with a net loss per share of 15 cents compared with an estimated loss of 17 cents.
Although revenue fell to $36.4 million from $47.2 million due to the changed nature of its business, it significantly exceeded analysts' estimates.
The company said it had record committed contracts of $256 million, well above the targets and a 15 per cent sequential increase over the $222 million in the first quarter.
Mr Greg Priest, the company's president and chief executive officer, said: "Customers continue to adopt SmartForce e-learning at rates far in excess of our original expectations, allowing us to generate a substantial backlog as the base for future business growth."
The backlog of contracts by the end of the year should be $350 million, Mr Greg Priest said, and this would feed into 2001 and 2002. In actual growth terms, he added, the company was growing at about 30 per cent compared with 20 per cent last year, indicating an accelerated growth.
In the first quarter of 2001, the company should be "just over" a break-even position in earnings and a return to profits was expected for that full year.
SmartForce has also announced the signing of a $4.5 million agreement with Sistemas CBT, a Grupo Cepra company, to market, distribute and support its e-learning solutions in Mexico, Puerto Rico, El Salvador and Guatemala. SmartForce also said Precision Portal will become its exclusive Malaysian distributor under a $1 million distribution agreement.
The group's results for the first six months show a fall in revenue from $87.4 million to $64.9 million and a loss before tax of $23.6 million compared with a profit of $2.2 million in the first half of 1999.
