Baltimore hit by US worries

Baltimore software has m-commerce applications

Shares in Baltimore Technologies slid 10% on Wednesday after the security software firm warned it would be hit in the short-term by economic slowdown in the United States.

The share price fall came despite a confident statement about full-year prospects and annual results that were better than analysts had expected.

The damage was done by a statement from chief executive Fran Rooney in which he said: "Along with other technology vendors we are aware of a potential short-term impact of the downturn in the US economy."

Baltimore, 2000 vs 1999

Revenue £74.2m vs £23.3m

Operating loss £101m vs £33.3m

Pre-tax loss £94.2m vs £31.4m

Employees 1,185 vs 480

The shares closed at 282 pence, down from 311.75p at Tuesday's close.

Mr Rooney went on to say: "However, we remain confident about our full year prospects and growth towards profitability."

Revenues in 2000 tripled to £74.2m ($110.9m) while wider pre-tax losses of £94.2m were reported.

Both figures improved on market expectations.

Revenue spread

In a later conference call, Mr Rooney downplayed any Baltimore exposure to US economic slowdown.

"Our competitors will suffer more than we will, since they're very dependent on the US for their business.

"Our geographical spread of revenues is strong."

He said Baltimore derived less than one quarter of its revenues from the US despite several substantial US acquisitions last year.

Baltimore shares have had a rocky ride over the past year, trading in a range of 290-1,375p in 2000.

The company dropped out of the elite FTSE 100 index last December.