Travel software specialist, Datalex, cut losses by over $7 million (€5.3 million) to $177,000 in 2004, the company said yesterday.

Dublin-listed Datalex reported a 5 per cent increase in revenues in 2004 to $30.5 million from $29 million the previous year.

Its e-business division was the only contributor to sales growth, posting a 13 per cent increase to $23.8 million from $21.2 million. However, turnover in its consulting business dropped by 5 per cent by the end of 2004 to $6.6 million from $7.8 million a year earlier.

The group also managed to keep a lid on the cost of sales, which fell 2 per cent to $19.3 million last year from $19.8 million in 2003. This helped boost 2004 gross profit by 21 per cent to $11.16 million from $9.2 million.

A sharp fall in operating expenses to $11.8 million from $18 million, left the company with an operating loss of $671,000, compared with $8.8 million in 2003. A year ago, the company reported an overall operating loss of $9.3 million. However, $500,000 of this was attributable to exceptional charges that did not recur in 2004.

Net interest income of just under $500,000 further eroded Datalex's deficit, to leave it with a loss before tax in 2004 of just $177,000, compared with $7.2 million the previous year.

Its loss per share dropped by over 90 per cent to 0.01 US cent from 0.11 cent.

Cash decreased by $3.2 million, broadly similar to 2003. Shareholders' funds remained virtually unchanged at $38.6 million.