E-learning company SmartForce has announced an increase in revenues and a decrease in losses for the second quarter of the year.The company said, although trading in the period was challenging, "there were several positive developments that suggest the fundamentals of the company's business are stabilising".

SmartForce said revenues from new business signed during the quarter increased 31 per cent compared with the previous quarter.

Total revenues in the quarter increased to $44.4 million (€44.1 million) from $43 million in the previous quarter.

The group's second-quarter losses improved to $0.15 per share before acquisition-related charges and restructuring charges, compared to its first-quarter loss of $0.26 per share before charges.

After restructuring and acquisition-related charges are taken into account during the period, the company's net loss was $37.7 million, or $0.66 per share.

SmartForce signed $4 million-plus agreements during the quarter, compared with two such contracts in the previous quarter. Chairman and chief executive Mr Greg Priest said the company was "encouraged" by its performance.

"We continued to experience a very challenging market environment. And the environment was made all the more challenging for SmartForce by the issues that we faced this quarter surrounding missing our first-quarter revenue and earnings targets, planning and making a major reduction in our staff, and planning the execution of a major merger.

"Notwithstanding all these challenges, we kept our eyes on the ball, and our performance stabilised and even improved modestly," he said.