The public company reported revenues for the first quarter of $7.3-million, representing a 340 per cent over revenues of $1.7-million for the same quarter last year, and an 11 per cent increase over the fourth quarter of 2000.

"We continued to improve our operating performance in the first quarter, with high revenues, strong gross margins and lower operating expense ratios," said David Cooper, chief financial officer. "We are see increasing enterprise adoption of our mobile infrastructure software and services, and are reaffirming our earlier financial guidance for the fiscal year 2001."

Contributing to the company’s optimism is the debut of AvantGo 4.0, which includes enhancement to its M-Business Server, Lotus Notes and Microsoft Exchange, and AvantGo mobile Internet service that now serves 2.5 million registered users. The hosted network enables 1000 enterprises, including the likes of Toyota, Lexus, MasterCard, and Cathy Pacific to extend their brands, reduce customer service costs, and enhance customer loyalty, the company said.

The company said that it plans to ship Web-based solutions for RIM Wireless handhelds and Symbian-based devices, adding to its list of PocketPCs and Palm handhelds.

The optimistic tone was punctured by the announcement that 50 employees would be receiving lay-off notices. By cutting 15 percent of its workforce, the company hopes to trim costs in its general administrative sections in order to move closer to making a profit.