UK web pioneers post improved financials

Knowledge management company Autonomy, one of the UK's most respected web-related startups, has recorded its second profitable quarter in a row, while travel website Lastminute.com has reduced losses.

Autonomy, spun out of a company started on the back of a £2000 loan nine years ago, recorded a pre-tax profit of $3.39m for the three months to 30 June, compared with a loss of $18,000 for same period last year.

It represents a quarter-on-quarter increase in pre-tax profit of $3m on Autonomy's first quarter earnings of $346,000. Revenue beat analysts' expectations by more than eight per cent, up by 174 per cent on this time last year to $14.6m, and up $2.9m on its first quarter results.

Mike Lynch, Autonomy chief executive, said: "The second quarter of 2000 was one of focused execution and strong performance for Autonomy worldwide. We continue to drive our international expansion, securing a significant contract with Hutchinson Whampoa's Tom.com, the largest portal site in China.

"Going forward, we will continue to execute our strategy of driving our business into new markets, business sectors and industries, as well as leveraging our technology into new applications via indirect distribution channels."

Among others, Autonomy has added PepsiCo, Deutsche Bank, Sun Microsystems, Razorfish, the US Department of Energy, Clerical Medical, Hewlett Packard, Compaq and Agency.com to its client roster.

Meanwhile, the stock exchange-listed travel and gift website Lastminute.com has reduced its quarterly losses to £9.27m during the three months ending 30 June, from £11m in the first quarter. It also said July, not included in the results, had been its strongest month yet. Second quarter revenue was £1.02m on turnover of £9.6m.

Lastminute said it now has more than two million registered subscribers and had £117m in cash reserves at the end of June, enough to fund the company for another three years should losses continue at current levels.

Brent Hoberman, chief executive at Lastminute, said: "From this base, our plans for continued expansion in the UK and abroad through the continual diversification of our product offering and distribution channels give us considerable confidence as we look ahead."