Revenues equaled EUR1.42 million, in line with the third quarter 2003 results but 18% lower than revenues recognised in the period ended June 30, 2004. Ebidta losses before restructuring costs reduced to EUR635,000 from a loss of EUR1.17 million in the year ago period.

The net loss for the third quarter was EUR875,000, a reduction of EUR500,000 from the third quarter 2003, but an increase of EUR364,000 from the net loss in the previous quarter.

Rocco Pellegrinelli, CEO of Brainpower, says revenues were in line with seasonal trends. He is anticipating a robust year-end and break-even in the fourth quarter as the firm starts to see tangible results from efforts to license and sell products through third parties, including Reuters.

Says Pellegrinelli: "Selling through a network of global partners is part of our core strategy and we believe that in 2005 we will be able to record a significant contribution in terms of revenues from the various partners with whom we do business."

Cash used in operations during the quarter of EUR640,000 was marginally lower than the previous quarter and in line with cash used in the third quarter of 2003.

Bill Holwell, chief financial officer of Brainpower comments: "Whilst the company has sufficient funding in place to cover expected future cash outflows, we are currently assessing other sources of funding to ensure that the company has sufficient strength to expand successfully in the future."

Brainpower's cash position as at 30 September, 2004 was EUR188,000 compared to EUR1.5 million at the end of the third quarter 2003.

As of 30 September, 2004, the company had drawn down EUR1.1 million against its credit facilities. The company also has credit facilities available of up to EUR950,000 based on a percentage of its qualifying accounts receivable balances. By the end of Septmber, the company had EUR43,000 outstanding against the facility.