The Company also reported "significant strides" in its international expansion during the first six months of this year compared to the same period a year ago - as revenues from outside Germany grew six-fold to $23.48 million, or 59 percent of total revenues. Business in the United States was described as "particularly strong" in the first half of 2000, as the company reported revenues of $5.01 million, 12.6 percent of its worldwide total.

Brokat's licensing business also increased during the first half of 2000, as revenues grew to $18.73 million, a 147 percent increase over the comparable period in the previous year. A principal part of this gain occurred in the strategically important area of software licenses, says the company, which increased to $9.51 million, a threefold increase over the same period in the previous year.

In the second quarter of 2000, Brokat posted revenues of $21.05 million, a 72 percent increase over the same quarter in the previous year. Revenue from abroad increased by 341 percent over the same quarter in the previous year, from $2.46 million to $10.87 million. The United States accounted for $2.99 million or 14.5 percent of total revenues during the period.

Revenues generated through partners amounted to $5.22 million in comparison to $2.93 million in the same period last year.

Gross profit margin increased in the first six months of 2000 to 59.8 percent, an increase of 8.7 percent over the same period in 1999, a rise which Brokat attributed to inceases in the licensing business.

The results of operations EBITDASO (earnings before interest, tax, depreciation, amortization and stock options) amounted to a loss of $9.72 million in the first half of 2000, as compared to a loss of $4.54 million during the same period in the previous year. The figures were attributed to an expansion in the company's international business and an intensification of sales and marketing activities. Sales expenses decreased from 54 percent of revenues during the same period last year to 44 percent.

Because of the strong performance of Brokat stock in comparison to the previous year the non-cash expenses for the employee stock option plan increased by 199 percent, to $14.96 million. Amortization of goodwill from acquisitions amounted to $7.39 million compared to $1.96 million. Overall Brokat posted a net loss of $37.33 million in the first half of this fiscal year, as compared to $12.36 million during the same period last year.

Announced in June of this year, the planned acquisition of software firms Blaze Software and Gemstone Systems will increase Brokat's presence in the important United States software market. Both companies have a strong market presence, says Brokat, and their products expand and complement Brokat's core Twister product with the addition of up-and-coming technologies in the fields of customer relationship management (CRM) and Enterprise Java Beans (EJB).

Brokat is financing these acquisitions with shares from authorised capital. This will increase the number of Brokat shares by approximately 25 percent. At the same time, Brokat receives a growth in sales of 50 percent on the basis of the 1999 financial numbers of the two companies that are acquired. The three companies anticipate that closings will occur at the end of September. Once the acquisitions are completed, approximately 500 of Brokat's 1,200 employees worldwide will be in the United States.

Brokat also continued its international expansion in Europe. The Company created a subsidiary in Italy and made a $2.7 million investment in interest in a Belgian company, Customer Dialogue Systems. In April, Brokat formed a strategic alliance with the French IT company Bull.

In North America, the company won contracts with Charter One Financial and Toronto Dominion Bank of Canada. In Germany, Brokat added Westdeutsche Landesbank to its roster of clients.