Shares in beleaguered 3-D software developer Superscape fell 3p to 21p today as the company served up its all-too familiar cocktail of tantalising business developments and hefty full-year losses, of £9.6 million. Elliott Davis reports.

Because of a change in its year-end, techMARK-listed Superscape (SPS) compares its £9.6 million loss in the year to January on a mere £1.9 million of sales, with a £4.3 million loss on £1.4 million of revenue in the six months to January 2001. Its cash reserves fell last year by more than £10 million to £11.3 million, sparking concerns about whether it has enough capital to take it through to profitability.

Chief executive Kevin Roberts insists 'we have enough cash for now'. But he does not rule out a return to the market at a later date.

Superscape, whose shares nearly reached £6 in March 2000, raised money at 440p in 1997 and has tapped investors for more than £31 million since January 1998. But it has yet to make a profit.

However management remains upbeat. Having changed direction several times in recent years, the company seems to have carved itself a niche in the provision of 3-D technology for wireless applications, ie mobile phones and Personal Digital Assistants.

Superscape has formed a partnership with chip giant ARM, meaning that the next generation of mobile phones will be able to run its software. It also offers a set of 'authoring tools', enabling third parties to develop applications and games to run off of these handsets, and is developing applications of its own.

Superscape has more than 40 non-disclosure agreements signed with 'many of the world's leading manufactures, operators and content/intellectual property companies'. Vodafone is one of these firms and Roberts hints that he hopes to unveil several more shortly.

House broker Investec Henderson Crosthwaite forecasts a £6.4 million loss from £4 million of revenue for the current year. The company itself expects the real growth to come in the year to end January 2004.