US-based 3D software and content specialist DDD Group reduced its loss from £2.12 million to £1.87 million last year.

Bombed-out DDD, whose head office is in Santa Monica, California, increased turnover eight per cent to £322,000 in 2004 and is expanding its licensing relationship with Sharp of Japan for its second generation 3D notebook PC, according to chairman Paul Kristensen. DDD now boasts cash reserves of £1.1 million following an investment by Tokyo-quoted Arisawa Manufacturing, which now has a 20 per cent stake in the AIM-quoted company.

Kristensen and chief executive officer Chris Yewdall says revenue growth from the Desktop and PC 3D Displays platform offset a 'disappointing decline in revenues from the Public Space Entertainment platform'. Converting from weakening US dollars into pounds cut revenue growth from 22 per cent to eight per cent.

Looking ahead, DDD hopes to build up Japanese revenues and to use a growing interest in mainstream 3D displays to expand into 'higher margin development and licensing agreements', such as its agreement with Arisawa to develop a hardware version of the company's real-time 2D to 3D software solution. Floated at 65p in 2002, DDD shares are up a modest 0.25p today at 9.38p.