Surfcontrol, the Cheshire internet software firm which relocated across the Atlantic in Silicon Valley with its products that monitor workplace web surfing, yesterday said it would hit sales targets of $36.5m (£25.4m) for the year.

While more than 80% of American hi-tech companies have given profits warnings in the last few months, Surfcontrol was able to report better than expected third quarter results and said it had yet to be hit by the US economic slowdown.

Turnover for the third quarter rose 200% to $11.1m, but the group's losses also widened as a result of its continued expansion programme.

The firm made a pretax loss of $60m in the nine months to the end of February, up from $16m last year.

"Since the period end, trading has progressed well and we believe that we will have a successful outcome to the full year", said Steve Purdham, the chief executive.

Surfcontrol's shares, which dropped 112.5p on Tuesday, jumped 22.5p to 345p.

Analysts were upbeat about the results; one described the figures as a "cracking set of numbers" and said investors should take advantage of the company's present weak share price.