TORONTO (CP) - Bioscrypt Inc., a provider of identity verification technology, narrowed its losses in the latest quarter on a 50 per cent jump in revenues.

The Toronto company reported Wednesday it lost $1.22 million US or two cents a share for the first quarter ended March 31. That compared with a loss of $1.32 million US or three cents a share for the same 2004 period.

Quarterly revenues rose 50 per cent to $3.5 million US from $2.34 million last year.

"Our strong first quarter sales carry forward the momentum of the second half of 2004 and reflect the improving strength of the biometric industry and our ability to leverage our position within it," said Robert Williams, president and CEO of Bioscrypt.

"With these results we have reached a new benchmark in that for the first time in our history first quarter revenue is greater than our third quarter prior year results. We believe this indicates a new level of maturity of the commercial biometrics industry, a market we are confident will show continuous sequential growth in time."

Bioscrypt said it expects revenue growth of between 40 and 50 per cent for the year.

The financial results include the operations of Cognizance Corp. from March 3, the date when Bioscrypt acquired the company.

Bioscrypt (TSX:BYT) sells identity verification technology such as fingerprint-based biometrics for secure access to buildings, equipment and computers.

In Wednesday trading on the Toronto Stock Exchange, Bioscrypt shares rose six cents to close at $1.83.