Hostopia says its revenues increased by 29.8 percent to $7.3 million in the three months ended December 31 compared to the same period last year. Sequential revenue growth in the third quarter was primarily due to the migration of 28,000 end users onto the Hostopia platform in the previous quarter as well as the net addition of 8,000 end users this quarter. Two website template license contracts also contributed to the growth, says the company.

Hostopia also announced the launch of new Nexthaus mobile data synchronization applications this quarter and closed nine new customer contracts for Web services, templates and mobile sync services.

"Telecoms today are looking to expand into the high-growth Web services industry," says Colin Campbell, CEO of Hostopia. "Hostopia is uniquely positioned to assist telecoms in this market with its comprehensive suite of value-add services that support small businesses who want to earn additional revenue using the Internet. New and planned additions to our suite of services include Website Experts, Mobile Sync and digital fax to email. All of these services will support future revenue growth."

Nexthaus, the SyncML technology unit of Web hosting provider Hostopia, recently released its latest wireless mobility data synchronization application, SyncJe, for Palm OS.