A SOFTWARE company is set for a major expansion after clinching £5m in new deals.

Software developer Techtonik, based at the North-East of England Business and Innovation Centre (BIC) in Sunderland, has won big contracts from major players in Europe, the US and Australia.

Turnover has mushroomed from £650,000 last year to £5m in the last quarter alone.

The firm is in discussions with Bill Gates' Microsoft empire and is hoping to become a preferred partner in the software giant's ASP programme.

Peter Johnson, Techtonik's managing director, said: "After years of development work, we are now reaping our just rewards, with these distribution deals turning over £5m in the last quarter of this year alone."

The orders are for the firm's Oneapp group of products, which supports software rental companies in controlling and auditing large computer networks, and ensures that users adhere to licensing agreements.

The company has exported 20,000 licences to major firms across the world, such as Hutchinson Telecom of France and Reuters news agency in the US. It also has a major Government contract in the UK.

New contracts in the pipeline include high-profile companies such as Fujitsu in Sydney and Melbourne-based IBM, both Australia. The firm also hopes to break into the IT markets of the Far East and Asia.

Techtonik was set up at the BIC four years ago with two staff. It employs eight workers and is looking for three more software developers.