A company which is harnessing cutting-edge military technology to turn ceiling tiles and windscreens into loudspeakers has signed more than 200 licensing deals.

NXT, announcing figures in line with expectations, said it has almost completed efforts to develop from "a medium-sized hi-fi manufacturer to a global technology company".

DamlerChrysler on Thursday followed firms such as Akai, Phillips and Siemens in signing up to the firm's technology, which, through a 10 pence piece-sized gadget, allows certain surfaces, including plastic and glass, to act as loudspeakers.

The technology, which was discovered by scientists at the UK Defence Evaluation & Research Agency (Dera) in 1991 and used in the Eurofighter jet, will be fitted in Mercedes models being launched in 2004, NXT's chief executive David Pearson said.

Unique sound

"NXT speakers create a more spacious and uniform sound stage in the vehicle," he said. "Other top tier automotive companies are also evaluating the technology."

The systems, coupled with voice-recognition technology which will develop the ability of computers to obey human voice commands, will allow the company to achieve "long term, sustainable growth in revenues", Mr Pearson said.

Farad Azima, NXT chairman, struck a more cautious note, as the company reported an operating loss of �11.53m for the year ending 30 June, with revenues of �1.2m

"The risks relating to NXT as a high-technology business will always be with us," he said. "But with the accelerated advancement of our technologies, I view the company's prospects with increasing confidence."

Dolby role model

The company, which has been granted more than 450 patent applications, is basing its international business plans on strategies followed by Dolby, the globally respected sound-system innovator, Mr Pearson said.

NXT is in negotiation with a "number of multinationals" over collaborative projects, the company said.

One mobile phone giant is to use the technology as a space-saving device to allow screens on Wap phones to act as earpieces.

The BBC is to use the firm's speech recognition system to allow programmes to be subtitled automatically, avoiding the need for people to transcribe and input the data.