Communications, yesterday released healthy results for its 1999 fiscal year.

Net income for the year ending March 31 rose 17 percent on last year's results due to a "strong demand for the company's array of services and containment of operating costs'', KeyTech bosses said in a statement.

And the good news could bolster KeyTech shares which are listed on the Bermuda Stock Exchange and suffered a $4 tumble on Monday before closing at $24 where they have remained since then.

Revenues were also well up, from $69 million last year to $82 million.

But total operating expenses reflected that increase and rose from $56 million last year to $67 million in 1999.

The company's statement said the increased revenue was due " in large part to the continued increase in service demand, as well as a full year of operations for Logic''.

KeyTech's growth during the year and the rise in the company's weighted average earnings per share to $7.70 from $6.32 in 1998 were attributed to the growing popularity of cellular phones.

A sale of foreign currency and Bermuda dollar investments saw KeyTech produce a $1 million gain but it is not expecting a similar experience in future years.

KeyTech increased its capital expenditure in 1999 to $25 million compared with $19.6 million last year, the results showed.

"The company will continue to make substantial capital investments to meet the growth needs of our customers in the future and to provide advanced telecommunications solutions,'' the company said.

"KeyTech's mix of revenues will vary significantly for the financial year 2000.

"The introduction of competition in both the local and international markets has seen, and will continue to see, traditional subsidies removed.

"Prices of services will be affected by market forces as well as the cost of providing these services.

"As we go forward KeyTech will establish new partnerships and alliances that will add flexibility and growth to core businesses.''