Smart Online, a provider of software-as-a-service applications for businesses, reported a 28 percent jump in revenues for the quarter ending June 30.

Smart Online (OTCBB: SOLN) said income rose to more than $1.2 million compared to $940,000 in the first quarter of this year. The company also cut its losses to $1.2 million, or 7 centers per share, from $1.31 million or 8 cents in the first quarter.

The company reported 10,750 customers as of June 30.

“As we stated last quarter, we believe 2007 will be a strong year for the company as we have launched new channels that we expect to show continuous subscriber growth in the remainder of the year,” said Michael Nouri, chief executive officer and president of Smart Online. “I am pleased with how our team has handled this quarter and the positioning of the company as we continued our growth.”