Route1 Inc.’s second-quarter loss narrowed as its revenue ballooned more than eight times, helped by its deal with the U.S. Department of Homeland Security.

The security and identity management provider said yesterday it generated a revenue of $1.6 million ?compared with $185,000 in the same period a year ago. The company received a payment of $500,000 US?during the quarter from its $8-million deal US?with the department, through Qwest Communications International Inc.

Route1 posted a loss for the April-June period of $620,000 or nil a share compared with a loss of $1.7 million or nil a share.

“I am extremely pleased with our progress in the second quarter, with record revenue, and activated keys in the hands of our large customers,” stated president and chief executive Andrew White.

“We continue to execute on delivering our groundbreaking identity-based services and technology to the U.S. Department of Homeland Security and Qwest, as well as other international governments and organizations. The growing adoption of Route1’s technology has given us strong momentum as we have entered the third quarter.”

The deal with Qwest will see Route1 deliver a minimum of 30,000 MobiKEY security equipment and 30,000 TruOFFICE subscription-based services.

During trading on the TSX Venture market, shares of Route1 rose half a cent to 9.5 cents.