Xero, which makes web-based accounting applications for small businesses, has gotten a lot of buzz in the American market but isn't yet a force here. However, the New Zealand company says it is ramping up infrastructure to support 1 million end users. That came as it narrowed its loss while more than doubling revenue for the six months ended September 30.

Xero noted it opened a San Francisco office and relocated staff there. It had hired Sage veteran Jamie Sutherland as managing director of its North American operations. He was scheduled to take over the position on October 1 as Xero made its first formal entry into this country. Meanwhile, the company moved into a new headquarters in New Zealand to consolidate operations from its previous two buildings. It also said it had secured a technology and development grant from the New Zealand government that could be worth slightly more than $3 million over the next three years.

Most of Xero's revenue comes from customers in New Zealand, although it showed strong growth from the United Kingdom and Australia during the six months of the current fiscal year. While revenue in the rest of the world grew sharply, the increase was on a small base and reached around $300,000 in all other countries.