Artix performs well for Iona in difficult first quarter

30 Apr 2008

Iona has reported Q108 revenue of US$16.4m, a 6pc increase on Q107, yet posted a net loss of US$5.1m for the quarter.

On a US GAAP basis, this amounts to a loss of US$0.14 per share.

Net loss includes SFAS 123R share-based compensation expense of US$0.6m, amortisation of purchased intangible assets of US$0.2m and a restructuring charge of US$1.5m, Iona said.

Excluding these factors, net loss for the quarter was US$2.8m or US$0.08 per share.

Artix licence revenue increased 31pc year-over-year during the quarter, and CORBA revenue exceeded expectations with a 5pc year-over-year decline.
“I am pleased with our first quarter performance,” said Peter Zotto, CEO, Iona Technologies. “Despite a difficult economic environment, Artix licence growth of 31pc was strong, indicating the growing strength of the Artix product line.

“Corba revenue exceeded our expectations and the Fuse Open Source product line continues to add new customers to Iona’s expanding base. We are currently on track to meet our 2008 revenue plan.”

“Our first quarter performance provides a solid foundation for growth in 2008,” said Christopher Mirabile, CFO, Iona Technologies. “The cost reduction plan was aggressively implemented and we are continuing our focus on tightly managing operational expenses.

“Our expense run-rate has now increased to include advisory fees associated with the board’s evaluation of strategic alternatives for Iona. In addition, the current weakness of the US dollar is expected to have a continued negative impact on our operating profit.”
Iona expects total revenue for 2008 to be in the range of US$80-$85m.

The company expects total expenses for 2008, including cost of revenue, operating expenses, share-based compensation, amortisation, restructuring incurred to date relating to the restructuring announced in January and expenses incurred to date relating to the board’s evaluation of strategic alternatives (“evaluation process expenses”), to be in the range of US$79-$81m.

By Niall Byrne