Iona income up 27pc

20 Jul 2006

Irish software player Iona this morning reported a 27pc increase in second-quarter revenues yielding US$17.7m for the company, driven by strong demand for its Artix product line.

However, the strong sales performance didn’t yield a profit for the company, with losses of US$200k reported for the second quarter.

The company said that net losses were influenced by a stock-based compensation expense of US$1.2m.

Iona’s chief financial officer Bob McBride said this quarter was the first in five years that Iona achieved sequential second-quarter revenue growth. “For four straight quarters we have achieved year-on-year product revenue growth and positive operating margin,” he said.

McBride said Iona believes it has its financial fundamentals in order and is well positioned to execute its strategic plan going forward.

The company ended the quarter with a US$55m balance in cash and securities.

A particular highlight of the quarter was the 128pc year-over-year growth in sales of the company’s Artix product line for service-oriented architecture (SOA) which Iona targets at Global 2000 companies.

Iona’s CEO Peter Zotto said that Iona’s SOA product strategy was achieving broad industry recognition. “Forrester Research recently identified Iona as an enterprise service bus ‘leader’ and we continue to forge new global partnerships and important strategic industry relationships.

“Leading systems integrator Wipro selected Artix as powerful SOA-enablement software that can help their customers achieve business agility.

“Our commitment to open standards and the open-source development model has led to collaboration with leading organisations such as JPMorgan Chase, Cisco and Red Hat, among others, to create a new specification called the Advanced Message Queuing Protocol (AMQP) for developing open, standards-based messaging infrastructure,” Zotto said.

By John Kennedy