Iona reports losses of US$2.8m

24 Apr 2007

Irish enterprise software player Iona Technologies reported losses of US$2.8m for its first-quarter results. The company reported revenues of US$15.6m for the quarter.

In recent weeks Iona predicted revenues of US$17m for the first quarter. However, according to a statement from the company it took the “conservative approach” of deferring the recognition of US$1.6m in revenue from an isolated and complex transaction that was paid in full by a customer during the quarter.

The company said that during the first quarter Iona had a cash flow of US$8.7m.

The quarter was marked by the acquisitions of service-oriented architecture (SOA) software companies LogicBlaze and C24.

The company predicted total revenue for the second quarter of 2007 would be in the range of US$20m to US$22m.

It also predicted that total expenses for the second quarter of 2007, including revenue costs, expenses and acquisition costs to be in the range of US$21.2m to US$21.7m.

“Demand for our products is strong and continues to expand,” said Peter Zotto, CEO, Iona.

“Iona’s customers, the large IT organisations typically found in global 2000 companies, are increasingly adopting SOA and we are well positioned to help them accomplish their goals. The consistent execution of our stated strategy continues to deliver real value to our customers and our shareholders,” Zotto added.

Iona’s chief financial officer Bob McBride said that while the deferred payment of US$1.6m affects the company’s profit and loss, it does not affect Iona’s cash flow.

“We increased our cash balance to US$56m, even after concluding acquisition activity in the quarter, which demonstrates the underlying strength of our financial position,” McBride explained.

“Our leverageable business model, combined with good cost control, will help to ensure that we have the financial resources to make the additional strategic investments required to continue to grow our business,” he added.

By John Kennedy