Iona reports net loss for Q3

19 Jul 2007

Iona Technologies has reported second-quarter revenues of US$19.8m (€14.34m), a 12pc increase year on year. The company posted a net loss of US$1.2m (€869,061), or $0.03 per share, due primarily to costs associated with expansion.

Net loss for the quarter included share-based compensation expense and amortisation of purchased intangible assets of US$1.6m. Excluding US$1.4m of share-based compensation expense and US$200,000 of amortisation of purchased intangible assets, net income and earnings per share in the second quarter of 2007 were US$0.4m and US$0.01 per share.

In the first half of this year Iona integrated its newly acquired businesses, C24 and LogicBlaze, and delivered new products developed by Iona and these companies. Iona introduced new Artix Data Services and Artix Registry/Repository products, signing new customers for both products during the second quarter.

Revenue from Artix products increased 53pc year on year.

Iona also launched a new version of the Artix advanced SOA (service-oriented architecture) infrastructure suite and launched the FUSE opern source family of products.

Bob McBride, chief financial officer with Iona, commented: “Cash flow from operations, aligned with deliberate and controlled cost expansion, funded our strategic initiatives, driving continued growth. All of this was accomplished while maintaining our cash balance at levels consistent with recent history. We continue to be strongly positioned to deliver sustainable growth and increase shareholder value.”

The company expects total revenue for Q3 2007 to be in the range of US$20-22m. It also expects total expenses for Q3 2007, including cost of revenue, operating expenses and the cost of share-based compensation, to be in the range of US$21.6-22.1m. Share-based compensation expense and amortisation of purchased intangible assets in the third quarter is expected to be approximately US$1.6m.

By Niall Byrne