Iona turns a profit on higher revenues for Q3

19 Oct 2006

Iona Technologies has reported third-quarter revenue of US$20.3m, a rise of 17pc over the same period a year ago.

Unlike in Q2, Iona also managed to turn a profit of US$500k in the most recent quarter. Net income and earnings per share in the third quarter of 2006, excluding US$1.3m of a stock-based compensation expense, was US$1.8m. Revenues for the second quarter had been US$17.7m.

Peter Zotto, CEO of Iona Technologies, noted that the company had seen significant growth in revenues of its Artix product line, with sales increasing by 114pc year on year. Overall, product licence revenue grew by 25pc compared to the same quarter in 2005.

According to Bob McBride, Iona’s chief financial officer, this is the fifth quarter in a row that the company has recorded year-on-year product revenue growth and positive operating margin. “Iona’s third-quarter results firmly demonstrate that the leveragable business model we have in place is working as designed,” he said. “Our sales force productivity increased in the third quarter and we are pleased with the overall progress of our sales organisation. We have a solid financial foundation in place that positions us well for ongoing success.”

By Gordon Smith