IT firms report strong results

21 Oct 2005

Yesterday saw a flurry of strong results and intriguing business activity from both local and international IT and telecoms firms. Home-grown software player Iona Technologies reported strong revenues of US$17.4m while Irish IT services firm Calyx acquired Cork-based QCL Technologies for €1.28m.

Reporting its third quarter earnings, Iona disclosed it made a net income of $0.01 per share going by US generally accepted accounting principles. The company said it achieved year-over-year total revenue growth of 6pc and 29pc growth in license revenue. It also revealed it ended the quarter with US$50m cash and marketable securities.

“Iona performed well in the third quarter. We achieved continued sequential growth in our Artix business and generated solid performance from our CORBA business,” said Peter Zotto, CEO, Iona Technologies. “With our CORBA revenue steady at last year’s third quarter level, and growth in Artix, Iona achieved profitability in the quarter.”

Another Irish firm shed a bullish light on the fortunes of the Irish IT industry. AIM-listed IT services firm Calyx, which emerged from Alphyra after a management buyout, acquired QCL Technologies Ltd, a Cork-based IT product and services company, for €1.2m in cash and shares.

The company will pay an initial 213,140 ordinary shares and €933,000 in cash for QCL. Further deferred payments of up to €150,000 is payable in cash upon the achievement of certain performance criteria. For the year ended August 2005, QCL reported revenues of €3.9m, with a loss before tax of €782.

In August, Calyx CEO Maurice Healy told that the company was planning to complete two acquisitions by the end of this year.

In other technology finance news, mobile market leader Nokia reported an increase in pre-tax profit to €1.2bn in the third quarter, slightly better than the market consensus of €1.1bn. The company predicted the overall mobile device market in 2005 to grow in volume terms, but it said expects the average selling price (ASP) to be lower. In the third quarter the ASP decreased to €102 from €108 a year ago.

Telecoms player COLT (City of London Telecom) reported a decline in turnover by 1.5pc to £311.8m sterling. However, it reported a 1.9pc increase in non-switched revenues for the quarter ended 30 September, rising to £123.3m.

By John Kennedy