Profitable third quarter for Iona

18 Oct 2007

Irish Nasdaq-listed enterprise software player Iona Technologies today reported profits of US$3.1m on revenues of US$24.2m, which were up 19pc on last year.

The middleware company, which has nailed its colours firmly to the SOA (service oriented architecture) market, would have reaped profits of US$4.6m but had to shave US$1.3m in share-based compensation and amortisation of US$200,000 on intangible assets to meet regulatory requirements.

Iona’s move into the SOA market with its Artix product line is proving fruitful with license revenue from the product rising 82pc driven by demand from Global 2000 customers.

“We achieved strong operating margins, cash flow, and revenue growth in the quarter,” Bob McBride, chief executive of Iona said.

“Year to date our cash flow from operations has grown our cash and cash-equivalents by US$4.8m to US$58.8m, even after funding two acquisitions earlier this year. Those acquisitions have now been successfully integrated, and our expenses remain under tight control.”

The company’s original Corba middleware product is also understood to continue to be a solid contributor to the company’s revenue base.

Looking ahead the company is anticipating demand for its Fuse family of open-source products which it says received positive market reviews.

“I am pleased with the 19pc overall revenue and 25pc license revenue growth coupled with the continued growth of our Artix business,” Iona chief executive, Peter Zotto said.

“Artix license revenue growth was 82pc, driven by our Global 2000 customer base in our key verticals, including for example, Citigroup, DZ Bank, Poste Italiane and Nokia,” Zotto, continued. “Corba continues to be a significant contributor to our cash and profits with revenue at a better than expected rate of decline of 8pc.

“We added enterprise level capabilities to our FUSE family of open source SOA products, building upon the already strong brand and technology gained from the LogicBlaze acquisition.

“Fuse, together with our expanded Artix product line, which now includes industry leading data services and registry/repository capabilities, is providing an expanded customer reach and creating new opportunities for Iona,” Zotto concluded.

By John Kennedy