Iona reports 35pc revenue increase in fourth quarter


21 Jan 2004

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Irish middleware player Iona Technologies has revealed a 35pc rise in revenues over the previous quarter, dashing analysts’ expectations.

Revenue for the quarter totalled US$23.4m, above analysts’ estimates of US$19.2m, as well as the company’s October projection of US$18.2m to US$20m. Iona also said it expects first-quarter revenue of US$16m to US$18m, compared with US$17m a year earlier.

For the 2002 fourth quarter, Iona had a loss of US$9.38 a share after charges, on US$30.9m in revenue. On a pro forma basis, per-share results were nil.

Iona Technologies said it was pleased with its fourth quarter, attributing improved results primarily to the launching of its Artix Web services-based integration product as well as a 74pc increase in product revenue growth over the third quarter.

However, product revenue declined to US$13.8m in the fourth quarter from US$19.7m a year ago. Service revenue also fell in the period to US$9.5m from US$11.2m last year.

“I am very pleased with our continued progress in Q4,” said Chris Horn, Iona CEO and co-founder. “There is growing interest in our customer base in using web services to reduce IT costs and complexity.

“The emerging Web services market represents a substantial IONA opportunity, for which Artix is well positioned. We announced Artix 90 days ago, and customer interest is growing. I am very satisfied that our Q4 accomplishments allow us to focus on our goals of sustaining CORBA leadership and ramping the Artix product family in 2004.”

As well as its financial results, Iona revealed the appointment of a new senior vice president. The company has named William B. McMurray to the position of vice president of worldwide sales. McMurray joins Iona with more than 20 years experience in international sales management, having served in vice president and director positions for organizations including IBM and Level 8, in Europe, the US, and Asia Pacific.

By John Kennedy