Iona predicts Q2 revenue decline

1 Jul 2004

Iona Technologies warned markets today that it expects revenues for the second quarter of 2004 to be in the range of US$15m to US$15.5m, down from US$16.4m reported for the same period last year and down from US$16.8m reported in the first quarter. The company predicts a net loss for the second quarter to be in the range of four cents to six cents per share.

Iona’s chief executive Chris Horn (pictured) blamed the decline in revenues on lower than expected adoption of new products like its Artix web services family.

“Iona is a strong company in the midst of a new product cycle with Artix,” said Horn. “Customers continue to gain unique business value with their use of Artix, however, market adoption of new technologies has been slower than expected.

“We are confident that Artix will be successful in the marketplace over the long term and have strengthened our partner network, launched an integrated developer program and hired experienced management to key positions in the company. We have built a strong foundation and are confident that Iona can build enduring value for our customers, partners and shareholders.”

Accordiing to Iona’s chief financial officer, Dan Demmer, the company is focused on pushing its new product cycle whilst still maintaining a leadership role in the Corba middleware market.

“With approximately US$53m in cash and marketable securities on our balance sheet, and a stable cost base, we are well positioned to achieve sustainable performance over the long term,” Demmer said.

By John Kennedy