Horn returns to troubled Iona as chief executive

Three years to the day since he announced he was stepping down as chief executive of Iona Technologies, Dr Chris Horn has again taken up the reins at the troubled technology company.

Iona said yesterday that Dr Horn, who co-founded the company and had retained the role of chairman, would resume the chief executive's role with immediate effect. He replaces Mr Barry Morris, who has resigned saying he felt it was time "to move on to a new challenge".

In a wide-ranging reshuffle of its top management team, Iona said that its chief operating officer, Mr Steven Fisch, who only joined the company last August, and its executive vice-president of corporate development, Mr David James, had also resigned.

While the men will not qualify for the "golden parachutes" for which they would have been eligible in the event of a takeover, Dr Horn said they would receive "a fair severance package" in line with industry norms.

He said the changes had come about because the board felt strongly that "it was time for a new management team ... to re-energise and re-invigorate the company".

Dr Horn, who still holds a 7.2 per cent stake in Iona, will relinquish the role of chairman to Mr Kevin Melia, an Iona board member since 1994 and a former chief financial officer of Sun Microsystems. While Mr Melia is based in Boston, Dr Horn will remain in Dublin, which will continue to be the company's headquarters.

He is currently engaged in an analysis of Iona's business and structures, including the plans of the previous management team to cut at least 168 jobs in a bid to return to profitability.

Dr Horn said he did not yet know whether Iona would have to cut more, less or the same number of jobs as in the existing plan but expects the issue to be decided by the weekend.

However, he said there would be no change to the company's financial guidance to the market with Iona continuing to aim for a return to profitability by the end of this year at the latest.

The news came as little surprise in the market with analysts welcoming the changes as "positive" and "good news" for the company.

"The previous management had overseen three profit warnings and had failed to develop a new strategy for the company over and above what Chris had developed," said Davy analyst Mr Barry Dixon. "It's positive for Iona that he's back though he has a difficult job ahead of him."

Iona shares, which had risen by 18.5 per cent since the start of May amid expectations that something was afoot, closed five cents lower at €1.55 in Dublin last night.