Iona considers Aim as an alternative to Nasdaq listing

Iona Technologies yesterday confirmed it is looking at alternatives to the technology-focused Nasdaq exchange, with the Alternative Investment Market (AIM) in London the most likely candidate should it decide to move its listing.

At a press briefing in advance of its annual general meeting today, chief financial officer Robert McBride said the software firm was considering its options.

"Nasdaq is historically where we have been," said Mr McBride. "As a company that does half its business outside the US and half its business in the US, it's something that we have to consider very carefully. We're looking at it, and AIM is probably the primary option."

An Iona spokesman later said that it was not actively looking to move markets. While AIM has less demanding reporting rules than Nasdaq, as a public company that has a number of large US shareholders Iona would still have to comply with certain US regulations, which would reduce the cost savings achieved by moving the listing.

Iona chief executive Peter Zotto also provided an update on the company's progress as it attempts to grow revenues from new products. He said about 55 per cent of revenues next year would come from older products based on the Corba standard, 40 per cent from the newer Artix products that address the emerging service-oriented architecture space, and the balance from open-source products.

In contrast to traditional software, open-source products are free for customers to download. Revenues come from services contracts. Despite this, Mr Zotto said he did not expect Iona's staff numbers of 350 to grow significantly in the near term as it is focused on maintaining a steady cost base.

"The important thing is we have one line that is profitable, a triple digit growing new line of business and a third line that we've already made investments in and that we expect to start growing in 2007," he said.

Mr Zotto added that Artix and the open-source initiatives would enable it to win new customers and not just sell new products to existing customers. He expects the open-source products to sell in large volumes and would require a different business model based around telesales.

Iona's existing customers are mostly large telecommunications, manufacturing and financial services firms such as Boeing, Credit Suisse, ABN Amro and Ford.

Mr Zotto also pointed to Iona's strong balance sheet - the company has $55 million (€43 million) in cash and no debt.