Iona returns to profit following strategy change

Iona Technologies has moved back into the black, posting a $758,000 (€585,000) profit in 2004 after an overhaul of the business.

Iona, which provides and develops IT integration solutions, made a loss of €43 million the previous year. Announcing last year's reversal of fortunes yesterday, Iona chairman Dr Chris Horn said he was "quietly optimistic" for even more success in 2005.

"Our cost base is well-managed, and continued growth from Artix should further improve our bottom-line performance," he said.

Artix is Iona's new generation of integration solutions. Dr Horn said this product has been a significant and growing part of its revenues.

After tax, the group recorded profits of $192,000. On US accounting principles, Iona reported net income of 5 cent per share. Iona Technologies shares traded lower in Dublin despite the positive news, with the market generally weaker. The shares closed 28 cent weaker at €4 yesterday.

Looking forward, Iona said that first-quarter trading is seasonally down on the fourth quarter of 2004 and, in the past, this decrease has been of the order of about 25 per cent. This year, though, it expects a better performance, guiding that total revenues will be in the range of between $16 and $17 million, based on product growth revenues of between 10 and 20 per cent.

It expects that total expenses for the first quarter of 2005, including the cost of revenue and operating expenses, will be in the range of $16 million to $17.5 million.

Meanwhile, Iona's Artix product was named by SearchWebServices.com, an online resource tool for IT professionals, as product of the year. It was selected from over 50 individual Web service products and the award is viewed as a significant development for the group.

During 2004, its CORBA technology continued to be its core business and performed well and as expected, the company said.

Dr Horn said he was delighted its execution of a new strategy for the group, announced at the beginning of 2004, has improved its performance, generated profits for the year and enhanced its cash position to the benefit of its shareholders.

Iona increased its cash balances to $60 million, up $6 million from the third quarter of last year. Artix revenues grew by 20 per cent in the last quarter and Iona sold that product to customers including Beijing Mobile, BellSouth, Marconi, mmO2, Reuters and SBC.