Iona Technologies will take a one-time restructuring charge of up to $8 million (€8 million) as part of its cost-reduction programme.

The company, once a doyen of the tech sector, has undergone a major consolidation process. Last night its chief executive, Mr Barry Morris, said the company was disappointed with its preliminary results for the second quarter to June 30th.

Iona said it expected to report revenue of $26.5 million for the second quarter and a net loss per share of up to 88 US cents for the same quarter. Mr Morris said he was taking "appropriate actions" to "navigate Iona successfully through these challenging times". He added that Iona had a cash balance of around $100 million.

The company had already warned that the second-quarter revenues would not meet expecations. It had reported first-quarter revenues of $39.5 million (€44.46 million) in line with expectations, but this was down from $42.7 million the previous year.

Iona's chief financial officer, Mr Dan Demmer, said the company was aligning its resources "with a very challenging economic environment".

"We will continue to demonstrate the fiscal and operational discipline required to successfully execute our strategy in these difficult times," he said.

Iona shares closed at $5.13 in New York last night, down almost 4 per cent.