Iona Technologies has posted strong third-quarter figures with revenues up 17 per cent to $20.3 million (€16.1 million), compared to the same period a year ago.

Strong product sales underpinned the performance. Sales of its newer Artix product line were up 114 per cent, with overall product revenues increasing 25 per cent to $11.7 million.

Iona chief executive Peter Zotto said he was "very pleased with the results" and the company was doing well in the three areas it is focusing on - Artix, the older Corba product line and its open-source initiatives.

"It's the fourth straight quarter of triple-digit Artix growth," said Mr Zotto. "Our operating margin, not including the stock option expenses, was 10 per cent, which is the first time we've had a non-Q4 double-digit figure for six years." Mr Zotto maintained that the cost structure he put in place means that operating margins will grow at a faster rate, the higher the company's revenues.

"If you take this quarter and annualise it, our operating margin would be 10 per cent for an $80 million year," he said. "Once we hit $100 million, the operating profit would be north of 15 per cent." Net income for the quarter was $0.5 million, or one cent per share, which included the $1.3 million cost of stock-based compensation for staff.

Artix has won Iona a number of high-profile contracts in the quarter, including a deal with Fujitsu Telecommunications Europe.