Product revenue at Iona rises 7%

Iona Technologies, which provides and develops IT integration solutions for companies around the world, saw its product revenue increase 7 per cent in the first quarter of the year, helped by strong demand for its new Artix product.

In a statement released yesterday, Iona reported a net loss for the three months to the end of March of $621,000 (€503,000), compared with a profit of $107,000 in the year-earlier period.

The figures were distorted by changes to accounting regulations which required Iona to take a written charge of $1.4 million relating to stock-based compensation. Excluding this expense, first-quarter net income was $800,000, up from $100,000 in the year-earlier quarter, the company said.

Total revenue in the period increased 3.4 per cent to $16.9 million.

Chief executive Peter Zotto welcomed the results, saying that they reflected the ongoing turnaround of the technology company's fortunes.

In recent years, Iona has been forced to issue several profit warnings after a slowdown in sales of its products followed a turbulent period where the company branched out into non-core areas.

Yesterday's announcement marked the third consecutive quarter of year-on-year product growth.

Mr Zotto said he was particularly pleased with the take-up of Artix, the group's newest software product, which was introduced at the end of 2003 to complement its main Corba product line.

"We are on track to achieve our target of Artix contributing 30 per cent of fourth quarter revenue," he said.

Current sales of the product, which enable customers such as Dublin City Council and Irish Life Investment Managers to streamline their IT environments, are strong in the US and Europe and are just starting to take off in Asia, he said.

Iona, founded in 1991 in Dublin, said it expected revenue for the second quarter to be $16-$17 million. Total expenses for the period will be $17.8-$18.3 million, it said.

The shares were up 4.18 per cent at $4.49 on the Nasdaq at the end of trading yesterday.