Shares in Iona Technologies rose 9 per cent yesterday as it returned to profit in the third quarter and reported upbeat earnings forecast for the rest of 2004.
The software company made a $359,000 (€289,600) pre-tax profit in the three months to the end of September, up from a loss of $1.7 million reported a year earlier. This represents net income of one cent per share during the quarter.
The Dublin-based firm, which was the first big Irish software company to list in the US, generated revenues worth $16.5 million in the quarter, a slight reduction on the $17.4 million reported a year earlier.
Iona signed five new customers for its new Artix product in the quarter, which accounted for about 10 per cent of its total business. Most of its sales were of Corba, Iona's traditional core software product.
The decline in turnover reflects Iona Technologies restructuring activities in the last year following a restructuring, which also led to falling costs.
Operating expenses fell to $13.2 million in the third quarter, down from $16.3 million. Lower spending on sales and marketing and research and development accounted for this drop in costs.
About 40 per cent of Iona's revenue during the quarter was generated from sales to telecoms firms. Government sales were about 10 per cent of turnover.
In an outlook statement, Iona said it expected revenue in the fourth quarter to be in the range of $17 to $19 million. Operating expenses would be between $17 to $18 million in the quarter.
Mr Chris Horn, Iona's chief executive, said the developing and strengthening pipeline of sales for Artix was giving the firm confidence that it was well positioned for long term success.
Shares in Iona rose almost 10 per cent on the Nasdaq when it released its results in the afternoon. The stock closed up 35 cents at $4.65 last night in the US, which is Iona's major market.
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