Iona sees 19 percent revenue rise
18-10-2007
by Charlie Taylor

Irish software giant Iona Technologies has reported revenues of USD24.2 million for its third quarter, up 19 percent year-over-year.

The Dublin-based firm, which develops middleware and web services software, said on Thursday that net income for the quarter was USD3.1 million or USD0.09 per share, a significant jump on the year-ago quarter's net income of USD500,000, or USD0.01 per share.

Cash flow from operations was USD6.6 million for the third quarter bringing year to date cash flow to USD14.2 million.

Overall, license revenue growth rose by 25 percent. Iona said that license revenue from its flagship Artix solution increased 82 percent year-on-year on the back of deals with Citigroup, DZ Bank, Poste Italiane and Nokia. Meanwhile, Corba revenue was above expectations at an 8 percent year-over-year decline.

"We achieved strong operating margins, cash flow, and revenue growth in the quarter. Year to date our cash flow from operations has grown our cash and cash equivalents by USD4.8 million to USD58.8 million, even after funding two acquisitions earlier this year. Those acquisitions have now been successfully integrated, and our expenses remain under tight control," said Bob McBride, chief financial office at Iona.

Looking ahead, Iona said it expects total revenue for the fourth quarter to be in the range of USD20 million to USD22 million. The company said total expenses, including cost of revenue, operating expenses and the cost of share-based compensation is likely to be in the range of USD21 to USD21.5 million.

Also on Thursday, Iona announced that its co-founder and chief scientist, Dr Sean Baker is to move from being an executive to a non-executive board member. In addition, the firm said that Scott Devens is to replace William McMurry as vice president Worldwide Sales in January 2008. McMurray has elected to return home to Australia.

Iona, which was first established on the campus of Trinity College, Dublin in 1991, employs 347 people worldwide. Approximately 115 staff are employed at the firm's headquarters in Ireland.