Irish software company Iona Technologies has announced an 18 per cent increase in third quarter revenues to $26.5 million (€28.6 million) but net income, excluding one-time charges, slipped to $2.4 million from $3.8 million a year ago.

The company incurred a onetime charge of $1.7 million in the third quarter for the write-off of assets related to the relocation of its US-based operations from Cambridge to Waltham, Massachusetts.

But if one-time charges are included, net income rose to $1 million, or 5 cents per share, from a net loss of $1.9 million, or a loss of 10 cents per share, in the third quarter of 1998.

The company's chairman and chief executive Dr Chris Horn, said Iona had increased product revenue and profitability and enhanced its enterprise sales capability, as it had set out to do.

"Our continued strong performance reinforces our on-going leadership in the middleware market," he said.

Iona, which has its headquarters in Dublin, makes middleware - programs that allow other software programs to work together. Last April, the company's share price tumbled from $30 to below $15 after the company warned that first-quarter profits would be lower than expected but sales and profits have begun to climb again in the last two quarters.

"In addition to solid sales execution, our performance was the result of the successful management of expenses and headcount," Iona's chief financial officer, Mr David James, said.

The shares, which are listed on the NASDAQ as well as the Irish Stock Exchange, were $2 higher at $17.125 by the close of business in Dublin yesterday.

The company said that as well as relocating its US operations, it had acquired Aurora Technologies, a US-based provider of middleware consulting services, in the third quarter.

Dr Horn said Iona will introduce significant new products in which it has been investing for several years at a users conference in Dublin on October 18th and 19th.