Iona Technologies will cut 60 jobs from its workforce of 800 in the next six weeks due to tough trading conditions, a spokesman said yesterday.

Most of the cuts will be in the US, but certain Irish workers at the software development firm will also lose their jobs.

The company employs 200 at its Dublin headquarters.

A spokesman said "less than 10" Irish staff would be affected.

The reductions follow results for the January-March period, which showed falling revenues, and an indication that conditions in the second quarter would be equally tough.

Though the results were in line with expectations - Iona had first quarter sales of $39.5 million (€44.46 million) down from $42.7 million a year earlier - the uncertainty meant guidance could be provided only for the second quarter and company said conditions were "extremely challenging".

The decision to cut staff indicates that a recovery is not projected. When asked whether a turnaround was expected, the spokesman said: "It's still a tough market out there and we're trying to get to the point where we can be profitable in the current conditions."

By the Dublin close, Iona's stock was trading 4.36 per cent stronger at $13.60 on the Nasdaq exchange. This is about half the level traded in early January.

In a note yesterday, ABN Amro said the share was likely to trade sideways due to an absence of newsflows.

Analyst Ms Jemma Houlihan said: "Full-year sales will be flat or marginally up on last year's $180 million while management is confident that it can sufficiently trim costs to ensure a profit for the full year."

The commentary followed a meeting on Thursday with Iona's chief financial officer, Mr Dan Demmer.

"The business environment remains tough and the company continues to keep a tight rein on costs."