Technology firm Iona has reported record second-quarter revenues, but is reducing its expectations for the year as a whole due to the current global economic environment.
Revenues were up 49 per cent in the second quarter, at $51.5 million (#58.9 million) compared to the same period in 2000, a rise of 21 per cent over the first quarter.
Pro forma earnings for the Irish-based e-platform provider were $0.3 million, or $0.01 per share for the second quarter. The company's share price fell 22 per cent to $20.10 on the Nasdaq and dropped #7.50 to #25.00 on the Irish stock market following the results.
Chief executive officer Mr Barry Morris said while the company performed well in a challenging economic environment, thanks to increased revenues and controlled expenses, it would revise expectations downwards for the full year.
Third-quarter earnings per share are expected to be flat and earnings per share for the year will be in the region of $0.20 to $0.25.
"We are reducing our expectations of revenue and earnings growth because of the economic environment, not so much reducing demand as the pipeline is very strong, but that it has put more risk into our visibility of forthcoming financial performance," Mr Morris said.
Iona bought Californian software company Netfish Technologies for $270 million in May, and Mr Morris said this was now integrated into the group.
To absorb Netfish, a substantial lossmaker, he said Iona had to put the company on a cost track which would bring it back to a profitable business model.
In May the company, employing more than 1,200 people following the Netfish acquisition, said it was cutting 175 jobs worldwide, including 30 in Dublin. Mr Morris would not be drawn on whether more were likely. "I am not going to say that there won't or will be further jobs cuts. Certainly we feel very comfortable where we are and we will continue to manage the company profitably within the environment we are in."
Iona had a total operating expense of $71.8 million for the second quarter of 2001 compared to $26.9 million for the corresponding period in 2000.
Its total operating expense for the first six months of 2001 came to $105.76 million, versus $50 million for the first half of 2000. The company reported a net income loss of $29.1 million for the first half of this year, down from a net income gain of $4.6 million in the first half of 2000.
The company, which has made a string of acquisitions including Sagavista and Object Oriented Concepts in late 2000, said it remained cautiously acquisitive.
"I would describe our acquisitions policy as carefully aggressive," Mr Morris said. "Acquisitions are part of my strategy going forward but we will not jump at these things."
