Iona Technologies has posted second-quarter revenues of $19.8 million (€14.3 million), up 12 per cent year on year, but the software company still posted a net loss of $1.2 million. Revenues were slightly below analysts' expectations.

The company said it expects third-quarter revenues to be in the range of $20-$22 million with expenses, including stock option costs of $21.6-$22.1 million.

Chief executive Peter Zotto said revenues from Iona's newer Artix line grew by 53 per cent, while its Corba software declined 4 per cent, less than expected.

Through the introduction of new products and two acquisitions made earlier this year, C24 and LogicBlaze, Mr Zotto said Iona "had access to customers and prospects that were not possible six months ago".

Iona's first-quarter results in April were overshadowed by two large contracts failing to close. Mr Zotto said an Artix deal with a new European financial services customer was delayed during the second quarter.

"I have to ensure I don't leave large amounts of money on the table by giving discounts simply to close a deal during a given quarter," said Mr Zotto.

Bob McBride, chief financial officer, said Iona had generated more than $11 million in the first half of the year which had "more than funded our acquisitions".

The acquisition of C24 in March formed the basis for the new Artix product, which has been sold to five customers, three of which are new to Iona.

Mr McBride said the company signed two deals during the quarter which were worth more than $1 million, with the average contract being $64,000.