Iona Technologies lost $25.4 million (€22.6 million) in the second quarter of 2003, but said yesterday it was focusing on getting back to profit and not pursuing a quick sale.

The Dublin-based software firm, which has struggled in the past year to meet its earnings targets, generated revenues of $16.4 million, down from $26.3 million in the second quarter 2002.

Iona posted a net loss of $25.4 million for the second quarter, slightly below a loss of $28.5 million, which it posted in the same period of 2002. This amounts to a 77 cent net loss per share, compared to the 88 cent per share loss in the second quarter 2002.

Iona's losses were slightly better than analysts' expectations due to cost cuts during the quarter as the firm reduced its workforce. This contributed to a $14.8 million once-off restructuring charge in the quarter.

But second-quarter revenues were slightly below analysts' estimates, prompting concern about Iona's ability to generate cash.

Mr Gerry Hennigan, analyst with Goodbody Stockbrokers, said generating revenues would be a difficult task given all the lost ground during the past year.

"The firm has to show sequential revenue growth. . . My view is that Chris has not come back on the board to sell the firm in the short term," he added.

Dr Chris Horn, who took over from Mr Barry Morris as Iona's chief executive six weeks ago, said he was fully committed to bringing the firm back into profit by the end of the year.

He also rejected the analysis of an NCB brokers report published yesterday, which urged Iona management to seek a quick sale of the firm in light of its inability to build revenues in its market.

Dr Horn said the firm had already signed a $1 million deal with a telecoms firm this quarter.

Shares in Iona closed down 0.81 per cent at $2.45 on the Nasdaq yesterday following the announcement. Iona employs 120 people in Dublin, and a total of about 400 staff worldwide.