Irish software firm Iona Technologies expects to report first-quarter revenues of $17 million (€12.6 million), considerably less than the $18.5-19.5 million it had guided at its annual results.

Iona said the main reason behind the shortfall was the failure to sign two contracts in the quarter. One contract in Asia is expected to be signed in the current quarter while the other, a US-based contract, is expected to be signed later in the year.

"Our results for the first quarter highlight the continuing challenge of fitting our business neatly into three-month periods. Certain transactions did not close as expected in the first quarter," said Peter Zotto, chief executive.

"We expect to close these transactions in the coming quarters." He said its Artix business is performing well and licence revenue grew by more than 90 per cent.