CURRENT ACCOUNT: It's difficult to overstate the damage that the pulling of Spectel's flotation this week has done - not just to the company but also for the image of the Irish high-tech sector.

And questions will be undoubtedly asked at the decision to go ahead with the IPO two weeks ago when even then - before the carnage in the sector in the past while - the market for technology new issues was iffy.

Software company Spectel actually generated a profit of €5 million last year.

If companies like it cannot get a public offering off the ground at a decent price, then what hope is there for other Irish software companies which have still to report profits.

If the IPO market for software companies remains on the floor, then these companies will be dependent on venture capital and private equity companies for their funding.

And these funders will probably become increasingly choosy about where they put their money. Analysts had welcomed the Spectel flotation a few weeks ago as it seemed to indicate that companies are now focusing on profits before they float.

Now, with the technology sector once again in the doldrums, even profitability seems to be of little interest to investors.