Iona Technologies has posted revenues of $19.1 million (€15.6 million) for the final quarter of 2005, slightly ahead of market expectations.

The result left full-year 2005 sales at $66.8 million, down from $68 million in the previous year.

Iona generated earnings per share of three US cents in the final quarter but registered a loss per share of two cents for the year.

Peter Zotto, Iona's chief executive, was upbeat on the overall performance, pointing to progress in all parts of the business.

He was particularly happy with Artix, the firm's newest software product.

Artix was introduced at the end of 2003 and is seen as the biggest potential growth engine for Iona, which had traditionally relied on its Corba product.

Iona's product revenues, which comprise about half of the total, grew by 9 per cent over the year, while sales of Artix rose by 120 per cent.

In the fourth quarter, sales of Artix increased by 98 per cent to $3.8 million. Analysts had expected Artix revenues of about $10 million for the year, with actual full-year revenues coming in at $9.5 million.

Mr Zotto said that while Iona recognises the "challenges" associated with Artix's market, the firm remains "confident" in its strategy.

Iona ended the year with $52 million in cash and marketable securities and had deferred revenues of $23 million.

The fourth-quarter results included a $1.1 million non-recurring expense for "accrued vacation" reflecting the way Iona accounted for holiday time built up by its employees.

Iona said its sales for the first quarter of 2006 would be $15-$16 million, with expenses of $17.7-$18.2 million.

Shares in Iona improved yesterday, gaining 3.26 per cent to trade at $3.48 on the Nasdaq by early afternoon.