Shares in the Dublin-based software firm Iona Technologies surged 25 per cent yesterday after it reported better than expected results and predicted revenue growth in the fourth quarter.
The firm, which has undergone a major restructuring over the past three years following three profit warnings, reported revenues worth $17.4 million (€14.95 million) and a net loss of just under $2 million.
This compares to revenues of $26.5 million and a loss of $26.3 million reported in the same quarter in the previous year.
Iona reported a third quarter net loss per share of five cents, some six cents per share better than anticipated by analysts. The firm also guided that fourth quarter revenues would increase by between 5-15 per cent, signalling that the worst may be over for the Republic's best known indigenous software firm.
Mr Gerry Hennigan, technology analyst with Goodbody Stockbrokers, said the results showed that Iona had stabilised somewhat and management was more confident about the future.
He predicted the software company could get close to making a profit in the fourth quarter but more likely this milestone would be reached early next year.
Mr Chris Horn, Iona's founder and chief executive, said he was reasonably happy with the firm's progress during the quarter and since he took charge in May.
Iona signed 16 deals worth between $250,000 and $1 million during the third quarter and a single $1 million plus deal during the third quarter, he added.
Mr Horn said the firm was determined to return to profit and would adjust the cost base as required to reach this goal. But he said there were no imminent plans to take any further action.
Iona cut operating expenses to just $16.3 million, down from $46 million in the same period last year. It has reduced its workforce to about 400 staff, down from an all-time high of more than 1,200.
Iona announced the appointment of a new chief operating officer, Mr Peter Zotto, following the departure of Mr Steve Fisch earlier this year. Mr Zotto was most recently chief executive of Proteus Industries, a privately held company. He also worked with Digital Equipment Corporation in the past.
Shares in Iona reacted positively to the result's announcement yesterday closing up 57 cents at $3.62 on the Nasdaq. At one stage yesterday the stock hit a 52-week high of $3.80 before slipping back to lower levels.
