Shares in Iona Technologies surged on the Nasdaq after the software company announced a worldwide partnership with Compaq Computers that will help Iona's products to reach new markets while cutting the cost for Compaq's customers of moving to e-business. Under the terms of the agreement, Iona and Compaq will jointly develop, market and sell versions of Iona's iPortal suite and other Iona products supporting all Compaq platforms.
"Compaq went through a rigorous process for 15 months and looked at every company in the field. Ours is the product of choice for Compaq at the present time," a company spokesman said.
He added that the agreement, which involves a significant financial investment by both companies, was "a super endorsement for our new strategy".
Iona, which has its headquarters in Dublin, makes middleware - programs that allow other software programs to work together. The portal suite product is designed to address problems in developing, deploying and managing a specific class of e-business applications known as enterprise portals.
"Iona is thrilled to begin this significant, strategic partnership with Compaq," Iona chairman and chief executive Dr Chris Horn said. "With its offerings in the area of Internet infrastructure and its ability to drive industry-standard solutions to broad markets, Compaq is uniquely qualified to meet enterprise e-business needs."
The software group also reported a 32 per cent increase in fourth quarter revenues to a record $33.2 million (€32.9 million), up from $25.2 million a year earlier. Net income, at $3.8 million or 17 US cents per share, was down from $4.8 million in the same quarter last year but up on the $2.4 million posted in the third quarter.
Product revenues performed particularly well for the group, rising by 35 per cent.
"In the fourth quarter, we achieved the goals we set for ourselves. We increased both revenue and profitability from the prior quarter and we had solid sales execution," said chief financial officer Mr David James.
Iona's shares rose following the announcement of the Compaq deal, which one analyst said was "very significant from Iona's perspective". The results were also ahead of market expectations.
In Dublin, the shares were unchanged but on the Nasdaq, where they mainly trade, they closed up 10.8 per cent at $53.87 1/2, having briefly topped $57.
Iona also announced the appointment of Mr Edward J. Gaudet as vice-president of world wide marketing.
