Shares in Irish software company Iona Technologies fell yesterday, despite record second-quarter revenues and profits. Analysts said the shares took a hit due to a mixture of profit-taking and disappointing sales results outside the United States.

The company, whose products make different software programmes run together, said it had revenues (turnover) from April to June of $18.5 million (£13.2 million), an increase of 77 per cent over the same period in 1997. Net income (after-tax profit) increased by 57 per cent, Iona said, to $2.7 million from $1.7 million.

For the first six months of the year, income was $4.7 million on sales of $36.1 million, against $3.1 million in the year-ago period on revenues of $19.6 million, Iona said. "The second quarter featured several significant achievements for Iona," said the company's chairman and chief executive, Dr Chris Horn. "We improved profitability by substantially growing revenue and controlling expenses, while expanding our global customer base, deepening our industry alliances and introducing new products."

The company had continued to work closely with leading technology firms such as Microsoft and Hewlett-Packard, broadening and extending its business, Dr Horn continued.

"The second quarter reinforces our position as the world leader in making software work together," he said.

The company's chief financial officer, Mr David James, said he was pleased with Iona's revenue growth, significantly increased operating profits and net income.

Analysts said earnings had been in line with market predictions, but that Iona's share price fell due to a mixture of profit-taking and weaker than expected sales outside the US.