IONA Announces Preliminary Third Quarter Results

IONA, the leading e-Business Platform provider for Total Business Integration today announced preliminary results for its third quarter ended September 30, 2001.

IONA expects to report revenues of approximately $4m, compared to $39.9m for the same period last year. Based on these revenues, IONA expects to report a pro forma net loss for the third quarter of approximately $2.2m, or $0.08 per share, excluding previously announced amortization of goodwill and purchased intangible assets, restructuring charges, in-process research and development, stock compensation and the associated tax effects.

"The business interruption and difficult economic climate caused by the events of September 11 affected our business at the end of the third quarter," said Barry Morris, IONA's CEO.

"Despite these events, our customers are returning back to business, and I remain confident in our prospects. Companies have an increasing need to drive efficiencies through strategic investments in business integration and are looking for proven solutions that are open, standards-based, technologically advanced and comprehensive.

"This market opportunity is enormous, and with our large customer base, uniquely modern and comprehensive product set, and aggressive go-to-market strategy, IONA is particularly well positioned to succeed."

"It is no surprise that the recent events impacted our ability to close business at the end of the quarter, particularly with financial services customers," added Dan Demmer, IONA's Chief Financial Officer.

"However, our strong financial position and proven track record of operational discipline are of paramount importance in this unusual environment. At the end of September, we further reduced our expense base; I currently expect sequential revenue growth and a return to pro forma profitability in the December quarter."