Iona cuts loss to $2m and eyes return to profit

IONA Technologies has significantly reduced its third quarter loss to $2 million, leaving the software company poised to return to profits by the end of this year.

Revenues for the three months to the end of September were $17.4m, Iona said yesterday, with the net loss at six cents per share compared to an 80c loss in the same quarter last year.

“I am pleased with our execution in Q3,” said Chris Horn, Iona’s chief executive, who has led a cost-cutting drive since returning to the post this year.

The restructuring, which cost nearly $15m in the second quarter, saw a number of jobs losses at its Dublin office.

Brokers said yesterday that revenues were down by nearly a third on last year’s figure, but ahead of expectations. The loss per share was in line with forecasts, but left the company well positioned to be earnings positive next year.

Dr Horn said that the company is seeing a growing interest in the market for its integration solutions and he expects revenues for the fourth quarter of 2003 to increase by between five and 15% on that achieved in the third quarter.

Iona Technologies also said yesterday that Peter Zotto has been appointed as the company's chief operating officer.

Mr Zotto is a technology industry veteran and is the founder of Claright, a consulting firm specialising in providing marketing expertise to small to mid-sized companies.

Separately yesterday, US firm Celestica announced a $250m bid for manufacturing company MSL, which was formed by Irishman Kevin Melia. MSL makes IT hardware for companies like Dell and IBM and employs 250 people in Ireland.

Mr Melia stood aside from an executive position a couple of years ago, but still remains a large shareholder.