Iona Technologies, the Dublin-based software group, has surprised the market with better than expected fourth-quarter figures. Shares in the group - which had taken a battering in recent weeks after a string of bad news from competitors - were up more than 8 per cent at $64 (€69) by midday in New York.
Revenue in the three months to the end of December was $47.9 million, an increase of 44 per cent on the same quarter last year. Profit in the period was up 84 per cent to $8.4 million. Analysts' attention focused yesterday on the group's predictions for sales in the coming year in the context of the slowdown of the US economy, where Iona derives 70 per cent of its sales. The shares rose after the company left its forecast of 30 per cent sales growth in 2001 unchanged.
"Our concern had been the 2001 sales figure," said Mr Barry Dixon of Davy Stockbrokers. Iona's two main competitors, Neon and BEA Systems, have both issued profit and revenue warnings in recent weeks.
Sales of Iona's software - called the iPortal Suite - are less likely to suffer in a downturn than other Internet-based products, according to analysts. The iPortal suite allows large organisations to integrate their existing back office systems via the Internet and technology.
New sales accounted for $33 million of the $47.9 million third-quarter revenues, with service contracts accounting for the remainder. Revenue for the full year was $105 million, compared to $71 million in 1999.
Earnings per share of 35 US cents exceeded even the most optimistic forecast of 34 cents made by Davy Stockbrokers.
Iona said yesterday it had settled a legal action over breach of patent taken against it by RSA Securities and the Massachusetts Institute of Technology. The terms of the settlement were confidential but the company recorded an exceptional cost of $1.3 million in relation to the action.
