Iona Posts Loss As Revenue Plummets

Hit by a steep drop in demand for its Web services and integration software products, Iona Technologies PLC reported a loss of $28.5 million, or 87 cents per share, for its second quarter ended June 30. Total revenue plunged nearly 50% to $26.3 million from $51.5 million in the same period last year.

The results were in line with warnings Iona, in Dublin, Ireland, issued on July 8. The company, with U.S. headquarters in Waltham, Mass., is cutting its workforce and consolidating offices to reduce its losses and improve its cash flow. The results include a one-time $7.9 million restructuring charge and a $1.6 million noncash charge for the retirement of certain fixed assets. The company has a cash balance of approximately $100 million.

Product revenue for the quarter was $13.4 million, down 62% from one year earlier. With the difficult business environment, Iona expects revenue in the current quarter to be $25 million to $28 million, with a loss of 67 cents to 75 cents per share.