IONA Reports First Quarter 2008 Results

Share Name	Share Symbol	Market	Type
Iona Technologies Adr (MM)	NASDAQ:IONA	NASDAQ	Common Stock

Iona Technologies Adr (MM) (NASDAQ:IONA)
Historical Stock Chart

From Feb 2020 to Feb 2025

Click Here for more Iona Technologies Adr (MM) Charts.

IONA� Technologies (NASDAQ: IONA), a world leader in distributed service-oriented architecture (SOA) infrastructure solutions for performance-demanding IT environments, today announced first quarter 2008 revenue growth of six percent to $16.4 million, compared to the same period last year. On a U.S. generally accepted accounting principles (GAAP) basis, IONA reported a first quarter 2008 net loss of $5.1 million, or a loss of $0.14 per share. Net loss for the first quarter of 2008 includes SFAS 123R share-based compensation expense of $0.6 million, amortization of purchased intangible assets of $0.2 million and a restructuring charge of $1.5 million. Excluding SFAS 123R share-based compensation expense, amortization, and the restructuring charge, net loss and loss per share for the 2008 first quarter was $2.8 million and $0.08 per share. A complete reconciliation between net loss and loss per share on a GAAP basis and on a non-GAAP basis for the first quarter ended March 31, 2008 is provided in the financial tables at the end of this press release. �I am pleased with our first quarter performance,� said Peter Zotto, CEO, IONA Technologies. �Despite a difficult economic environment, Artix license growth of 31% was strong, indicating the growing strength of the Artix product line. CORBA revenue exceeded our expectations and the FUSE Open Source product line continues to add new customers to IONA�s expanding base. We are currently on track to meet our 2008 revenue plan.� �Our first quarter performance provides a solid foundation for growth in 2008,� said Christopher Mirabile, CFO, IONA Technologies. �The cost reduction plan was aggressively implemented and we are continuing our focus on tightly managing operational expenses. Our expense run-rate has now increased to include advisory fees associated with the Board�s evaluation of strategic alternatives for IONA. In addition, the current weakness of the US dollar is expected to have a continued negative impact on our operating profit.� Highlights Total revenue increased 6% year-over-year Artix license revenue increased 31% year-over-year CORBA revenue exceeded expectations with a 5% year-over-year decline Ending cash and current and non-current marketable securities balance of $55 million Passenger�, a technology leader in on-demand customer collaboration, selected IONA FUSE for enterprise deployment of Apache ActiveMQ Milestone Group selected IONA�s Artix Data Integration solution to extend the messaging and integration capabilities of their funds processing platform Artix Connect for Windows Communication Foundation (WCF) launched to positive market reviews, such as comments from competitive analysis firm Current Analysis A new SOA integration testing solution, the Interface Simulation and Testing Framework (ISTF) launched as part of IONA�s Artix advanced SOA infrastructure suite Extended leadership in Open Source with sponsorship of the Apache Software Foundation, supporting the efforts for increased adoption of Open Source SOA Elected to the OSGi Alliance board of directors, a worldwide consortium of technology innovators that promotes universal middleware interoperability. Marketable Securities As of March 31, 2008, the company held $18.0 million of student-loan-backed auction rate securities issued by state government agencies. Recent developments in the global credit and capital markets have made the market for these auction rate securities illiquid. As a result, based on a fair value analysis in accordance with U.S. GAAP, IONA classified these investments as non-current in its March 31, 2008 condensed consolidated balance sheet and recorded a temporary impairment of $0.8 million as an unrealized loss in the shareholders� equity section of its condensed consolidated balance sheet. For additional detail please refer to the company�s annual report on Form 10-K for the year ended December 31, 2007 and the company�s quarterly report on Form 10-Q for the quarter ended March 31, 2008 which will be filed no later than May 12, 2008. Looking Forward Revenue guidance for the year remains unchanged. The company expects total revenue for 2008 to be in the range of $80 - $85 million. The company expects total expenses for 2008, including cost of revenue, operating expenses, share-based compensation, amortization, restructuring incurred to date relating to the restructuring announced in January, and expenses incurred to date relating to the board�s evaluation of strategic alternatives (�evaluation process expenses�) to be in the range of $79 - $81 million. SFAS 123R share-based compensation expense in 2008 is expected to be approximately $3.2 million, amortization of purchased intangible assets in 2008 is expected to be approximately $0.8 million, 2008 restructuring expenses to date were $1.5 million and first quarter evaluation process expenses were $0.5 million. The company expects to incur additional restructuring expenses relating to the restructuring announced in January and additional evaluation process expenses in 2008 that we are unable to estimate at this time. Conference Call IONA will host a conference call today at 10:00 a.m. Eastern Time to discuss the company's first quarter 2008 results. Investors and other interested parties may dial into the call using the toll free number 888-790-1807 or +1-210-839-8792 internationally. This call is being Webcast by CCBN and can be accessed at www.iona.com/investors. The pass code is IONA. Following the conclusion of the call, a rebroadcast will be available at IONA's Web site (www.iona.com/investors) or by calling 800-879-7615 or +1-402-220-5340 internationally until May 30, 2008. About IONA For more than a decade, IONA� Technologies (NASDAQ: IONA) has been a world leader in delivering high-performance integration solutions for Global 2000 IT environments. IONA pioneered standards-based integration with its CORBA-based Orbix� products. IONA�s Artix�, an advanced SOA infrastructure suite enables customers to leverage service-oriented architecture to streamline and modernize IT environments. The FUSE� family of open source distributed SOA infrastructure technology allows customers to take advantage of the innovation and cost-effectiveness of open source software with complete enterprise support and technical services. IONA is headquartered in Dublin, Ireland, with U.S. headquarters in Waltham, Massachusetts and offices worldwide. For additional information about IONA, visit our Web site at http://www.iona.com. Safe Harbor This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning expectations regarding, future operating performance, and economic and market conditions. The forward-looking statements made are neither promises nor guarantees and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated or indicated, including risks and uncertainties relating to growth in market demand for service oriented architectures and enterprise service bus software; volume, timing and seasonal patterns of product sales; impact of competitive products and pricing; delays or issues with the development, launch and market acceptance of new and improved products; undetected errors in software; the integration of any future acquisitions; anticipated tax rates; expenses and uncertainties relating to IONA's previously announced process to explore strategic alternatives; additional expenses relating to restructuring, market conditions affecting possible strategic alternatives for IONA, , its beliefs regarding the liquidity and quality of its investments in auction rate securities and tax and regulatory matters relating thereto; and general economic conditions, including their effect on the acquisition of new accounts and the time required to close sales transactions. For a more detailed discussion of the risks and uncertainties, please refer to our most recent annual report on Form 10-K and other periodic reports and registration statements filed with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements in this press release, which are current only as of the date when made. You should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise, and IONA disavows and disclaims any obligation to do so. Trademarks IONA, IONA Technologies, the IONA logo, Orbix, High Performance Integration, Artix, FUSE and Making Software Work Together are trademarks or registered trademarks of IONA Technologies PLC and/or its subsidiaries. CORBA is a trademark or registered trademark of the Object Management Group, Inc. in the United States and other countries. All other trademarks that may appear herein are the property of their respective owners. IONA Technologies PLC Condensed Consolidated Statements of Operations (U.S. dollars in thousands, except per share data) � � � � � Three Months Ended (Unaudited) March 31, 2008 � March 31, 2007 Revenue: Product revenue $ 6,596 $ 6,268 Service revenue � 9,845 � � 9,314 � Total revenue 16,441 15,582 � Cost of revenue: Cost of product revenue 187 230 Cost of service revenue � 3,835 � � 3,453 � Total cost of revenue 4,022 3,683 � � Gross profit 12,419 11,899 � Operating expenses: Research and development 4,921 4,427 Sales and marketing 7,209 7,851 General and administrative 4,009 3,126 Amortization of purchased intangible assets 52 8 Restructuring � 1,529 � � - � Total operating expenses 17,720 15,412 � Loss from operations (5,301 ) (3,513 ) � Interest income and other, net 499 575 Net exchange gain � 69 � � 13 � � Loss before provision for (benefit of) income taxes (4,733 ) (2,925 ) Provision for (benefit of) income taxes � 391 � � (77 ) � Net loss � ($5,124 ) � ($2,848 ) � Net loss per ordinary share and per ADS Basic ($0.14 ) ($0.08 ) Diluted ($0.14 ) ($0.08 ) � Shares used in computing net loss per ordinary share and per ADS (in thousands) Basic 36,643 36,074 Diluted 36,643 36,074 � Certain amounts from prior year periods have been reclassified to conform to the current period presentation. IONA Technologies PLC Condensed Consolidated Balance Sheets (U.S. dollars in thousands) � � � March 31, December 31, 2008 2007 (1) (Unaudited) � ASSETS Current assets: Cash and cash equivalents $ 29,554 $ 21,967 Marketable securities 8,514 34,514 Accounts receivable, net of allowance for doubtful accounts of $402 at March 31, 2008 and $583 at December 31, 2007 (2) 13,029 12,378 Prepaid expenses 2,735 2,138 Deferred tax asset - current 888 888 Other assets � 169 � � 190 � Total current assets 54,889 72,075 � Property and equipment, net 2,618 2,644 Goodwill and intangible assets, net 9,949 10,149 Marketable securities, non-current 17,197 - Deferred tax asset - long term 1,040 1,040 Other non-current assets, net � 422 � � 388 � Total assets $ 86,115 � � 86,296 � � LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 786 $ 1,470 Accrued payroll and related expenses 4,436 4,946 Deferred revenue (2) 20,469 15,931 Other accrued liabilities � 12,480 � � 10,498 � Total current liabilities 38,171 32,845 � Long-term deferred revenue 1,268 1,317 Other non-current liabilities 1,731 2,583 � Shareholders' equity: � Ordinary shares 101 101 Additional paid-in capital 509,796 508,474 Accumulated deficit (464,156 ) (459,032 ) Accumulated other comprehensive loss � (796 ) � 8 � Total shareholders' equity 44,945 49,551 � � Total liabilities and shareholders' equity $ 86,115 � $ 86,296 � (1) The December balance sheet information has been derived from the December 31, 2007 audited consolidated financial statements. (2) March 31, 2008 and December 31, 2007 accounts receivable and deferred revenue balances are shown net of advanced billings of $1.5 million and $5.6 million, respectively IONA Technologies PLC Unaudited Reconciliation of Non-GAAP Measures to Comparable GAAP Measures (U.S. dollars in thousands, except per share data) � � � � � We utilize certain non-GAAP financial measures to evaluate our performance and for internal planning and forecasting purposes. We consider these measures important indicators of our success. � We believe the use of non-GAAP measures in addition to GAAP measures is an additional useful method of evaluating our results of operations. These measures should not be considered an alternative to measurements required by United States generally accepted accounting principles ("GAAP") such as net loss and net loss per share and should not be considered measures of our liquidity. In addition, our non-GAAP financial measures may not be comparable to similar measures reported by other companies. � The following tables reconcile non-GAAP financial measures used in this release to the most comparable GAAP measure for the respective periods. � Three Months Ended (Unaudited) March 31, 2008 � March 31, 2007 � Net loss � GAAP net loss ($5,124) ($2,848) Plus: Share-based compensation 609 1,353 Amortization of purchased intangible assets 199 56 Restructuring 1,529 - Non-GAAP net loss ($2,787) ($1,439) � Net loss per ordinary share and ADS, diluted � GAAP net loss per ($0.14) ($0.08) ordinary share and per ADS, diluted Plus: Share-based compensation 0.02 0.04 Amortization of purchased intangible assets 0.00 0.00 Restructuring 0.04 0.00 Non -GAAP net loss per � � ordinary share and per ADS, diluted ($0.08) ($0.04) � Shares used in computing diluted Non-GAAP net loss per ordinary share and per ADS (in thousands) 36,643 36,074 � Loss from operations � GAAP loss from operations ($5,301) ($3,513) Plus: Share-based compensation 609 1,353 Amortization of purchased intangible assets 199 56 Restructuring 1,529 - Non-GAAP loss from operations ($2,964) ($2,104) � Operating margin � GAAP operating margin (32%) (23%) Plus: Share-based compensation 4% 9% Amortization of purchased intangible assets 1% 0% Restructuring 9% 0% Non-GAAP operating margin (18%) (14%) � Total Expenses � Total Non-GAAP expenses $19,405 $17,686 Plus: Share-based compensation: Cost of service revenue 98 143 Research and development 185 290 Sales and marketing 176 454 General and administrative 150 466 Total share-based compensation 609 1,353 Amortization of intangible assets: Cost of product revenue 147 48 Amortization of purchased intangible assets 52 8 Total amortization of intangible assets 199 56 Restructuring 1,529 - Total GAAP expenses $21,742 19,095

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

IONA Iona Technologies Adr (MM)