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In its preliminary results for the second quarter to the end of 30 June 2002, Iona said that it expects to report revenue in the range of USD26 million to USD26.5 million. Furthermore, the company anticipates a pro forma net loss per share of between USD0.47 and USD0.49. What's more, these numbers are significantly higher than the USD0.08 per share loss the software company reported in the first three months of 2002.
Iona had previously anticipated a loss of between USD0.02 and USD0.06 per share in April and it attributed the increased losses per share to the reluctance of potential customers to close deals. "I am disappointed with our results this quarter, but I am taking appropriate actions to navigate Iona successfully through these challenging times," said Barry Morris, Iona's chief executive officer.
Dan Demmer, Iona's chief financial officer said the company typically closes between five and eight large deals valued at more than USD1 million each quarter. Although the company has been pursuing a number of large deals throughout the quarter, the firm now believes that these deals will now be pushed into later quarters, he announced during a teleconference.
Iona also expects to take a one-time restructuring charge of between USD7.5 million and USD8 million to pay for the cost of redundancies and office consolidation. Iona announced 70 redundancies worldwide at the end of May, 10 of which took place in Dublin. This charge brings the net loss per share to between USD0.86 and USD0.88.
"We are aligning our resources with a very challenging economic environment," Demmer. "We will continue to demonstrate the fiscal and operational discipline required to successfully execute on our strategy in these difficult times."
Iona is a middleware and Web services software developer based in Dublin, with US headquarters in Waltham, Massachusetts. It had revenues of USD181 million in 2001 and employs 859 people worldwide, 200 of whom are based in Ireland.
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