Iona Technologies (NASDAQ: IONA), a world leader in distributed service-oriented architecture (SOA) infrastructure solutions for performance-demanding IT environments, today announced results for the first quarter ended March 31, 2007.
Revenue for the first quarter 2007 was $15.6 million. Subsequent to the Company's release of preliminary results on April 5, 2007, and during customary review of the transactions for the quarter, the Company concluded that it should take the conservative approach of deferring the recognition of $1.6 million in revenue associated with an isolated and very complex transaction. The transaction was completed and the customer paid in full during the quarter.
On a U.S. generally accepted accounting principles (GAAP) basis, for the first quarter 2007 IONA reported a net loss of $2.8 million, or ($0.08) per share. Net income for the quarter includes SFAS 123R share-based compensation expense and amortization of purchased intangible assets of $1.4 million. Excluding $1.4 million of SFAS 123R share-based compensation expense and amortization of purchased intangible assets, net loss and earnings per share in the first quarter of 2007 was $1.4 million, or ($0.04) per share. A complete reconciliation between net loss and earnings per share on a GAAP basis and on a non-GAAP basis is provided in the financial tables at the end of this press release.
"Demand for our products is strong and continues to expand," said Peter Zotto, CEO, IONA. "IONA's customers, the large IT organizations typically found in global 2000 companies, are increasingly adopting SOA and we are well positioned to help them accomplish their goals. The consistent execution of our stated strategy continues to deliver real value to our customers and our shareholders."
Mr. Zotto continued, "Since the beginning of the year, we have made several strategic investments to extend the scope of our distributed approach to SOA infrastructure, and as such, the value of our products to our customers. These investments, including the recent acquisitions of C24 and LogicBlaze, and the successful launch of an active Registry/Repository product, bring our customers the advanced data services, SOA governance and open source capabilities required in performance-demanding SOA environments."
"While the deferred revenue affects our reported P&L, it does not impact our cash flow. We increased our cash balance to $56 million, even after concluding acquisition activity in the quarter, which demonstrates the underlying strength of our financial position," explained Bob McBride, CFO, IONA. "Our leverageable business model, combined with good cost control, will help to ensure that we have the financial resources to make the additional strategic investments required to continue to grow our business."
- Cash flow from operations of $8.7 million
- Launched Artix Registry/Repository, an active Registry/Repository product that offers global 2000 customers advanced SOA governance capabilities required for large-scale, distributed SOA deployments
- Acquired C24 to expand the data services capabilities of IONA Artix, the company's advanced SOA infrastructure suite
- Acquired LogicBlaze to accelerate the growth opportunities for IONA's open source business
- Announced that Aepona, the leading supplier of products and solutions for telecoms operators globally, selected Artix to provide crucial, standards-based SOA enablement capabilities for Aepona's Universal Service Platform
The company expects total revenue for Q2 2007 to be in the range of $20-$22 million. The company expects total expenses for the second quarter 2007, including cost of revenue, operating expenses, including those from recent acquisitions, and the cost of share-based compensation to be in the range of $21.2-$21.7 million. SFAS 123R share-based compensation expense and amortization of purchased intangible assets in the second quarter is expected to be approximately $1.7 million.
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