7/18/2002 - IONA®, the leading e-Business Platform provider for Web Services Integration (NASDAQ: IONA), today announced financial results for its second quarter ended June 30, 2002. IONA announced revenues of $26.3 million and a pro forma net loss of $15.5 million or ($0.48) net loss per share.
Pro forma results exclude amortization of purchased intangible assets, restructuring and other one-time charges, stock compensation and the associated tax effect. On a U.S. GAAP basis, after taking into account the foregoing items, IONA reported a net loss per share of ($0.87) for the second quarter of 2002. Details regarding IONA's reported results are in the financial tables at the end of this release.
"I am disappointed with our Q2 results, but I am taking actions to return IONA to profitable growth," said Barry Morris, IONA's Chief Executive Officer. "IONA has enviable strengths in its world-class employees, its customer base of more than 4,500 organizations and its cash balance of approximately $100 million. I remain very confident in our prospects."
As previously announced on July 8th, IONA instituted a cost-reduction program in the second quarter that included consolidation of excess facilities, reduction of workforce, and other cost reduction activities. The company made significant progress in the second quarter resulting in a one-time restructuring charge of $7.9 million in the second quarter ended June 30, 2002. In addition, IONA recorded a non-recurring, non-cash charge of $1.6 million for the retirement of certain fixed assets.
"IONA has the resources and discipline required to execute on our strategy in this challenging environment," said Dan Demmer, IONA's Chief Financial Officer. "We are implementing our plan to get IONA to a cash-flow positive position as quickly as possible, while maintaining our long-term growth potential."
Looking forward, the company expects a continued challenging economic environment. The company therefore expects revenue for the third quarter of 2002 to be in the range of $25 - $28 million and a pro forma net loss per share to be in the range of ($0.32) - ($0.38). As a result of its ongoing cost reduction efforts, the company expects to incur a restructuring charge of $8.0 - $9.0 million in the third quarter of 2002. On a U.S. GAAP basis, the company expects a net loss per share to be in the range of ($0.67) to ($0.75).
IONA will host a conference call to discuss the company's second quarter results on Wednesday, July 17, 2002 at 10:00 a.m. Eastern Daylight Time. Investors and other interested parties may dial into the call using the toll free number (888) 423-3271 in the United States or (612) 332-0107 outside the United States. The conference call will also be available via webcast on the Investor Relations section of IONA's website at www.iona.com. Following the conclusion of the call, a replay will be available until midnight on July 24, 2002 by calling (800) 475-6701 in the United States or (320) 365-3844 outside of the United States, using confirmation code 644155 or via the website at www.iona.com
IONA is the leading e-Business Platform provider for Web Services Integration with more than 4,500 customers worldwide. IONA Orbix E2A™, which consists of the award-winning Orbix E2A Web Services Integration Platform and Orbix E2A Application Server Platform, enables the flow of information across disparate systems and the liberation of application assets for new business opportunities.
Founded in 1991, IONA® (NASDAQ: IONA) is headquartered in Dublin, Ireland, with U.S. headquarters in Waltham, Massachusetts. The company had revenues of $181 million in 2001 and employs more than 800 people in more than 30 offices worldwide. For additional information about IONA, visit our Web site at http://www.iona.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning plans and objectives of management, expectations regarding future financial performance, profitability, 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 the Company's cost-reduction efforts; the integration of recent and future acquisitions; the launch of IONA's End 2 Anywhere strategy for Web Services Integration; growth in market demand for Web services and integration; IONA's enterprise sales model and its current market; volume, timing and seasonal patterns of product sales; impact of competitive products and pricing; development and market acceptance of new and improved products; undetected errors in software; 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 20-F 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.
IONA, IONA Technologies, the IONA logo, Orbix, E2A, End 2 Anywhere, End To Anywhere, Orbix E2A, IONA E2A, IONA e-Business Platform, iPortal Application Server, SureTrack, IONA XMLBus, Adaptive Runtime Technology, Orbacus, Orbix/E, IONA University and Total Business Integration are trademarks or registered trademarks of IONA Technologies PLC and/or its subsidiaries. Java and J2EE are trademarks or registered trademarks of Sun Microsystems, Inc in the United States and other countries. CORBA is a trademark or registered trademark of the Object Management Group, Inc in the U.S. and other countries. All other trademarks that may appear herein are the property of their respective owners.
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