Iona Technologies moved back into the black for its second fiscal quarter, citing its focus on enterprise sales and tightly managed expenses as the key to success.
The object request broker (Orb) vendor tumbled into the red last quarter, reporting net losses of $400,000 or $0.02 per share. The First Call analysts consensus had originally expected it to show profits of $0.18 per share. Sales, however, rose 20 per cent to $21.2 million.
Chris Horn, Iona's chairman and chief executive, at the time, blamed executional issues for the shortfall as the firm moved its sales and marketing model to focus on high level corporate executives rather than IT managers.
This quarter, however, the firm saw sales increase to $24.6 million from $18.5 million, while net profits fell to $1.2 million or $0.06 per share compared with $2.7 million or $0.13 per share in the year ago period.
This still exceeded the First Call analysts' consensus estimate of $0.01 per share, however, and Iona's shares rose $1.125 to close at $17.875 on the news.
David James, Iona's chief financial officer, said: "In quarter two, our focus on building our capabilities as a strategic enterprise vendor, while tightly managing expenses, has yielded profitable growth."
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