Late last week, IONA reported its fiscal Q3 results. Revenue rose 19% to $24.2 million and license revenue was up 24.7% to $14.6 million. In fact, getting a boost from biggie customers like Citigroup
To rev up growth, IONA is pushing hard on alliances. The company is now a gold certified partner with Microsoft
Another big issue is that IONA gets about 25% of its revenue from the financial sector. On the conference call, management talked about "subprime" issues with some of its customers, saying there could be a slowdown. Keep in mind that IONA's Q4 guidance for revenue is a soft $20 million to $22 million.
All in all, IONA has done a fairly good job in terms of cash flows, revenue growth, and product innovation. But as a small business, the company may be more susceptible to volatility in different sectors, such as financial services. In other words, the lackluster stock performance could continue for the rest of the year.
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