Shares in Iona technologies have slumped after the company downgraded its full year expectations followings its second quarter results.
In a conference call to analysts Iona cut revenue growth forecasts for the year to 25-30% from 45-50%.
Iona shares were down 7.50 euro at 25 euro by the close of business on the ISEQ, having risen in early trade after the results were released.
Gemma Houlihan, analyst at ABN Amro, said the shares rose initially when the results were released, but in the conference call two hours later it became clear the company's outlook for the year was less promising.
'There was a false confidence from the market initially, but once the we heard about the poor future outlook a lot of people started to sell the shares,' she said.
Iona shares were down $5.09 at $20.70 at 5.05pm Irish time, having risen in early trade on the Nasdaq after the results were released.
Iona Technologies announced second quarter revenues of $51.5 million today, a 49% increase on the same period last year.
Speaking to OnBusiness Iona chief executive Barry Morris said that poor visibility going forward meant the company had decided to downgrade its guidance to analysts. He said the company wished to maintain its conservative policy in relation to its expectations.
He emphasised that the second quarter results were strong, and to maintain profitability following the acquisition of loss-making Netfish was a good achievement.
He said Iona had successfully integrated all its recent acquisitions, and the company recorded a pre-tax gross profit of $41 million.
In May the company cut 175 jobs, and said these were rationalisations from the integration of new businesses.
'We increased revenues whilst carefully controlling expenses, allowing us to exceed our profit target for the quarter,' Morris said.
