Irish software company Iona Technologies has confirmed that it will be seeking to cut staff numbers as part of a cost-cutting programme.
This came after a trading update in which Iona said it expected revenues of about $18m for the fourth quarter of 2007, well below what analysts had expected.
The news knocked almost 25% of the value of Iona shares, which fell 51 cent to end at €1.65 in Dublin.
The company said that weakness its its financial services market was the major contributor to a delay in closing deals at the end of the year.
'To achieve our target margin model and return to our goal of solid profitability in 2008, we are taking meaningful cost reduction actions,' commented Peter Zotto, Iona's CEO. Iona later said it was not in a position to comment on the details, and would elaborate when it announced results on January 24.
'We anticipate a small headcount reduction in several locations,' it said. The company employs 365 worldwide, with 115 staff based in Dublin.
Iona also forecast total costs for Q4 of about $20.5m, which includes $2.1m of stock-based compensation expenses and a once-off facilities charge.
