Dr Chris Horn, co-founder of Iona Technologies, stepped down as chief executive of the Irish software company yesterday two years after returning to steer it through a crisis.
Dr Horn was replaced by Iona's chief operating officer, Peter Zotto, who told The Irish Times that he would focus on executing the firm's current strategy for the year ahead.
The management reshuffle was announced by Iona at the publication of its 2005 first-quarter results, which show that the company generated net income of $107,000, (€83,550) down on the $190,000 it reported in the period a year ago.
It also reported revenue of $16.3 million in the quarter, down from $16.9 million a year earlier.
In a statement, Iona said it was currently a "challenging environment" in the software industry and it was happy to meet its earnings guidance for the quarter.
Dr Horn, who owns 7 per cent of Iona shares, will assume a non-executive role as vice-chairman of the firm's board.
"I do not see this as stepping aside, rather I see this as stepping up to the position of vice-chairman of the board," said Dr Horn, who added that he would devote more time to his chairmanship of the Irish Management Institute and Unicef.
Dr Horn said Iona was continuing to move in the right direction following its strategic redirection in 2004. He said that the firm had added eight customers in the quarter for its new software product, Artix. The firm now has about 40 customers using Artix, which generates about 10 per cent of the firm's total revenues, he added.
Iona said it was on course to increase the value of its Artix software to account for 20 per cent of the firm's total revenue by the end of 2005.
Artix software enables companies to integrate different types of legacy systems together in a cost-efficient manner. Its adoption by customers is considered crucial to Iona's future success.
Like much of the technology industry, Iona suffered a massive slump in sales in 2001-2002 following the bursting of the dotcom bubble. Since late 2003, it has changed its strategy to focus on the Artix product and forming partnerships with a network of system integrators that can help it to sell its software.
Iona shares closed down 30 cents at €2.79 on the Dublin market last night.
