Software group Iona Technologies returned to profitability last year, posting a net income of $2.5 million (€1.9 million).

The company reported a net loss of $843,000 in 2005.

Revenue for 2006 was up 17 per cent to $77.8 million, on the back of a strong performance from its leading Artix software product.

Fourth-quarter revenue was also up 19 per cent at $22.8 million. Net profit for the quarter was $2.9 million.

The fourth quarter caps Iona's most profitable year since 2000, according to the company, which launched new versions of Artix and introduced a new software product, Celtix.

"For six straight quarters we have generated year-over-year product revenue growth and, excluding stock-based compensation expense, a positive operating margin," said Iona chief financial officer Bob McBride.

At year-end, the company said it had $54 million in cash and marketable securities and deferred revenue of $21.3 million.

"I am pleased with our accomplishments in the quarter and throughout 2006, and with the progress we are making," said Iona chief executive Peter Zotto.

"Our continued operational execution resulted in full-year revenue growth of 17 per cent, led by a 113 per cent growth in Artix, reinforcing Artix as a market leader. We exited 2006 with significant momentum, positioning us for continued profitable growth in 2007."

Iona said it expected total revenue for the first quarter of 2007 to be in the range of $18.5 million to $19.5 million. It also expected total expenses for the first quarter, including the cost of revenue, operating expenses and the cost of stock-based compensation, to be in the range of $19.5 million to $20 million.

Iona also announced that John Conroy had retired from its board of directors. Following his retirement, Jim Maikranz was appointed to the audit committee and Bruce Ryan was appointed to the nominating and corporate governance committee.