Sales at Iona Technologies have jumped 19 per cent in the third quarter to $24.2 million (€16.93 million), significantly ahead of market projections.

Net profit for the three months to the end of September was $3.1 million compared to $497,000 in the same period last year.

Iona also announced that its co-founder and chief scientist Seán Baker is to step down from his executive role to become a non-executive director.

Software sales were particularly strong with licence revenues increasing at 25 per cent ahead of the overall growth rate.

Revenue from its newer Artix line of products was up 82 per cent. Customers of the product now include blue-chip organisations such as Citigroup, DZ Bank, Poste Italiane and Nokia, according to chief executive Peter Zotto.

Mr Zotto said that revenues from its older Corba product line declined at a better than expected 8 per cent and it "continues to be a significant contributor to our cash and profits".

The results were much needed good news for the Nasdaq-quoted software company which has reported net losses and slipped contracts in recent quarters.

"We achieved strong operating margins, cash flow, and revenue growth in the quarter," said Bob McBride, Iona's chief financial officer.

"Year to date our cash flow from operations has grown our cash and cash equivalents by $4.8 million to $58.8 million, even after funding two acquisitions earlier this year."

Iona said it expected fourth- quarter revenues to be in the range of $20-$22 million and expenses to be in the range of $21.0-$21.5 million.

The company's shares closed at €2.90 in Dublin last night, up 10 cent.