The $1.9m ( 1.6m) pre-tax profit the company delivered in 2005 was greeted as a "significant milestone in the history of the group" by chief executive Cormac Whelan last week. The small profit is the first posted by Datalex since its dual listing on the American Nasdaq and the Irish Stock Exchange in October 2000.

In December 2004, Whelan became the company's third chief executive in three years.

He is now in the happy position of having good news for long-suffering shareholders.

"It's nice to get back to some level of profitability, " he admitted last week.

Datalex broke into profit despite a 7% decline in sales to $28.4m ( 23.4m) - largely by slashing costs by more than a quarter to $8.8m ( 7.3m). Whelan said the belttightening days are now over.

"From a cost perspective we're back down to basics I don't see us making huge cost reductions from here on in."

Back when it floated in 2000 at a valuation of over 120m, the Dublin-based company which supplies software to airlines and travel agents to run telephone and online booking services had grander milestones in mind.

But it was to turn out to be the last company to float in Dublin before the crash, and set for a very rocky ride.

On the scene since 1985, Datalex had established a profitable business before it floated. And its Scottish founder, Neil Wilson, convinced an array of heavy-hitters of the company's promise. ICC Venture Capital was an early backer, leading a 5m funding round in 1998 and bumping up its stake after the flotation.

Dermot Desmond's investment vehicle IIU was a preflotation believer, and still owns just over 13%. Millionaire accountant Paschal Taggart was both a director and a shareholder.Nor were the management team slouches.

Alongside Wilson at the time of the flotation was chief financial officer Liam Booth, now head of NCB Corporate Finance.

The party wouldn't last.

Datalex got on to the market by the skin of its teeth, just as the Nasdaq was in freefall following its March 2000 peak.

Then it raised $56m to fund acquisitions. Although a buying spree contributed to a revenue spurt from $13m to $33m during Datalex's first year as a PLC, the growth came at a cost. With the airline and travel industries in crisis mode in September 2001, the company's target market shrank overnight and the company began to look bloated.

Wilson began cutting back, unravelling the expensive expansion. He predicted Datalex would return to profitability in 2002. It didn't.

Datalex lost $19m over the course of the year. Neil Beck, appointed to succeed Wilson as chief executive when the losses continued, said 2003 would be the comeback year.

It wasn't.

In 2003, the company lost a further $8m. Between 2002 and 2004, operating costs were halved. That year Wilson, who had moved into the chairman's role on Beck's appointment, took the helm of the company's sales force.

He was replaced as chairman by former ICC Venture Capital boss Michael Quinn.

In October 2004, Quinn assumed the role of executive chairman when Beck resigned for "personal reasons" just before the company announced a - much improved - annual loss of $1.5m. Within two months Whelan, then chief financial officer of the company, was in the top job.

So far, so survivalist. But the question is where next.

Last year's decline in turnover was a consequence of Whelan's decision to move from a licencing model to a transaction-based model.

Datalex previously charged customers licence fees to use its software. Last year, it moved to charging new customers a small fee for each transaction processed using its booking systems.

Goodbody analyst Gerry Hennigan reckons that the move makes sense in that it will make the company's earnings easier to predict.

"Visibility in the long term income stream will improve, " Hennigan said. "Fundamentally, what management are trying to do is the right approach, and people recognise that."

Most of Datalex's turnover in 2005 was still attributable to licence fees and service income. Hennigan cautions that Datalex will have to be careful not to erode its shortterm revenue base from licence fees as it moves to its new business model.

On the promising side last year, there were some nice contract wins. The company signed deals with Virgin Atlantic and Scandinavian airline SAS.

In an indicator of success in widening its net beyond its traditional airline base, it also signed up travel agent STA and resort operator Vail Resorts. Whelan said he is encouraged by the trend towards online booking in a cost-conscious aviation industry.

Something is pleasing investors. Datalex shares have almost doubled in value to 83 cent over the past year.

Though at a market capitalisation of 55m, it's still a long way from the glory days.