Software // Information Management
News
6/24/2005
06:04 PM
Connect Directly
RSS
E-Mail
50%
50%
Repost This

Sales, Earnings Both Rise For Cognos In Q1

Earnings came in at $23.8 million, 18 percent higher than the $20.1 million Cognos netted in the first quarter of fiscal 2004.

Business intelligence software maker Cognos beat Wall Street's expectations and turned in bright news on both the sales and earnings sides in its 2006 first fiscal quarter.

Revenue surged 15 percent to $200.1 million, compared with sales of $173.6 million in the same period last year. License revenue rose 8 percent to $71.1 million in the quarter. Earnings came in at $23.8 million, 18 percent higher than the $20.1 million Cognos netted in the first quarter of fiscal 2004.

The earnings equate to 25 cents on a per-share basis, surpassing financial analysts' consensus estimate of 22 cents per share. Cognos' first fiscal quarter for 2006 ended on May 31.

The BI vendor and corporate performance management software maker attributed a large part of its growth to its flagship ReportNet tool, with license revenue jumping 25 percent for the product. The company's planning software saw a 24 percent increase in licensing dollars.

Cognos garnered 668 contracts of greater value than $50,000 in the quarter, and 104 deals worth more than $200,000. Both were substantial increases, percentage-wise, over the same period last year. The Australian Department of Defense, DaimlerChrysler Services, Travelocity and the Arkansas Department of Education were among the company's wins in the quarter.

"The fundamentals of the business are strong," Cognos president and CEO Rob Ashe said in a prepared statement. "While revenue was below our expectation in the quarter, our performance in the key strategic areas of Cognos ReportNet and Enterprise Planning was solid, our sales pipeline is healthy, and our product offering is the strongest in the industry."

Unfavorable currency exchange rates and a failure to close certain large transactions diluted sales, Cognos said. The firm forecasts second-quarter sales of between $207 million to $215 million, roughly at or slightly below Street expectations of $213 million.

Comment  | 
Print  | 
More Insights
The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Elite 100 - 2014
Our InformationWeek Elite 100 issue -- our 26th ranking of technology innovators -- shines a spotlight on businesses that are succeeding because of their digital strategies. We take a close at look at the top five companies in this year's ranking and the eight winners of our Business Innovation awards, and offer 20 great ideas that you can use in your company. We also provide a ranked list of our Elite 100 innovators.
Video
Slideshows
Twitter Feed
Audio Interviews
Archived Audio Interviews
GE is a leader in combining connected devices and advanced analytics in pursuit of practical goals like less downtime, lower operating costs, and higher throughput. At GIO Power & Water, CIO Jim Fowler is part of the team exploring how to apply these techniques to some of the world's essential infrastructure, from power plants to water treatment systems. Join us, and bring your questions, as we talk about what's ahead.