Cognos Reports Stronger Sales, Slimmer Profits

Cognos Inc., a vendor of business intelligence software, yesterday reported higher second-quarter sales but a slimmer profit compared with last year.

Revenue for the quarter was $88.1 million for the quarter ended August 31, up from $70.6 million in the same period last year. Net income for the quarter was $12.8 million, or 30 cents per share, compared with $14.1 million, or 32 cents per share for the year-ago quarter.

Joe Farley, a vice president at Donaldson, Lufkin & Jenrette, said the company's strong quarterly growth in sales is a result of Cognos dropping its conservative spending practices and focusing on revenue. "Cognos made the decision to stop holding back on expenditures," he said. "They're spending money to generate more revenue."

For the six-month period ended Aug. 31, Cognos posted revenue of $169.8 million, compared with $137.9 million in the first six months of the last fiscal year. Net income dropped to $23.7 million and 54 cents per share, when measured against last year's net income of $25.4 million and 57 cents per share.