Until now Cognos appeared to be successfully muddling through the economic downturn. Sales for the quarter ended Feb. 28 increased 22% from a year earlier. At that time, Cognos execs said that while some customers were deferring major purchases, demand for the company's business-intelligence software remained strong.
Sales for the first quarter will fall in the range of $106 million to $110 million, compared with sales of $108.7 million for the same period last year, according to Cognos. Net income is expected to fall between breakeven and a net loss of $4 million (4 cents per share) for the quarter, a sharp contrast to the $12 million (13 cents per share) profit the vendor earned one year earlier. The estimates don't include a one-time $13 million charge the company will take against earnings to cover the restructuring expenses. Cognos will release the quarter's final results and guidance about its second quarter on June 21.