Sales, Earnings Both Rise For Cognos In Q1 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Information Management
News
6/24/2005
06:04 PM
50%
50%

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll