Cognos Incorporated (Nasdaq: COGN; TSX: CSN – all figures in U.S. dollars), the world leader in business intelligence (BI) and performance management solutions, has announced financial results for its first quarter of fiscal year 2007, ended May 31, 2006.
Revenue for the first quarter was $217.0 million, compared with $200.1 million for the same period last fiscal year. License revenue was $73.7 million, compared with $71.1 million in the first quarter of last fiscal year.
Net income on a U.S. GAAP basis in the quarter was $14.5 million or $0.16 per diluted share, compared with $20.4 million or $0.22 per diluted share for the same period last fiscal year. Net income on a non-GAAP basis (excluding amortization of acquisition-related intangible assets and stock-based compensation expense) for the quarter was $19.8 million or $0.22 per diluted share, compared with $25.0 million or $0.27 per diluted share for the same period last fiscal year.
First quarter highlights include Cognos 8 license revenue of $43.5 million, 13 contracts greater than $1 million, compared to 6 for the same period last year, new Cognos Go! search service and strategic partnerships with enterprise search software leaders Autonomy, Fast, Google and IBM, and strong balance sheet performance – first quarter operating cash flow of $72.6 million.
“I am pleased with our first quarter results,” said Cognos president and chief executive officer Rob Ashe. “Cognos 8 delivered another strong quarter. It has now achieved more than $100 million in cumulative revenue in just over two quarters of general availability.”
“We are pleased to have the recent SEC staff review completed, eliminating the associated uncertainty for our customers and shareholders. I am confident in our business prospects and strategy moving forward,” he added.
The company’s outlook for the second quarter and full fiscal year 2007 assumes no significant changes in the economy, business intelligence and performance management market growth rate of approximately 7 per cent, a U.S. GAAP tax rate of 24% and a Canadian dollar of $0.88 U.S. and a Euro of $1.27 U.S. for the year. This outlook includes incremental costs associated with the company’s efforts to complete the SEC review of $0.02 in both the second quarter and full fiscal year.
The company is targeting revenue in the range of $220 million to $228 million for the second quarter of fiscal year 2007 ending August 31, 2006 and revenue in the range of $950 million to $970 million for the full fiscal year 2007 ending February 28, 2007.
“Business intelligence (BI) is critical to an organisation’s decision-making and Cognos solutions make sharing answers and insights across business effortless so stakeholders can make informed decisions, turn strategy into action, and optimise corporate performance,” said David Brierley, regional manager, Cognos Middle East and Africa.
First quarter non-GAAP results differ from results measured under U.S. GAAP as they exclude $1.1 million and $4.1 million of amortization of acquisition-related intangible assets and stock-based compensation expense, net of taxes, respectively.
About Cognos:
Cognos, the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.
Cognos brings together technology, analytical applications, best practices, and a broad network of partners to give customers a complete performance system. The Cognos performance system is an open and adaptive solution that leverages an organization’s ERP, packaged applications, and database investments. It gives customers the ability to answer the questions -- How are we doing? Why are we on or off track? What should we do about it? – and enables them to understand and monitor current performance while planning future business strategies.
Cognos serves more than 23,000 customers in more than 135 countries, and its top 100 enterprise customers consistently outperform market indexes. Cognos performance management solutions and services are also available from more than 3,000 worldwide partners and resellers. For more information, visit the Cognos Web site at http://www.cognos.com.
