INDUSTRY
Cognos 8 BI delivers $43.5 million in license revenue
Cognos Incorporated, the world leader in business intelligence (BI) and performance management solutions, today 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 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. A reconciliation of U.S. GAAP to non-GAAP results is included at the end of this press release. First Quarter Highlights: * Cognos 8 license revenue of $43.5 million in the first quarter * 13 contracts greater than $1 million, compared to 6 for the same period last year * Enterprise software veteran Les Rechan appointed COO * Announces new Cognos Go! search service and strategic partnerships with enterprise search software leaders Autonomy, Fast, Google and IBM * Strong balance sheet performance - First quarter operating cash flow of $72.6 million; Days sales outstanding (DSOs) for accounts receivable were 58 days; $610.2 million in cash, cash equivalents, and short-term investments as of the end of the quarter "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," continued Mr. Ashe. "I am confident in our business prospects and strategy moving forward." Business Outlook The company's outlook for the second quarter and full fiscal year 2007 assumes no significant changes in the economy, a business intelligence and performance management market growth rate of approximately 7 percent, 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. Management offers the following outlook for the second quarter of fiscal year 2007 ending August 31, 2006: * Revenue is expected to be in the range of $220 million to $228 million * U.S. GAAP diluted earnings per share are expected to be in the range of $0.16 to $0.20 * Non-GAAP diluted earnings per share are expected to be in the range of $0.22 to $0.26 Expected non-GAAP diluted earnings per share for the quarter ending August 31, 2006 exclude approximately $1.1 million of amortization of acquisition-related intangible assets and approximately $4.9 million of stock-based compensation expense, which is an increase of approximately $0.06 per share, after the effect of taxes. Management offers the following outlook for the full fiscal year 2007 ending February 28, 2007: * Revenue is expected to be in the range of $950 million to $970 million * U.S. GAAP diluted earnings per share are expected to be in the range of $1.15 to $1.22 * Non-GAAP diluted earnings per share are expected to be in the range of $1.43 to $1.50 Expected non-GAAP diluted earnings per share for fiscal year 2007 ending February 28, 2007, exclude approximately $4.5 million of amortization of acquisition-related intangible assets and approximately $21.0 million of stock-based compensation expense, which is an increase of approximately $0.28 per share, after the effect of taxes.
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 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. A reconciliation of U.S. GAAP to non-GAAP results is included at the end of this press release. First Quarter Highlights: * Cognos 8 license revenue of $43.5 million in the first quarter * 13 contracts greater than $1 million, compared to 6 for the same period last year * Enterprise software veteran Les Rechan appointed COO * Announces new Cognos Go! search service and strategic partnerships with enterprise search software leaders Autonomy, Fast, Google and IBM * Strong balance sheet performance - First quarter operating cash flow of $72.6 million; Days sales outstanding (DSOs) for accounts receivable were 58 days; $610.2 million in cash, cash equivalents, and short-term investments as of the end of the quarter "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," continued Mr. Ashe. "I am confident in our business prospects and strategy moving forward." Business Outlook The company's outlook for the second quarter and full fiscal year 2007 assumes no significant changes in the economy, a business intelligence and performance management market growth rate of approximately 7 percent, 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. Management offers the following outlook for the second quarter of fiscal year 2007 ending August 31, 2006: * Revenue is expected to be in the range of $220 million to $228 million * U.S. GAAP diluted earnings per share are expected to be in the range of $0.16 to $0.20 * Non-GAAP diluted earnings per share are expected to be in the range of $0.22 to $0.26 Expected non-GAAP diluted earnings per share for the quarter ending August 31, 2006 exclude approximately $1.1 million of amortization of acquisition-related intangible assets and approximately $4.9 million of stock-based compensation expense, which is an increase of approximately $0.06 per share, after the effect of taxes. Management offers the following outlook for the full fiscal year 2007 ending February 28, 2007: * Revenue is expected to be in the range of $950 million to $970 million * U.S. GAAP diluted earnings per share are expected to be in the range of $1.15 to $1.22 * Non-GAAP diluted earnings per share are expected to be in the range of $1.43 to $1.50 Expected non-GAAP diluted earnings per share for fiscal year 2007 ending February 28, 2007, exclude approximately $4.5 million of amortization of acquisition-related intangible assets and approximately $21.0 million of stock-based compensation expense, which is an increase of approximately $0.28 per share, after the effect of taxes.