INDUSTRY

Cognos Incorporated announced financial results for its fourth quarter and full fiscal year 2006, ended February 28, 2006. Revenue for the fourth quarter was $253.1 million, compared with $256.3 million for the same period of last fiscal year. License revenue was $117.9 million, compared with $129.9 million in the fourth quarter of last fiscal year. Net income in the quarter was $44.0 million or $0.48 per diluted share, compared with $54.3 million or $0.58 per diluted share for the same period last fiscal year. Revenue for the full fiscal year 2006 was $877.5 million, compared with $825.5 million for the previous fiscal year. Net income for fiscal year 2006 was $124.8 million, or $1.35 per diluted share, compared with the prior year's net income of $136.6 million, or $1.47 per diluted share. "These results represent solid performance," said Rob Ashe, Cognos president and chief executive officer. "Overall license revenue of $117.9 million, inclusive of Cognos 8 license revenue of $55.5 million, 18 seven- figure contracts, and several major competitive wins all underscore the strength of our performance this quarter. Cognos 8 is setting the agenda for the BI market and establishing itself as the platform of choice for BI standardization." "The Cognos team executed well this quarter," Mr. Ashe continued. "Our market leading solutions for BI and Performance Management position us strongly in this dynamic market. The recent release of Cognos 8 MR1, the launch of our ground-breaking Search solution -- Cognos Go!, and our new Strategic Global Alliance with IBM set Cognos on course to take full advantage of the tremendous market opportunity in front of us." Highlights: * Fourth quarter license revenue of $117.9 million, up 56 percent from the third quarter * Cognos 8 license revenue of $55.5 million in the fourth quarter * 18 contracts greater than $1 million, compared to 18 for the same period last year * 242 contracts greater than $200,000, up 16 percent over the fourth quarter last year * Cognos announces Global Strategic Alliance with IBM * Major Cognos 8 wins at Allianz Life Insurance Company of North America, BC Hydro, BUPA, Georgia Department of Education, Nestle Suisse S.A., Public Works and Government Services Canada, San Diego City Schools, and State of Ohio Department of Administrative Services Cognos' balance sheet remains strong. Operating cash flow was $92.7 million. As a result, the company exited the quarter with $551.0 million in cash, cash equivalents, and short-term investments. Business Outlook Management offers the following outlook for the first quarter of fiscal year 2007, ending May 31, 2006, inclusive of an after-tax share based compensation expense of $0.05: * Revenue is expected to be in the range of $210 million to $218 million; * Diluted earnings per share are expected to be in the range of $0.15 to $0.19. Management offers the following outlook for the full fiscal year 2007, ending February 28, 2007, inclusive of an after-tax share based compensation expense of $0.23: * Revenue is expected to be in the range of $940 million to $960 million; * Diluted earnings per share are expected to be in the range of $1.20 to $1.27.