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Cognos Incorporated, the world leader in business intelligence (BI) and Corporate Performance Management (CPM) solutions, announced RECORD results for its third quarter of fiscal year 2005, ended November 30, 2004. Revenue for the third quarter was $210.4 million, an increase of 22 percent compared to $172.2 million for the same period of last fiscal year. License revenue in the quarter was $91.6 million, an increase of 26 percent compared to $72.6 million in the third quarter of last fiscal year. Net income in the quarter was $34.5 million or $0.37 per diluted share, an increase of 42 percent from $24.2 million or $0.26 per diluted share for the same period of last fiscal year. Revenue for the first nine months of this fiscal year was $569.2 million, an increase of 18 percent compared with $481.0 million for the same period last fiscal year. Net income for the nine-month period was $82.3 million or $0.89 per diluted share, an increase of 50 percent from $54.8 million or $0.60 per diluted share for the same period of last fiscal year. "Cognos delivered another outstanding quarter," said Cognos President and Chief Executive Officer Rob Ashe. "The results were strong across the board and reflect solid execution by the Cognos team, excellent momentum with our market-leading products, and the strength of our competitive position." Highlights of the Quarter -- Continued strong momentum for Cognos ReportNet(TM), with year-to-date ReportNet license revenue of $99.1 million -- Major ReportNet customer wins in the third quarter included Barclays Bank, Cambridge University, Novartis, SNECMA Moteurs, U.S. Army and U.S. Strategic Command -- License revenue growth of 26 percent; 45 percent license revenue growth in the Americas -- 15 contracts greater than $1 million -- an all-time high for the Company -- across a broad spectrum of industry verticals, as represented by Boeing, DaimlerChrysler, Dominion Resources, ISKV, Staples, and Tyson Foods -- 127 contracts greater than $200,000, and 709 contracts greater than $50,000, increases of 34 percent and 24 percent, respectively, compared to the same period of last fiscal year -- Continued operating margin expansion to 19.9 percent, from 17.9 percent for the same period last fiscal year -- Completed the acquisition of Frango AB, strengthening Cognos' financial applications solutions and overall CPM position Cognos' balance sheet remains strong. Operating cash flow in the quarter was $38.3 million. The Company exited the third quarter with $439.4 million in cash, cash equivalents, and short-term investments. "Cognos ReportNet continues to excel, driving our success in competitive engagements, and securing its position as the industry's leading enterprise reporting solution," continued Mr. Ashe. "Enterprise Planning (EP) also delivered robust performance, contributing to EP's year-to-date license revenue growth of 40 percent. It forms a powerful combination with our Enterprise Business Intelligence Series as a winning CPM solution. "I remain very confident about our business. With the steady advancement of BI as a strategic asset and the growing momentum for CPM, and with product leadership in both these areas, we are well positioned for future growth." Business Outlook Management offers the following outlook for the fourth quarter of fiscal year 2005, ending February 28, 2005: -- Revenue is expected to be in the range of $235 million to $240 million; -- Diluted earnings per share are expected to be in the range of $0.44 to $0.47. Management offers the following outlook for the full fiscal year 2005: -- Revenue is expected to be in the range of $804 million to $809 million; -- Diluted earnings per share are expected to be in the range of $1.33 to $1.36.