Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cognos Inc. - COGN -- Ignore unavailable to you. Want to Upgrade?

To: Sultan who wrote (844)	6/23/1999 6:45:00 AM
From: Glenn McDougall	Respond to of 1109

Cattle call at Cognos Hi-tech firm seeks more hired hands By KEVIN BELL, Business Editor, Ottawa Sun COGNOS Inc. has gone on a massive hiring binge to position itself for rapid growth and a higher stock price in the future, chief executive Ron Zambonini said yesterday. The company has hired 200 people in the last three months, including 70 in sales in marketing, bringing its worldwide workforce to 1,900. "We've never done that before," Zambonini told shareholders at the company's annual general meeting. "I don't have to tell you that adding people in this industry takes a huge effort to find them, attract them, to get them started and trained." Zambonini said he expects Cognos will add another 200 people to bring its workforce to 2,100 by the end of the year. Cognos will also pursue larger sales of its business intelligence software to bigger firms in a bid to push the growth of the products' sales from 33% to 40%. Zambonini said he expects to achieve 40% growth annual in the products' sales over the next few quarters. "We really want to grow the company aggressively this year and next," he said. The company reported yesterday that it made $10.9 million US, or 25cents a share, on revenue of $81.6 million in its first quarter. That's down slightly from $11.3 million, or 25cents a share, from the same quarter last year. "These results represent another solid financial start to the new year," Zambonini said. The slight dip in net profits is due to higher taxes and a 24% increase in costs, including the costs of bringing so many new people on board, he said. The company is also investing heavily in research and development and focusing its products for the Internet. About 60% of the firm's staff now work on Web-based applications. The firm's R&D budget is also triple that of France-based Business Objects SA, the competitor "that keeps me up at night," he said. But Zambonini said he is still frustrated that the company's share price is not reflecting the firm's potential. Yesterday, it closed at $35 on the Toronto exchange, up $1.35. That may change, he told reporters. "I don't think our company has been doing enough in communicating our story to people on Wall Street," he said. "The key thing we have to do is keep growing and keep making money and I'm sure our stock price will eventually reflect it."