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

To: Sultan who wrote (812)	4/8/1999 7:47:00 AM
From: Glenn McDougall	Respond to of 1109

Cognos sees no drop in sales from Y2K Beats expectations Jill Vardy Financial Post OTTAWA - There's no evidence Cognos Inc. will suffer the same millennium bug drop in sales that other software companies have reported, Alan Rottenberg, its senior vice-president, said yesterday. Cognos reported earnings in its fourth quarter were better than analysts expected, and, so far at least, its sales have not been hurt by the preoccupation of its customers with fixing their computer systems before the turn of the century. After the market closed, Cognos reported net income of $20.5-million (47¢ a share) on revenue of $86.9-million in its fourth quarter ended Feb. 28, up from $17-million (38¢) on $70.7-million in fourth-quarter 1998. The most recent earnings exclude $3.3-million in writedowns from previous acquisitions. Analysts had expected Cognos to report earnings per share of about 44¢. And some were worried that the company, which makes software that helps companies manage databases and other information, would forecast a drop in sales as the turn of the century approaches. That's what's happened to JetForm Corp., another Ottawa software company that sells exclusively to businesses and government departments. And late on Tuesday Cognos competitor Hyperion Solutions Corp. (HYSL/NASDAQ) warned its third-quarter revenue was lower than expected because of, among other things, "a general industry slowdown in licence sales experienced by other enterprise software companies." That's not happening to Cognos, said Mr. Rottenberg, the company's senior vice-president of business intelligence tools. "We have not seen any Y2K slowdown. That may have to do with the nature of the target buyer and the nature of the software," he said. "Going forward, our feeling is that Y2K should be relatively neutral." Cognos shares (CSN/TSE) dropped $2.35 to $34 in Toronto yesterday on fears the company would warn about an anticipated slowdown. Analysts predicted before a conference call with the company last night that if Cognos can allay fears of a Y2K slowdown, the company's shares should rise to close to $40 today. Cognos makes business intelligence software, which businesses use to manage their data on centralized servers or through the Internet. Mr. Rottenberg predicted that this year, 50% of Cognos's revenue will come from its Internet-based software, as companies use the Web to allow more employees access to analytical data. That more widespread use of business intelligence software across companies has also meant larger sales for Cognos. The company had more than 100 orders with values in excess of $100,000 during its fourth quarter, including sales to such companies as General Electric, Marriott, and United Airlines. He said the company's focus this year will be on making it easy for companies to deploy business intelligence software and administer it on larger scales. The aim, Mr. Rottenberg said, is to get companies using the software to give all employees access to key information, not just the employees in specific departments. "Our big focus is on servicing large corporations with large numbers of users," he said.

To: Sultan who wrote (812)	4/8/1999 7:55:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 1109

Profits soar at Cognos Firm out-gains expectations By SUSAN TAYLOR, Ottawa Sun COGNOS Inc. beat analysts' estimates for its fourth quarter, but the software company plans on aggressive expansion to maintain its market lead. The Ottawa firm recorded a profit of $20.5 million US, 47cents a share, on sales of $86.9 million. The consensus estimate from five brokers polled by First Call Corp. was 43cents US for the quarter. The results exclude onetime charges related to the acquisition of Relational Matters and LEX2000 Inc. Including those, there was a profit of $17.2 million, 39cents a share. In the same period last year, Cognos recorded a profit of $17 million, 38cents a share, on sales of $70.7 million. For the fiscal year, the company recorded a profit of $61.8 million, $1.39 a share, on sales of $301.1 million, excluding onetime charges. In the previous year, Cognos saw a profit of $50.6 million, $1.11 a share, on sales of $244.8 million. Those results position the company as the leader in the business intelligence market. To hold that lead with increasing and "ferocious" competition, officials say Cognos will invest in staff and product development in the year ahead. "Competition is increasing, which is actually good," said Alan Rottenberg, senior vice-president of marketing and business strategy. More players means customers become better educated and make purchase decisions more quickly, he added. Cognos will expand its sales force and software developers to ensure it's present "whenever there is a sales opportunity related to business intelligence," Rottenberg said. The company will also add staff and services partners to help customers better use its business intelligence tools: PowerPlay, Impromptu and DataMerchant. Those BI products made up $70.6 million of Cognos revenue in the fourth quarter, up 33% from the same period last year. For 1999, BI sales hit $231 million, up 31% from the previous year. Product plans are aimed at modifying some tools and adding common features, such as easier security, across product lines. That's meant to lower the cost of ownership, ease administration and make the software easier to deploy. "A lot of investment will be made," said Rottenberg. Cognos shares fell $2.35 to close at $34 on the TSE yesterday before the results were released. That's well below the value chief executive Ron Zambonini has said he expected. "Management essentially focuses on delivering the results quarter after quarter," said Rottenberg. "It feels that over time, our share value will recognize these efforts."