Cognos® Announces Results for First Quarter Fiscal Year 2002
OTTAWA, June 21, 2001 — Cognos Incorporated (Nasdaq: COGN; TSE: CSN), today announced results for the Company`s first quarter of fiscal year 2002, which ended on May 31, 2001. Revenue for the quarter was $108.0 million, compared with revenue of $108.7 million for the same period last year.
Net loss for the first quarter of fiscal 2002, excluding restructuring charges, was $2.1 million or $0.02 per share. This compares with net income of $12.0 million, or $0.13 per share for the first quarter of the prior fiscal year. Including restructuring charges of $12.8 million (pre tax), net loss was $11.1 million or $0.13 per share.
All figures are stated in U.S. dollars and in accordance with U.S. GAAP.
"Final results for the quarter were consistent with the revised expectations we announced on May 30, 2001," said Ron Zambonini, Cognos President and CEO. "As I stated at that time, our first quarter results were clearly affected by unfavorable economic conditions, particularly in the United States, our largest single market."
Business intelligence (BI) revenue accounted for over 90 percent of total revenue in the quarter. First-quarter BI revenue was $98.7 million, compared with $95.3 million in the first quarter of last fiscal year. BI license revenue was $41.4 million for the quarter, versus $52.3 million for the same period last year.
"We felt the effect of the economic slowdown across all deal sizes this quarter, in contrast to the fourth quarter, when the effect was limited to large deals," continued Mr. Zambonini. "The strength of our support and services revenue again this quarter is indicative of the continued strong acceptance of the value proposition of our total enterprise offering within the user community.
"On May 30 we also announced measures to reduce expenses in order to align our cost structure to the current economic environment. The measures included a workforce reduction of approximately 300 people, or about 10 percent of the Company`s global staff. These actions are intended to return the Company to profitability in the second quarter of this fiscal year.
"The workforce reduction was completed the day we announced it. It is not expected to significantly affect any strategic programs. Specifically, product plans remain on track for the major release of our fully integrated BI platform, EP Series 7, later this fiscal year, as well as for our analytic applications portfolio, including release 5.1 of Cognos Finance, which is on schedule to ship in July.
"We remain confident that the core value proposition of our enterprise software solution, the long-term market prospects for business intelligence software, and the Company`s competitive position are all solid," concluded Mr. Zambonini. "We are determined to emerge from the current economic environment a much stronger company."
Cognos will hold a Webcast and conference call to present results for its first quarter of fiscal year 2002 at 5:15 p.m. Eastern Time, today, June 21, 2001. The Webcast may be accessed at
http://www.cognos.com/company/investor/events/earnings_fy02q1.html.
The conference call may be accessed at 416-640-1907.
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
This press release contains forward-looking statements relating to, among other things: the Company`s expectations concerning future revenues and earnings; the effect of reduced expenses on results; the effect of the workforce reduction on strategic programs; the effect of the current economic environment on the Company`s business and technology strategies; the Company`s ability to deliver business intelligence solutions that respond to changing market requirements; the future prospects of the Company`s current and future products, and the Company`s ability to compete in an intensely competitive marketplace.
These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause future results to differ materially from those in the forward-looking statements. Factors that may cause such differences include, but are not limited to: the impact of global economic conditions on the Company`s business and the Company`s ability to implement timely and appropriate remedial measures; the Company`s ability to select and implement appropriate business models and strategies; the Company`s ability to maintain revenue growth or to anticipate a decline in revenue from any of its products or services; fluctuations in its quarterly and annual operating results based on historical patterns, which may cause its stock price to fluctuate or decline; rapid technological change and new product introductions and enhancements in the business intelligence software market; the Company`s reliance on partners and other third party distribution channels to market and distribute its products; unauthorized use of the Company`s intellectual property; claims by third parties that the Company`s software infringes their intellectual property; the Company`s ability to compete in an intensely competitive marketplace; the risks inherent in international operations, such as currency exchange rate fluctuations; the Company`s ability to identify, hire, train, motivate and retain highly qualified management and other key personnel; the Company`s ability to identify, pursue and complete acquisitions which could divert management attention and financial resources and not produce desired business results; as well as the risk factors discussed in the Company`s most recent Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statement to reflect any change in the Company`s expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
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