Cognos has announced record results for its third quarter of fiscal year 2003, ended 30 November 2002. Revenue for the quarter was $138.1 million, an increase of 11% compared with revenue of $124.2 million for the same period last year; and net income $19.9 million or $0.22 a share, up 50% compared with $13.3 million or $0.15 a share in the third quarter of the previous year.
Revenue for the nine-month period ended 30 November was $387.3 million, compared with $348.5 million for the same period in 2002. Net income for the first nine months of the year was $43.6 million or $0.48 a share, compared with $9.3 million or $0.10 a share, including restructuring charges of $12.8 million, for the corresponding period a year earlier.
Total business intelligence (BI) revenue achieved strong growth in the quarter, continuing its momentum. BI revenue reached $130.3 million, an increase of 14% from the third quarter of last year. BI licence revenue increased 7% to $60.3 million, compared with $56.5 million for the same period last year.
BI support revenue increased 26% to reach $47.1 million, compared with $37.5 million last year.
Highlights of the quarter
Double-digit percentage growth for BI revenue in all three major geographies: US, Europe and Asia/Pacific.
Analytic applications revenue growth of 68% year over year to $10.4 million.
Contracts greater than $200 000 increased 17% year over year to 74, including four worth more than $1 million; contracts greater than $50 000 increased 14% to 458.
Continued operating margin expansion to 20.3%.
Outstanding customer response to Cognos Series 7 and Corporate Performance Management: 10 000 customers attended Cognos Enterprise 2002 User Days in 29 cities, including Johannesburg.
The company had $338.1 million in cash, cash equivalents, and short-term investments at the end of the third quarter.
"The third quarter was rock-solid for Cognos," says Cognos South Africa MD David McWilliam. "Cognos has delivered excellent results across the board in a tough market. As a company, Cognos is performing worldwide and customers have responded to its value proposition.
"Our new product pipeline is driving a clear competitive advantage. Cognos Series 7 and analytic applications are building momentum. Series 7 is spurring success in new accounts, and the strong uptake among existing customers has yielded many up-sell and cross-sell opportunities."
Revenue for the fourth quarter is expected to be in the range of $155 million to $157 million. Diluted earnings per share are expected to be in the range of $0.28 to $0.29. Revenue for full fiscal year 2003 is expected to be in the range of $542 million to $544 million, and diluted earnings per share in the range of $0.76 to $0.77.
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