Cognos Inc. continued to prove the strength of the business intelligence software space, with revenues and profits both turning in double digit growth rates in its fiscal first quarter, ended May 31.
The Ottawa, Ontario-based company reported revenues of $143.7 million, up from $111.6 million in the first quarter of the last fiscal year. Business intelligence license revenues led the surge, climbing to $56.7 million from $48 million last year.
Net income was up to $12.4 million from $9.9 million in last years first quarter.
It was Cognos first full quarter since absorbing business planning software developer Adaytum Inc., which was one of Cognos “key drivers” in the quarter, according to the companys chief financial officer, Tom Manley in an interview with eWEEK.
“We executed very well in what is still a tough economy and IT spending market,” said Manley, noting that Cognos closed nine deals worth more than $1 million in the quarter, a record.
Cognos has now been profitable for eight straight quarters since a restructuring in the first quarter of fiscal year 2002.
“We expect a consistent situation to what weve seen,” said Manley, about the companys outlook. “Business intelligence and Cognos specifically have been able to perform relatively well in a tough market.”
The companys earnings for the second quarter will likely be somewhat lower than Wall Street analysts projections, due in large part to the strength of the Canadian dollar.
“We had to wrestle with foreign exchange implications in this quarter,” said Manley, noting that the Canadian dollar rose 8 percent from the beginning of the quarter until the end. “A higher Canadian dollar increases our cost base,” he explained.