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Cognos sees leap in profits

The manufacturer of software that makes data useful is reporting a 28 percent rise in profits for its second quarter over with the like period last year.

Getting data into your computer systems is easy. Doing something useful with it once it is there is another story altogether.

So its no wonder that Cognos, a manufacturer of software that makes data useful, is reporting a 28 percent leap in profits for its second quarter ended August 31, over the like period last year.

With $14.1 million in net income, compared with profits of $11 million posted for the like period a year ago, the Ottawa, Canada-based firm's shareholders will see a return of 32 cents per share on their investment, vs. 24 cents per share for last year's second quarter.

Revenues for the period were $70.6 million, a 22 percent hike from last year's second-quarter earnings of $58 million. For the first half of the year, Cognos made $137.9 million, 23 percent more than last year's $112.1 million posted for the same period.

Software licensing revenue accounted for $51.8 million of Cognos's income, 26 percent more than last year's like quarter. Among the firms buying the company's products during the period were Eastman Chemical, Qualcomm, Credit Suisse First Boston, Raytheon, Kohler, United Airlines, and Deutsche Bank.

"We closed 175 large orders--those in excess of $50,000--compared to 109 in the second quarter of last year," said Ron Zambonini, president and CEO of Cognos. "In addition, we recruited over 150 new resellers of these products in the quarter. Third parties accounted for 32 percent of license sales in the quarter."

The company's Web-based products for querying and data analysis across the Internet brought in $8 million in revenue during the period. Application development tools brought in $18.7 million.