Cognos beats 3Q earnings estimates, disappoints on sales

Cognos (Nasdaq: COGN) topped analyst estimates in the third quarter.

After market close Thursday, the vendor of data analysis and reporting software reported fiscal third quarter net income of $17 million, or 18 cents per share, excluding special charges. First Call's survey of 14 analysts predicted a profit of 16 cents per share for the quarter ended Nov. 30.

Shares of Cognos traded at 26.5625 in afterhours activity on the Island electronic communications network, immediately following the release of quarterly results. Cognos fell 1.6875 to 27.0625 in Thursday's regular trading ahead of the report.

Including goodwill writedowns and charges to write off purchased in-process R&D, Cognos earned $13.6 million, or 15 cents per share.

Third quarter revenue increased 28 percent year-over-year to $97.8 million. Cognos' "business intelligence" offerings generated $112.8 million, a 35 percent improvement from the comparable quarter a year ago. However, that segment was "modestly" below expectations, said Ron Zambonini, president and CEO.

"We remain very positive with respect to the health and growth prospects for the business intelligence market, and the Company's leadership position within this market," Zambonini said.
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