Cognos reports record fourth quarter and full year results

April 4, 2003 -

Cognos Incorporated (Nasdaq: COGN; TSX: CSN - all figures in US dollars), the world leader in business intelligence (BI) and corporate performance management, has announced results for the company’s fourth quarter and full fiscal year 2003, ended February 28, 2003. Revenue for the quarter was $163.7 million, an increase of 15% from the fourth quarter of last year, when revenue was $142.8 million.

Net income for the fourth quarter of fiscal 2003 was $29.6 million, resulting in diluted earnings per share of $0.33. The company recorded a lower tax rate in the quarter, which contributed $0.03 to the diluted earnings per share. This compares to net income of $10.1 million and diluted earnings per share of $0.11 for the fourth quarter of the prior fiscal year. Excluding special charges, net income was $25.1 million, or $0.27 per share in the fourth quarter of the prior fiscal year.

Revenue for the full fiscal year 2003 was $551.0 million, an increase of 12% compared with revenue of $491.3 million for the previous year. Net income for fiscal year 2003 was $73.1 million, or $0.81 per share. This compares with the prior year’s net income of $19.4 million, or $0.21 per share. Excluding special charges in the prior fiscal year, net income was $43.4 million, or $0.48 per share.

Business intelligence revenue continued its strong growth in the quarter, reaching $155.3 million, an increase of 16% from the fourth quarter of last year. BI license revenue increased 6% to $77.3 million, compared to $73.0 million in the same period last year.

Highlights of the quarter

• Acquisition of Adaytum, the world leader in enterprise planning, extends richness of Cognos’ corporate performance management solution
• Double-digit percentage growth for BI revenue in all three major geographies - North America, Europe, and Asia-Pacific
• Introduction of Series 7 Version 2 drives continued strong momentum and positive customer response for the Cognos solution
• Strong operating margin of 23.8%

The company’s balance sheet remains strong. Operating cash flow was $55.7 million. As a result, the company exited the quarter with $242.3 million in cash, cash equivalents, and short-term investments.

• We are extremely pleased with the results for the fourth quarter and the full year," said Cognos chief executive officer, Ron Zambonini. "It was rock solid on all fronts. Cognos employees are delivering and our customers are responding. Our new product pipeline and sound execution are driving competitive success. And the integration of Adaytum’s market-leading performance planning software enhances the richness of our corporate performance management solution.
• Major organisations throughout the world continue to make significant commitments to the Cognos business intelligence and corporate performance management solution. The company received large orders from leading organisations such as AT&T, BMW, Citigroup, DaimlerChrysler, Dow Chemical, Fiducia, General Electric, Lucent, Metropolitan Life, Pfizer, Sun Trust Bank, Union Bank of Switzerland, and the US Army, Coast Guard, and Navy.
• The outlook for Cognos is excellent. The integration of Adaytum is on track and we are already seeing substantial synergy in the marketplace. We have extended our leadership position in the BI and enterprise planning markets. Our competitive position has never been better. And the growth opportunities for Cognos are excellent.
• I am proud of the hard work and dedication of the Cognos team and their accomplishments last year, and look forward to building on this momentum in fiscal 2004."

Business outlook

Management offers the following outlook for the first quarter of fiscal 2004, ending May 31, 2003:

• Revenue is expected to be in the range of $146 million to $150 million.
• Diluted earnings per share are expected to be in the range of $0.12 to $0.14.

About Cognos, an IBM Company
Cognos, an IBM company, is the world leader in business intelligence and performance management solutions.

It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.
Cognos was acquired by IBM in January 2008.

For more information, visit http://www.ibm.com/software/data/ and http://www.cognos.com/uk/

For further information about Cognos, please contact:
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