In technology, acronyms are often meaningless. In fact, they are often new garb for old products.
But there is one acronym that seems to have substance: BI. This stands for business intelligence, and a leader in the field is Cognos
Well, yesterday, Cognos answered this very question for its investors on its quarterly conference call. The company posted revenues of $185.2 million, which was a 17% increase from the same period a year ago. Net income was $27.6 million, which was a 52% increase from the same period a year ago.
While licensing growth has been slow -- if nonexistent -- in the software industry, Cognos had 21% growth in the past quarter, reaching $75.4 million. In fact, for the first four quarters of the release of ReportNet, licensing revenues for the product have exceeded $100 million. In the enterprise world, this is a veritable best-seller.
Companies are demanding business intelligence, and Cognos has a complete solution. Some of the customer wins in the past quarter include Georgia Pacific
When there is strong growth, the benefits can be tremendous for software companies, especially in terms of cash flows. In the past quarter, Cognos added $24 million to its cash balance, which now stands at $440.4 million.
In light of the strength of ReportNet, Cognos plans to expand its sales force. The company also wants to leverage its partnership networks, such as with Accenture
Despite the strong quarter, Wall Street's response was ho-hum, as the stock price inched up $0.60 to $34.54. No doubt, investors are still "on strike" when it comes to the software sector.
Fool contributor Tom Taulli does not own the companies mentioned in the article.