The business intelligence vendor revealed revenues for the three months to 28 February would be between $143m (£95.3m) and $144.5m. It compares with $118.1m for the same quarter last year.
President and CEO Ron Zambonini admitted: “Preliminary results indicate revenues were slightly below our expectations for the quarter.”
Profits are expected to be between $21m and $22.5m, compared with $21.3m last year.
Pinpointing the blame on the US economy, Zambonini said: “More specifically, early indications point to a shortfall in business intelligence licensing revenue in North America, where a number of customers did not conclude software purchases because of the softening economy.”
He claimed business intelligence licensing revenues had remained steady until February, when Cognos “started to experience hesitancy on the part of commercial customers in North America to make large commitments in light of the current economic outlook”.
Despite the shortfall from licence revenues, Zambonini insisted revenues from support, services and application development tools had exceeded expectations modestly.
One industry watcher said Cognos was not the first and would not be the last US-based business to be affected by the economic slowdown.
“I think the real test will be for these companies to keep their non-US businesses running at top speed and not to cut back resources across the board in reaction to the problem,” he suggested.
This was first published in March 2001