Cognos Inc. has announced reduced expectations for its Q1 results, which will close on May 31, 2001. While the quarter is not yet completed, the company expects revenue for the quarter to be $106 million to $110 million, compared with $108.7 million for last year.
Net results are expected to be between breakeven and a net loss of $4 million or $0.04 per share. This compares with $12 million ($0.13) last year.
Cognos also announced cost-cutting measures. These include a workforce reduction of 300 people, or about 10%. As a result of these measures, the company will record a special charge of approximately $13.0 million (pre tax) or $0.10 per share in the first quarter.
“A decision like this is a difficult one because it affects our people,” said Ron Zambonini, Cognos president and CEO. “Even at this late stage of our quarter we felt it was imperative to proceed with this difficult but necessary action.
“Our objective is to emerge from this economic slowdown a much stronger company.”