Revenue recognition blues
Word in the market is that the underlying business is actually quite robust at present, so hopefully this will be a blip for the company rather than anything more serious. Cognos 8 means that there is quite a lot of potential for Cognos to gain revenue as customers upgrade to the new software, which features much better integration between ReportNet and Powerplay, and a complete revamp of Metrics Manager, which is retitled Metrics Studio. These improvements should see Cognos customers steadily upgrading, and so having a positive impact on the company's already pretty healthy finances. However perhaps some more conservative interpretation of US GAAP on their part would be wise.