Shares of Cognos Inc. rose Friday a day after the Ottawa software company warned it expects to see a decrease its third-quarter profits and sales.

After an initial selloff that pushed the stock down about three per cent, Cognos stock rose 89 cents to close at $39.19 on the Toronto Stock Exchange.

Late Thursday, Cognos said it expects diluted earnings per share to be between 28 and 31 cents US for the quarter ended Nov. 30, compared with 37 cents for the same period last year.

Quarterly sales are expected to come in at between $209 million US and $212 million US, compared with $210.4 million the year before

“I am extremely disappointed with our performance this quarter,” said CEO Rob Ashe.

“Our forecasting and execution against large sales opportunities were poor, and our management of the transition to our new BI platform, Cognos 8, proved challenging.”

The company will report its final third-quarter results and business outlook for its fourth quarter Dec. 21.