Shares of Cognos, Inc. (TSX: CSN) fell more than 2 percent on Friday, a day after Canada’s largest software developer forecast a second fiscal quarter profit short of analysts’ estimates.

Cognos stock fell 98 cents, or 2.47 percent, to $38.64 in mid-day trading on the Nasdaq Stock Market.

The firm reported fiscal first quarter adjusted earnings of 32 cents per share, which met Wall street expectations.

However the company said that for the quarter ending August 31, it expected to earn between 34 cents and 39 cents, short of analyst expectations of 41 cents per share.

The business-intelligence software maker said that in its first quarter it earned $22.4 million, or 25 cents a share, up from $14.5 million, or 16 cents a share, a year ago.

Excluding certain amortization compensation expenses, earnings were $29.2 million, or 32 cents a share, compared with 19.8 million, or 22 cents a share, last year.

The company saw revenue for the three months ended May 31 rise to $236.7 million from $217 million.

Analysts polled by Thomson Financial had forecast, on average, a per-share profit of 32 cents on revenue of $237 million.

We achieved over 50 percent growth in earnings, despite the recent strength of the Canadian dollar, Chief Executive Rob Ashe said in a statement.

The Ottawa-based company’s outlook for the second fiscal quarter indicated that that for the three months ending Aug. 31, 2007, revenue is expected to be in the range of $245 million to $255 million.

Earnings per share are expected to be in the range of 25 to 30 and 34 to 39 cents on an adjusted basis, short of the 41 cents expected by Wall Street.