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Lawson Software fiscal 3Q profit falls 71 percent

Wed, 04/07/2010 - 1:30pm
The Associated Press

Lawson Software Inc. on Wednesday reported a 71 percent drop in its fiscal third-quarter net income as higher costs more than offset an increase in revenue.

The business software company earned $1.8 million, or a penny per share, compared with a profit of $6.2 million, or 4 cents per share, in the same period a year earlier.

Excluding one-time items, Lawson earned 11 cents per share in the period ended Feb. 28.

Revenue rose 7 percent to $186.2 million.

Analysts polled by Thomson Reuters predicted profit of 9 cents per share on revenue of $179.2 million. Analyst estimates typically exclude one-time items.

Lawson said software revenue rose by 9 percent to $121 million, but the gain was inflated by 2 percent due to foreign currency translation.

The company's purchase of integration and technology services firm Healthvision Solutions Inc. in January for $160 million in cash added $4.8 million to revenue but hurt net income by $1.5 million, or a penny per share, due to higher operating costs.

Looking ahead, Lawson said it expects fiscal fourth-quarter revenue of $194 million to $198 million and earnings of 4 cents per share to 6 cents per share. Excluding one-time items, profit should range from 10 cents per share to 12 cents per share, Lawson said.

Analysts forecast earnings of 11 cents per share and revenue of $201.4 million.

Shares of Lawson were down 16 cents, or 2.3 percent, to $6.80 in after-hours trading. The stock earlier added 5 cents to end regular trading at $6.96.

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