Lawson Software, Inc. (Nasdaq:LWSN), today reported revenues of
$87.7 million for its fiscal 2006 third quarter ended Feb. 28,
2006, an increase from revenues of $82.7 million in its fiscal 2005
third quarter. License fee revenues were $15.1 million in the third
quarter, up from $13.9 million in the fiscal 2005 third quarter.
Services revenues were $72.6 million in the quarter, up from $68.8
million in the comparable fiscal 2005 third quarter. The increase
in license fees in the third quarter is primarily attributed to an
increase in the total number of license transactions. Services
revenue results are attributed to a steady growth in maintenance
revenues and an increase in consulting and implementations
reflecting the increased software licensing activity throughout
fiscal 2006. Operating income in the fiscal 2006 third quarter
increased to $10.4 million, compared with operating income of $2.5
million in the fiscal 2005 third quarter. The improvement in
operating income was driven by the increase in revenues as well as
reduced costs and expenses. Cost of revenues decreased 3 percent
from the prior year, primarily resulting from initiatives to reduce
services costs. Operating expenses decreased 4 percent from the
prior year, primarily due to a reduction in G&A expense of $2.1
million from SEC-related legal costs incurred in the prior year,
and cost-control efforts and headcount reductions, partially offset
by increases in expenses relating to the pending acquisition of
Intentia International AB. GAAP net income increased to $10.0
million, or $0.09 per diluted share, compared with $2.8 million, or
$0.03 per diluted share, in the fiscal 2005 third quarter. GAAP net
income in the third quarter was favorably impacted by $1.5 million
more of interest income, the reversal of a $1.4 million tax
valuation allowance resulting from the determination that
previously recorded tax assets are now more likely than not to be
realized prior to their expiration dates, and a release of $0.5
million of tax reserves. As a result, Lawson had a low effective
tax rate of 24.4 percent in the quarter. "Lawson delivered another
quarter of solid financial performance and improved profitability
driven by our continuing focus on sales execution and effective
business management," said Harry Debes, Lawson president and chief
executive officer. "On a year-over-year basis, our revenues are
growing, our cost of services is declining, and we are managing
operating expenses at prudent levels. I am pleased with the
progress we are making in building Lawson into a more profitable
and predictable business. Our solution set has been greatly
enhanced with the recently announced Lawson 9 product family, which
consolidates our technology layer, enhances our business
applications and lays the foundation for a service-oriented
architecture (SOA) under which all future applications will be
developed. Overall, we are continuing to strengthen our foundation
for the future as we build our sales team, improve services margins
and develop more customer references." For the nine months ended
Feb. 28, 2006, GAAP net income was $20.7 million, or $0.19 per
diluted share, on total revenues of $264.6 million, an improvement
over a net loss of $0.7 million, or a net loss of $0.01 per diluted
share, on total revenues of $248.4 million in the comparable fiscal
2005 period. Operating income for the nine months ended Feb. 28,
2006, was $20.9 million, an improvement compared to an operating
loss of $4.8 million in the comparable fiscal 2005 period.
Operating expenses for the nine-month period ended Feb. 28, 2006,
decreased 1 percent from the prior year, primarily due to a
reduction in G&A expense of $2.6 million from SEC-related legal
costs incurred in the prior year, and expense declines from
continuing cost control efforts and headcount reductions in the
company, offsetting a $6.3 million non-cash charge for option
expense relating to the former president and CEO's negotiated
separation agreement reflected in G&A expenses in the first
fiscal quarter as well as an increase in expenses relating to the
acquisition of Intentia. Lawson's fiscal 2006 third quarter GAAP
operating results include $2.9 million in pre-tax items for the
three-month period and $16.4 million in pre-tax items for the
nine-month period, compared with $4.2 million for the three-month
period and $14.6 million for the nine-month period of fiscal 2005.
These pre-tax items primarily include restructuring, certain
non-cash acquisition related amortization expense, non-cash
stock-based compensation, and integration planning expenses
relating to the pending merger with Intentia International. In
addition, Lawson's fiscal 2006 nine-month GAAP net income includes
the benefits of added interest income on a tax refund of $0.4
million, the release of income tax reserves of $2.1 million as a
result of closing income tax-related matters, and the change in our
deferred tax valuation allowance of $1.4 million in the third
quarter which was driven by improving results. Lawson provides this
list for the financial analysts and investors who exclude one or
more of these items in developing their financial models and
estimates of the company's performance. If analysts adjust their
models for all of these items, Lawson exceeded the Thomson First
Call consensus third quarter estimate for the company's EPS
performance. See the supplemental information at the end of this
news release for more detail on these items. Other highlights for
the fiscal 2006 third quarter: -- Cash, cash equivalents and
marketable securities increased to $277.9 million, up from $260.8
million in the fiscal 2006 second quarter -- Total deferred
revenues of $76.7 million increased $2.5 million from the second
quarter -- Software license revenue increased more than 8 percent
year-over-year -- 131 deals were signed, up from 100 in the third
quarter of fiscal 2005 -- 13 new customers were signed at an
average selling price of $394,000, compared with 10 new customers
at an average selling price of $478,000 in the third quarter of
fiscal 2005 -- Seven deals greater than $500,000 were signed in the
quarter, up from six in the prior year, but fewer of these large
deals were greater than $1 million (1 compared with 4) --
Significant software license agreements were signed with ExpressJet
Holdings, Guilford County in North Carolina, Nanticoke Health
Services, Providence Health and Services, and Triad Hospitals, Inc.
-- The multi-year license agreement signed with Triad Hospitals,
Inc. - second largest deal signed in fiscal 2006 - is anticipated
to primarily be implemented (and accordingly result in revenues) in
fiscal 2007 and future years as part of Triad's $1.3 billion
healthcare information technology initiative -- Lawson announced
the Lawson 9 family of products Acquisition Update On June 2, 2005,
Lawson Software and Intentia International AB announced their
agreement to combine in an all-stock transaction. On March 17,
2006, Lawson announced that the U.S. Securities and Exchange
Commission declared effective the Form S-4 Proxy
Statement/Prospectus pertaining to the proposed transaction. The
company also announced that Lawson will hold a meeting of
stockholders on April 17, 2006, to approve matters relating to the
proposed combination of the two companies, as well as conduct
business related to Lawson's annual meeting for fiscal year 2005.
On March 24, 2006, Lawson and Intentia announced that the Swedish
prospectus was registered by the Swedish Financial Supervisory
Authority. The Swedish prospectus was mailed to Intentia
securityholders who are non-U.S. persons on or about March 27,
2006. The tender period will expire on April 24, 2006. Lawson and
Intentia have a timetable to close the transaction before the
amended termination date of April 30, 2006, subject to stockholder
approval and sufficient tender by the Intentia security holders.
Conference Call and Webcast The company will host a conference call
to discuss its third quarter results and future outlook at 4:30
P.M. Eastern Time (3:30 P.M. Central Time) April 6, 2006.
Interested parties may listen to the call by dialing 800-857-4748
(passcode Lawson 46) and international callers 1-210-234-7123. A
live webcast will also be available on www.lawson.com. Interested
parties should dial into the conference call or access the webcast
approximately 10-15 minutes before the scheduled start time. A
replay will be available approximately one hour after the
conference call concludes and will remain available through
Thursday, April 13, 2006. The replay number is 800-839-4571 and
international 1-203-369-4013. The webcast will remain on
www.lawson.com for approximately two weeks. About Lawson Software
Lawson Software provides business application software and
consulting services to services organizations in the healthcare,
retail, government and education, banking and insurance and other
markets. Lawson's software suites include enterprise performance
management, distribution, financials, human capital management,
procurement, retail operations and service process optimization.
With headquarters in St. Paul, Minn., Lawson has offices and
affiliates serving North and South America, Europe, and Africa.
Visit www.lawson.com for more information. Lawson Software and
Lawson are registered trademarks of Lawson Software, Inc. All
rights reserved. Forward-Looking Statements This press release
contains forward-looking statements that contain risks and
uncertainties. These forward-looking statements contain statements
of intent, belief or current expectations of Lawson Software, Inc.,
and its management. Such forward-looking statements are not
guarantees of future results and involve risks and uncertainties
that may cause actual results to differ materially from the
potential results discussed in the forward-looking statements. The
company is not obligated to update forward-looking statements based
on circumstances or events that occur in the future. Risks and
uncertainties that may cause such differences include but are not
limited to: uncertainties in the company's ability to realize
synergies and revenue opportunities anticipated from the Intentia
International acquisition; uncertainties in the software industry;
global military conflicts; terrorist attacks in the United States,
and any future events in response to these developments; changes in
conditions in the company's targeted service industries; increased
competition and other risk factors listed in the company's most
recent Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission and as included in other documents the company
files from time to time with the Commission. -0- *T LAWSON
SOFTWARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share data) (unaudited) Three Months Ended
Nine Months Ended -------------------------
------------------------- February 28, February 28, February 28,
February 28, 2006 2005 2006 2005 ------------ ------------
------------ ------------ Revenues: License fees $15,099 $13,924
$51,824 $40,370 Services 72,596 68,790 212,822 208,028 ------------
------------ ------------ ------------ Total revenues 87,695 82,714
264,646 248,398 ------------ ------------ ------------ ------------
Cost of revenues: Cost of license fees 2,727 2,232 7,922 7,511 Cost
of services 32,576 34,260 99,213 107,764 ------------ ------------
------------ ------------ Total cost of revenues 35,303 36,492
107,135 115,275 ------------ ------------ ------------ ------------
Gross profit 52,392 46,222 157,511 133,123 ------------
------------ ------------ ------------ Operating expenses: Research
and development 14,325 15,527 42,875 46,828 Sales and marketing
17,655 17,681 56,092 58,216 General and administrative 9,644 10,325
36,555 26,486 Restructuring - (153) 5 5,237 Amortization of
acquired intangibles 346 391 1,077 1,160 ------------ ------------
------------ ------------ Total operating expenses 41,970 43,771
136,604 137,927 ------------ ------------ ------------ ------------
Operating income (loss) 10,422 2,451 20,907 (4,804) ------------
------------ ------------ ------------ Other income: Interest
income 2,814 1,281 7,486 2,845 Interest expense (1) (11) (26) (39)
------------ ------------ ------------ ------------ Total other
income 2,813 1,270 7,460 2,806 ------------ ------------
------------ ------------ Income (loss) before income taxes 13,235
3,721 28,367 (1,998) Provision (benefit) for income taxes 3,228 961
7,627 (1,321) ------------ ------------ ------------ ------------
Net income (loss) $10,007 $2,760 $20,740 $(677) ============
============ ============ ============ Net income (loss) per share:
Basic $0.10 $0.03 $0.20 $(0.01) ============ ============
============ ============ Diluted $0.09 $0.03 $0.19 $(0.01)
============ ============ ============ ============ Shares used in
computing net income (loss) per share: Basic 103,572 99,342 102,384
98,651 ============ ============ ============ ============ Diluted
108,033 104,899 106,877 98,651 ============ ============
============ ============ LAWSON SOFTWARE, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) February 28,
May 31, 2006 2005 ------------ ------------ ASSETS ------ Current
assets: Cash and cash equivalents $187,140 $187,744 Marketable
securities 90,264 43,099 Trade accounts receivable, net 49,847
42,907 Other current assets 20,966 28,574 ------------ ------------
Total current assets 348,217 302,324 ------------ ------------
Long-term marketable securities 496 3,770 Property and equipment,
net 12,371 13,574 Goodwill and other intangible assets, net 68,685
75,346 Other assets 33,717 25,704 ------------ ------------ Total
assets $463,486 $420,718 ============ ============ LIABILITIES AND
STOCKHOLDERS' EQUITY ------------------------------------- Current
liabilities: Current portion of long-term debt $300 $1,836 Accounts
payable and other accrued liabilities 51,010 45,507 Deferred
revenue 73,713 76,571 ------------ ------------ Total current
liabilities 125,023 123,914 ------------ ------------ Long-term
deferred revenue 2,996 1,284 Other long-term liabilities 3,118
2,465 ------------ ------------ Total liabilities 131,137 127,663
------------ ------------ Stockholders' equity: Common stock 1,152
1,124 Additional paid-in capital 355,571 338,666 Treasury stock, at
cost (70,311) (72,348) Deferred stock-based compensation (229) (41)
Retained earnings 43,473 22,733 Accumulated other comprehensive
income 2,693 2,921 ------------ ------------ Total stockholders'
equity 332,349 293,055 ------------ ------------ Total liabilities
and stockholders' equity $463,486 $420,718 ============
============ LAWSON SOFTWARE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months
Ended Nine Months Ended ------------------- -------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 28, 2006 2005 2006 2005 ---------
--------- --------- --------- Cash flows from operating activities:
Net income (loss) $10,007 $2,760 $20,740 $(677) Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: Depreciation and amortization 3,281 3,776 10,573 12,258
Deferred income taxes (1,167) 3,667 (1,102) 3,828 Provision for
doubtful accounts, net of recoveries (199) (575) (1,303) 413 Loss
on the disposal of assets - 1 - 1 Tax benefit from stockholder
transactions 2,446 1,097 4,255 2,955 Amortization of stock-based
compensation 98 64 337 171 Stock-based compensation - - 6,368 -
Amortization of discounts on notes payable (1) 19 17 67
Amortization of discount and accretion of premium on marketable
securities (274) 30 (311) 119 Changes in operating assets and
liabilities, net of effect from acquisitions: Trade accounts
receivable (716) 6,436 (5,637) 22,524 Prepaid expenses and other
assets (3,098) (4,660) 3,628 (6,918) Accounts payable 606 1,669
(935) (1,030) Accrued and other liabilities (141) (2,987) (1,186)
(6,710) Income taxes payable 1,870 - 4,327 (999) Deferred revenue
2,486 (150) (1,146) (8,915) --------- --------- --------- ---------
Net cash provided by operating activities 15,198 11,147 38,625
17,087 --------- --------- --------- --------- Cash flows from
investing activities: Cash paid in conjunction with acquisitions,
net of cash acquired (522) - (2,929) - Purchases of marketable
securities (23,704) (65,850) (116,425) (447,864) Sales and
maturities of marketable securities 21,277 79,601 72,773 435,608
Purchases of property and equipment (1,855) (1,426) (2,967) (3,101)
--------- --------- --------- --------- Net cash (used in) provided
by investing activities (4,804) 12,325 (49,548) (15,357) ---------
--------- --------- --------- Cash flows from financing activities:
Payments on debt (717) (841) (1,684) (1,323) Exercise of stock
options 3,526 2,531 9,266 6,378 Issuance of treasury shares for
employee stock purchase plan 1,240 1,579 2,737 3,947 Repurchase of
common stock - - - (10,000) --------- --------- --------- ---------
Net cash provided by (used in) financing activities 4,049 3,269
10,319 (998) --------- --------- --------- --------- Increase
(decrease) in cash and cash equivalents 14,443 26,741 (604) 732
Cash and cash equivalents at beginning of period 172,697 46,387
187,744 72,396 --------- --------- --------- --------- Cash and
cash equivalents at end of period $187,140 $73,128 $187,140 $73,128
========= ========= ========= ========= LAWSON SOFTWARE, INC.
SUPPLEMENTAL INFORMATION (in thousands) (unaudited) Three Months
Ended Nine Months Ended -------------------------
------------------------- February 28, February 28, February 28,
February 28, 2006 2005 2006 2005 ------------ ------------
------------ ------------ Selected Pretax Expense: Restructuring $-
$(153) $5 $5,237 Amortization of acquired intangibles 346 391 1,077
1,160 Amortization of purchased maintenance contracts (Cost of
Service) (1) 981 1,005 2,969 2,991 Amortization of software (Cost
of License Fees) 805 822 2,423 2,448 Non-cash stock- based
compensation - 63 42 170 Non-cash stock- based compensation (2) - -
6,261 - Integration related (Cost of Service) (3) 24 - 262 -
Integration related (R&D) (3) 62 - 179 - Integration related
(Sales & Marketing) (3) 35 - 900 - Integration related
(G&A) (3) 629 - 2,324 - SEC-related legal costs (G&A) -
2,100 - 2,640 ------------ ------------ ------------ ------------
Total $2,882 $4,228 $16,442 $14,646 ============ ============
============ ============ Interest income on tax refund $- $- $357
$- ============ ============ ============ ============ Effective
tax rate for financial analysts' modeling (4) 39% 38% 39% 38% (1)
Service revenue from the acquired maintenance contracts for the
three months ended February 28, 2006 and February 28, 2005 was
$2,954 and $2,764, respectively. Service revenue from the acquired
maintenance contracts for the nine months ended February 28, 2006
and February 28, 2005 was $8,764 and $8,447, respectively. (2)
Represents a non-cash charge for recording of option expense
resulting from a negotiated separation agreement with former
president and CEO in the first quarter of fiscal 2006. (3)
Represents integration related expenses relating to the pending
merger with Intentia International. (4) For the three and nine
months ended February 28, 2006, the non- GAAP provision for income
taxes is calculated at a rate of 39%. There were two discrete items
for the three months ended February 28, 2006 included in the GAAP
provision, an 11% impact from the reversal of the valuation
allowance and a 4% impact from the release of tax reserves. There
were two discrete items for the nine months ended February 28,
2006, a 5% impact from the reversal of the valuation allowance and
a 7% impact from the release of tax reserves. There were no
significant discrete items for the three and nine month periods
ended February 28, 2005. *T
Lawson Software, Inc. (MM) (NASDAQ:LWSN)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
Lawson Software, Inc. (MM) (NASDAQ:LWSN)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024