Business Management vendor Lawson Software said Monday its Q3 sales were double those of last year, but that it lost $10 million in the quarter on restructuring costs. Sales revenue soared 118% to $191.2 million, ahead of consensus estimates of $188 million. Its $10 million loss ($0.05/share) reversed a $10 million ($0.09/share) gain in Q3 2006, which the company attributed to an $11.5 million charge it took for restructuring costs from its April 2006 $480 million acquisition of Sweden's Intentia (including compensation charges for 350 jobs it expects to eliminate over the next five years), and higher marketing costs. Before items, Lawson earning $11.4 million ($0.06/share), beating Street estimates of $0.03. It gave Q4 guidance of revenue of $188-196 million and EPS excluding charges of $0.03-0.05 -- analysts expected $0.04 on revenue of $197 million. Last week, shares jumped 11% when the company said Q3 sales would beat estimates. In after-hours trading, shares lost 2.8% to $8.65 after dropping as much as 4.4%.
Sources: Press release, TheStreet.com, Bloomberg
Commentary: Lawson: Still a Flat Line [Fool]
Stocks/ETFs to watch: Lawson Software Inc. (LWSN). Competitors: Oracle Corp. (ORCL), SAP AG (SAP), Microsoft Corp. (MSFT). iShares Goldman Sachs Software Index Fund (IGV), Software HOLDRS Trust ETF (SWH), PowerShares Dynamic Software (PSJ)
Conference call transcript: Lawson Software F2Q07 (Qtr End 11/30/06) Earnings Call Transcript
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