Lawson Software Profit Rises Despite Sales Decline

ST. PAUL, Minn. (AP) — Lawson Software Inc. said Thursday that despite an 18 percent drop in sales, its profit jumped in the latest quarter from a year-ago period hurt by a hefty impairment charge.

The company said it earned $7.4 million, or 4 cents per share, in its fiscal third quarter ended Feb. 28, compared with $727,000, or less than a penny per share, a year earlier.

Excluding items such as an $11.1 million expense for restructuring and amortizing goodwill, the company said it would have earned $16.4 million, or 10 cents per share, in the February quarter, compared with 8 cents per share a year ago.

Analysts, who usually exclude special items from their forecasts, had expected the company to earn 8 cents per share, according to a survey by Thomson Reuters.

Revenue fell to $173.8 million from $212.9 million a year earlier, missing the $184.8 million in sales expected by analysts. License fees dropped 22 percent, as manufacturers bought less software amid the recession, and consulting revenue fell 34 percent.

Still, earnings rose as the company cut costs, took fewer charges, paid less in income taxes, and reduced its outstanding share count by 8 percent.

The St. Paul-based company makes software for customers in manufacturing, distribution, maintenance and health care.

Lawson shares rose 32 cents, or 7.3 percent, to close at $4.68.