Lawson Shares Climb, Outlook Called 'reasonable'

NEW YORK (AP) — Shares of Lawson Software Inc. climbed Friday after the company gave what one analyst called a "reasonable" outlook for its fiscal fourth quarter.

The company, which makes software for manufacturers and other businesses, posted lower sales for its fiscal third quarter Thursday, but its profit climbed as it also cut costs and took fewer charges.

Deutsche Bank analyst Greg Dunham, who rates Lawson "Buy," said a better product mix drove the quarter's higher margins — 15 percent compared with the analyst's 11 percent estimate. He called the company's results solid, especially given the economic downturn that is reducing customers' budgets.

"We see the 4Q outlook as reasonable and continue to see the shares as undervalued," the analyst wrote in a note to investors. Lawson forecast adjusted earnings of 8 cents to 10 cents per share for the current quarter, which ends May 31. Analysts surveyed by Thomson Reuters expect a profit of 10 cents per share.

Shares of St. Paul, Minn.-based Lawson rose 18 cents, or 3.8 percent, to $4.86 in afternoon trading. The stock has traded in the 52-week range of $2.71 and $8.78.