Our SEC filings contain further information about risk factors that could cause actual results to differ from managements’ expectations. We do not obligate ourselves to update the forward-looking statements for circumstances or events that occur in the future. Before we start our call, I would also like to remind you that in addition to reporting financial results in accordance with Generally Accepted Accounting Principles, Lawson also reports non-GAAP financial results, and our remarks today will focus on our non-GAAP results, unless otherwise noted. All of the discussion of our use of non-GAAP results as well as a detailed reconciliation of non-GAAP to GAAP results is included in our press release.And lastly, I will remind you that we have a supplemental summary of historical key business metrics on our website at www.Lawson.com/investor for your reference. Now, let me turn the call over to Harry Debes. Harry Debes Thank you, Barbara and good afternoon everyone. I will begin today’s call with some comments on Q4, the Healthvision integration, and performance in our business segments. Our CFO, Stefan Schulz, will provide the financial highlights from the quarter, financial guidance for Q1, and a view of our goals for fiscal 2011. Then I will wrap up with some additional discussion on our full year’s results and our key focus areas for FY11. After that we will take your questions. Now let us begin. As you can see from our press release we had an excellent quarter. In fact, we achieved record company performance in several areas. We had strong year-over-year growth in many key financial metrics. For example, license revenues grew 13%. Total revenues increased 7%. Services margins increased 40%. We generated record levels of cash flow. Non-GAAP operating margin increased 19% to a 16.5% margin, and non-GAAP earnings per share grew 20% to $0.12 for the quarter.
The 16.5% operating margin and the $0.12 earnings per share are the best quarterly operating results we have ever achieved as a public company. On the sales side, we had the highest rate of pipeline conversion since mid-2008, and this strong performance was organic. So our same-store sales figures, excluding Healthvision, were very healthy. For example, in Q4, organic license revenue grew 8%, organic operating income increased 9%. Our operating margin was 16% and that was excluding Healthvision.Our earnings per share, excluding Healthvision, was $0.11, up from $0.10 in Q4 ‘09. Now Healthvision is certainly adding incremental revenue and profit to our results. But the point is that we grew and improved our core business before any benefit from the acquisition. And I’m not sure many of our ERP competitors will be able to make the same claims. With that introduction, let me give you an update on Healthvision. The acquisition which occurred in mid-January 2010 has been very successful. Integration of Healthvision into Lawson’s Healthcare business unit is now complete, including sales and services, customer support and back office operations. We have begun fiscal 2011 with a single integrated healthcare business, and during all of that integration work we even issued a major new release of our Cloverleaf application. We signed 97 Healthvision software deals since the acquisition, and I will remind you that these deals are significantly smaller in size and therefore reduce our average selling price. We have also now started to realize some of the potential for cross sell opportunities. In Q4, we closed two new Cloverleaf deals with existing Lawson customers, and we have several million dollars of additional cross sell opportunities in the pipeline. The emerging markets for our health information exchange solution also continues to look intriguing due to the need to share patient data among hospitals, clinics and doctors' offices. And while the core business rationale for this acquisition was the Cloverleaf integration solution, the up side of the acquisition is the health information exchange opportunity.
Now let us discuss our overall sales and segment performance. Total contracting in Q4 was $38 million. This was a 37% sequential increase from contracting in Q3, but down 13% compared to Q4 in fiscal 2009. I will remind you that last year in fiscal ’09 due to the uncertain economic conditions we created a sales stimulus program called VIP. The VIP program achieved its objectives and generated a one-time contracting boost of approximately $21 million in revenue, about 15 million of which fell into Q4 of ’09 and 6 million in Q1 of fiscal 10. Since we did not offer a similar campaign this year, we did not expect to exceed last year’s Q4 contracting levels. The $38 million of contracting in the quarter just ended was right in line with our forecasts.Read the rest of this transcript for free on seekingalpha.com