SAN FRANCISCO -- Lawson Software (LWSN) warned late Monday that first-quarter earnings would fall short of guidance.
For the quarter that ended in August, earnings per share, excluding special items, is now expected to be 4 cents or 5 cents. The St. Paul, Minn. company had previously projected earnings of 6 cents or 7 cents a share. Analysts were looking for EPS of 7 cents, according to Thomson Reuters.
Lawson also lowered its revenue expectations to a range of $190 million and $192 million, from a prior range of $195 million to $200 million. Analysts were expecting a top line of $198.1 million.
The company, which sells industry-specific business software, posted revenue of $187.4 million in the same quarter of last year.
Shares were up 17 cents, or 2.5%, to $7.03 in extended trading.
"We have begun to see some impact from the economy with sales in our August quarter slower than expected," CEO Harry Debes said in a statement. While sales exceeded forecasts in the healthcare and government sectors, "sales of our M3 solutions in manufacturing-related verticals in the U.S. and Europe were lower than we forecasted."
Consulting services revenues in the U.S. and Europe were also lower than expected. "While I remain confident about our business over the longer-term, we are evaluating the near-term outlook based on the softening economy and related factors," Debes said.
Lawson will release its full earnings report and outlook Oct. 2.
has lately stepped up its focus on industry-specific software, acquiring companies that deliver software to run retail and insurance businesses.