Lawson Lowers Earnings Estimate - TheStreet

Lawson Lowers Earnings Estimate

The software company lowered its earnings and revenue estimates for the first fiscal quarter.
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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.

Competitor

Oracle

(ORCL) - Get Report

has lately stepped up its focus on industry-specific software, acquiring companies that deliver software to run retail and insurance businesses.