Lawson's Net Up on License Fees

The software company posts first-quarter profit as its license fee revenue rises.
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Lawson Software

(LWSN)

reported a first-quarter profit, reversing a year-ago loss, as stronger revenue from license fees helped offset relatively flat service revenue.

The provider of business application software and consulting services reported net income of $4.2 million, or 4 cents a share, for the first quarter ended Aug. 31. A year earlier, Lawson posted a loss of $417,000, or about break-even on a per-share basis.

The latest quarter's results included about $9.8 million in pretax items, including a $6.3 million charge tied to a separation agreement with former president and CEO Jay Coughlan. The company didn't provide a per-share number for earnings before the items but said it believes that it "significantly exceeded" Thomson First Call's mean analyst estimate if the results were adjusted.

According to First Call, analysts expected earnings of 4 cents a share.

Lawson's first-quarter revenue rose to $87.9 million from $82.7 million a year earlier, topping Wall Street's forecast of $85 million. Services revenue declined slightly to $69.3 million from $69.4 million, while license fee revenue grew to $18.6 million from $13.3 million a year earlier.

Lawson shares recently jumped 7.8% in after-hours trading to $7.05, according to Inet.