Since the mid-1970s, Lawson
In the fiscal second quarter, revenues increased 107% to $184.5 million (a big boost came from the Intentia deal). The was a net loss of $3.5 million, or $0.02 per share, which compares to net income of $6.6 million, or $0.06 per share, in the same period a year ago. Basically, Lawson had a myriad of post-acquisition expenses.
Revenues could have been higher, but it seems Lawson is having troubles with its sales force's ability to close contracts. This is nothing new in the software industry; then again, solving such issues is usually no easy task.
Going forward, management forecasts a fiscal third quarter net loss of $0.01 to break even. Revenues are expected to range from $181 million to $189 million.
Lawson is continuing to deal with the huge challenges of merging with a large foreign company (Intentia is based in Europe). Besides cultural differences, there are the complexities of managing two technology platforms.
True, Lawson is selling at 1.3 times its enterprise value, which is a cheap valuation in the software industry. But investors want to see the company get more traction from the Intentia deal -- which, as indicated on the conference call, could easily take the rest of 2007.
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