Lawson Software Reports Q2 FY04 Results.Business Editors/High-Tech WritersST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn.--(BUSINESS WIRE)--Dec. 18, 2003 Lawson Software (Lawson Software, St. Paul, MN, www.lawson.com) A software company that specializes in ERP for vertical markets including health care, retail, public sector, professional and financial services. , Inc. (Nasdaq:LWSN), today reported revenues of $84.3 million for its fiscal 2004 second quarter ended Nov. 30, 2003, compared with revenues of $87.8 million in its fiscal 2003 second quarter. License fee revenues were $17.3 million in the second quarter, compared with $19.0 million in the fiscal 2003 second quarter. Services revenues were $67.0 million in the quarter, compared with $68.8 million in the comparable fiscal 2003 second quarter. On a generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis, the company posted a net loss of $1.3 million, or a loss of $0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net loss of $3.5 million, or $0.04 per diluted share in the fiscal 2003 second quarter. The company posted pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $656,000, or $0.01 per diluted share, compared with pro forma net income of $1.0 million in the fiscal 2003 second quarter, or $0.01 per diluted share. Fiscal 2004 second quarter pro forma operations exclude $3.2 million of items consisting of a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , non-cash stock-based compensation, and amortization of acquired software and intangibles. For the details on the company's GAAP reported results and the reconciliation of GAAP operating results to pro forma net income from pro forma operations, see the financial table accompanying this news release - "SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP OPERATING RESULTS TO PRO FORMA NET INCOME." For the six months ended Nov. 30, 2003, on a GAAP basis, the company posted net income of $2.0 million, or $0.02 per diluted share, on total revenues of $172.3 million, compared with a net loss of $5.3 million, or a loss of $0.05 per diluted share, on total revenues of $175.3 million in the comparable fiscal 2003 period. For the six months ended Nov. 30, 2003, the company posted pro forma net income of $4.7 million, or $0.04 per diluted share, compared with pro forma net income of $361,000, or $0.00 per diluted share, in the comparable fiscal 2003 period. Fiscal 2004 six-month pro forma operations exclude $4.5 million of items consisting of a restructuring charge, non-cash stock-based compensation, and amortization of acquired software and intangibles. The company's cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has decreased to $228.9 million at Nov. 30, 2003, from $255.2 million at Aug. 31, 2003. During the second quarter, the company repurchased 1.7 million shares of common stock for a total of $13.7 million and completed two acquisitions for $12.1 million. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) were reduced to 64 during the second quarter, compared with 65 in the fiscal 2004 first quarter. Second Quarter Performance "Improved pipeline execution combined with the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions and operating efficiency improvements we've we've Contraction of we have. we've have made have strengthened the overall health of our business in this fiscal year," said Jay Coughlan, Lawson The name Lawson can refer to a number of different things: People
The company signed 135 deals in the quarter. Of total licensing activity in the fiscal 2004 second quarter, 42 percent came from new customers and 58 percent from existing customers. During the quarter, the company signed 16 new customers at an average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of $445,000, compared with 32 new customers at an average selling price of $319,000 in the second quarter of fiscal 2003. The company signed three software licensing agreements valued at more than $1 million. Significant or strategic wins included: Healthcare - Palmetto palmetto or cabbage palmetto Tree (Sabal palmetto) of the palm family, occurring in the southeastern U.S. and the West Indies. Commonly grown for shade and as ornamentals along avenues, palmettos grow to about 80 ft (24 m) tall and have fan-shaped leaves. Health and Memorial Hospital Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. ; IT - Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Information Technology; Public Sector - Cherokee Cherokee, Native American language Cherokee, language belonging to the Iroquoian branch of the Hokan-Siouan linguistic family. See Native American languages. Nation, Seminole Seminole, Native North Americans whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). They separated (their name means "separatist") from the Creek in the early 18th cent. Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic of Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , and Madison Metropolitan School District Madison Metropolitan School District (MMSD) resides in Madison, Wisconsin, in Dane County. It is the public school district for the cities of Madison, Shorewood Hills and Maple Bluff and includes four high schools, one alternative high school, 11 middle schools, and 31 elementary . Conference Call and Webcast The company will conduct a conference call and webcast for investors beginning at 4:30 p.m. Central Time on Dec. 18. Interested parties may listen to the call by dialing 877-675-5901 (passcode Lawson 1218) and international callers 1-773-756-4624. A live webcast will also be available on www.lawson.com. Interested parties should dial into the conference call or access the webcast approximately 10-15 minutes before the scheduled start time. A replay will be available approximately one hour after the conference call concludes and will remain available through Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Dec. 26. The replay number is 800-678-0740 and international 1-402-998-0871. The webcast will remain on www.lawson.com for approximately two weeks. The webcast will be available through the investor relations Investor relations The process by which the corporation communicates with its investors. space on www.lawson.com. Webcast participants should allow extra time before the webcast to register and, if necessary, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install audio software. About Lawson Software Lawson Software provides business process software solutions that help services organizations in the healthcare, retail, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , public sector, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , and other strategic markets achieve competitive advantage. Lawson's solutions include enterprise performance management, distribution, financials, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , retail operations and service process optimization Process optimization is the practice of making changes or adjustments to a process, to get results. Optimization is the use of specific techniques to determine the most cost effective and efficient solution to a problem or design for a process. . Headquartered in St. Paul, Minn., Lawson has offices and affiliates serving North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Europe, Asia, Africa and Australia. Additional information about Lawson is available at www.lawson.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements. These forward-looking statements, including statements made by Mr. Coughlan, contain statements of intent, belief or current expectations of Lawson Software, Inc., and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to update forward-looking statements based on circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events which occur in the future. In addition to factors discussed above, risks and uncertainties that may cause such differences include but are not limited to: uncertainties in the software industry; global military conflicts; terrorist attacks in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and any future events in response to these developments; changes in conditions in the company's targeted service industries; increased competition and other risk factors listed in the company's most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q filed with the Securities and Exchange Commission and as included in other documents the company files from time to time with the Commission.
LAWSON SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
November 30, May 31,
2003 2003
------------ ---------
ASSETS
Current assets:
Cash and cash equivalents $150,798 $153,071
Marketable securities 71,916 102,266
Trade accounts receivable, net 60,156 62,433
Other current assets 38,969 34,122
------------ ---------
Total current assets 321,839 351,892
Long-term marketable securities 6,220 5,175
Property and equipment, net 19,584 21,364
Goodwill and other intangible assets, net 61,782 43,943
Other assets 8,750 9,835
------------ ---------
Total assets $418,175 $432,209
============ =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $905 $896
Accounts payable and other accrued liabilities 48,865 51,096
Deferred revenue and customer deposits 78,350 86,642
------------ ---------
Total current liabilities 128,120 138,634
Long-term debt, less current portion 968 255
Other long-term liabilities 3,653 3,921
------------ ---------
Total liabilities 132,741 142,810
------------ ---------
Stockholders' equity:
Preferred stock - -
Common stock 1,082 1,058
Additional paid-in capital 319,083 309,637
Treasury stock, at cost (46,813) (28,824)
Deferred stock-based compensation (1,691) (3,117)
Retained earnings 11,436 9,480
Accumulated other comprehensive gain 2,337 1,165
------------ ---------
Total stockholders' equity 285,434 289,399
------------ ---------
Total liabilities and stockholders' equity $418,175 $432,209
============ =========
LAWSON SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except per share data)
Three Months Ended Six Months Ended
------------------ -----------------
Nov 30, Nov 30, Nov 30, Nov 30,
2003 2002 2003 2002
--------- -------- -------- --------
Revenues:
License fees $17,313 $19,005 $39,974 $37,124
Services 66,952 68,802 132,293 138,129
--------- -------- -------- --------
Total revenues 84,265 87,807 172,267 175,253
Cost of revenues:
Cost of license fees 3,988 3,603 8,079 6,778
Cost of services 33,731 35,899 65,832 73,740
--------- -------- -------- --------
Total cost of revenues 37,719 39,502 73,911 80,518
Gross profit 46,546 48,305 98,356 94,735
Operating expenses:
Research and development 15,257 14,286 30,192 29,590
Sales and marketing 21,498 24,801 44,496 53,316
General and administrative 10,085 9,982 19,310 16,503
Restructuring charges 2,250 5,823 2,210 5,823
Amortization of acquired
intangibles 321 222 566 429
--------- -------- -------- --------
Total operating expenses 49,411 55,114 96,774 105,661
--------- -------- -------- --------
Operating (loss) income (2,865) (6,809) 1,582 (10,926)
Other income (expense):
Interest income 780 1,129 1,662 2,234
Interest expense (20) (33) (38) (77)
--------- -------- -------- --------
Total other income (expense) 760 1,096 1,624 2,157
(Loss) income before income taxes (2,105) (5,713) 3,206 (8,769)
(Benefit) provision for income
taxes (821) (2,228) 1,250 (3,420)
--------- -------- -------- --------
Net (loss) income $(1,284) $(3,485) $1,956 $(5,349)
========= ======== ======== ========
Net (loss) income per share:
Basic $(0.01) $(0.04) $0.02 $(0.05)
========= ======== ======== ========
Diluted $(0.01) $(0.04) $0.02 $(0.05)
========= ======== ======== ========
Shares used in computing net
(loss) income per share:
Basic 98,302 98,453 98,383 97,649
========= ======== ======== ========
Diluted 98,302 98,453 107,253 97,649
========= ======== ======== ========
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP OPERATING RESULTS TO
PRO FORMA NET INCOME (UNAUDITED)
Pro forma results are the internal measures of profitability used by
our management to judge operating performance. Pro forma operating
results and pro forma net income are not determined in accordance with
generally accepted accounting principles (GAAP) and should not be
considered in isolation or as an alternative to or more meaningful
than measures of operating performance determined in accordance with
GAAP. Additionally, Lawson's calculation of pro forma net income or
loss may not be comparable to similarly titled measures of other
companies. Audited financial statements appear in Lawson's Annual
Report on Form 10-K and 10-Q filed with the Securities and Exchange
Commission.
Three Months Ended Six Months Ended
------------------ ------------------
Nov 30, Nov 30, Nov 30, Nov 30,
2003 2002 2003 2002
--------- -------- -------- ---------
GAAP operating (loss) income: $(2,865) $(6,809) $1,582 $(10,926)
Adjustments:
Restructuring charge 2,250 5,823 2,210 5,823
Non-cash stock-based
compensation (75) 299 624 1,701
Lease abandonment expense - 676 - 676
Software and intangible
amortization related to
acquisitions 1,005 602 1,657 1,161
--------- -------- -------- ---------
Pro forma operating income
(loss) 315 591 6,073 (1,565)
Total other income
(expense) 760 1,096 1,624 2,157
--------- -------- -------- ---------
Pro forma income before income
taxes 1,075 1,687 7,697 592
Pro forma provision for
income taxes 419 658 3,001 231
--------- -------- -------- ---------
Pro forma net income $656 $1,029 $4,696 $361
========= ======== ======== =========
Pro forma net income per share:
Basic $0.01 $0.01 $0.05 $0.00
========= ======== ======== =========
Diluted $0.01 $0.01 $0.04 $0.00
========= ======== ======== =========
Shares used in computing pro
forma net income per share:
Basic 98,302 98,453 98,383 97,649
========= ======== ======== =========
Diluted 107,399 102,530 107,253 102,695
========= ======== ======== =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion