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Business

Lawson Software expects to post quarterly loss

Tight-fisted customers put the squeeze on software maker's earnings, company says.
Written by ZDNET Editors, Contributor on
SAN FRANCISCO--Lawson Software, a midsize business software maker, on Wednesday said it expects to post a first-quarter net loss of 1 cent to 2 cents because customers tightened spending budgets and deferred contract decisions.

Lawson shares fell about 8 percent after hours to $5.63 after closing at $6.13 on the Nasdaq.

The St. Paul, Minn., company said in a statement that it expects to report total first-quarter revenue of about $82 million, which includes license revenues of about $13 million. Lawson is scheduled to release first-quarter results on Sept. 30.

Analysts polled by Reuters were expecting the company to report revenue of $92.3 million and earnings per share, excluding items, of 3 cents.

On that basis, Lawson said, it expects to break even or post earnings per share of 1 cent. These earnings include an adjustment for about $2 million of items consisting of factors such as non-cash stock-based compensation, the company said.

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