Revenue rose 107% year on year from $89m to $184.5m but the improvement was largely due to the consolidation of revenue from the Intentia operation. The figure excludes $3.9m of deferred maintenance and service revenue that was written down under the purchase accounting method used for the acquisition. Total license contracting was $30.2m, a 20% sequential quarter increase.
The loss for the quarter was $3.5m or $0.02 per share compared to net income of $6.6m, or $0.06 per share in the same period last year. Analysts had expected per share income of $0.04 per share.
Lawson is still paying the cost of the acquisition, and it attributed most of the loss to the effects of consolidation of Intentia’s costs and operating expenses, plus an increase in the quarterly effective tax rate, and pre-tax expenses totaling $10.4m for amortization of acquired intangible assets, restructuring charges, amortization of purchased maintenance contracts, and integration related costs. The figure was also impacted by $1.6m of non-cash stock-based compensation.
Although Lawson CEO Harry Debes said the company had made good progress in bringing the two entities together, including increased cross selling, he admitted that license revenue is not where it should be. As a result Lawson has lowered its guidance for the second half of the financial year.
For the third quarter it expects revenue of $181m to $189m, excluding $2m of deferred maintenance and services revenue. License contracting is anticipated at between $32m and $38m, with estimated recognized license revenues between $20m and $25m.
