- GAAP software revenues increase 9 percent year-over-year; non-GAAP software revenues increase 7 percent
- GAAP operating income rises 92 percent year-over-year; non-GAAP operating income rises 24 percent
- GAAP EPS of $0.13 up from $0.01 last year; non-GAAP EPS of $0.14 up 32 percent
HRchitect includes Lawson in our list of top HRIS vendors that businesses should consider. If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 14 years, HRchitect has unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is always available to help!
Lawson Software, Inc. (Nasdaq: LWSN) today reported financial results for its third quarter of fiscal year 2011, which ended Feb. 28, 2011. As reported under generally accepted accounting principles (GAAP) revenues were $196 million with operating income of $22.3 million and net income of $21.4 million, or diluted earnings per share (EPS) of $0.13. These results increased compared to third quarter of fiscal year 2010 revenues of $186 million with operating income of $11.6 million and net income of $1.7 million, or EPS of $0.01.
GAAP operating income for the quarter rose 92 percent to $22.3 million resulting primarily from a $12.8 million increase in gross profit. The increase in gross profit was largely driven by a 9 percent increase in software revenues. Net income increased to $21.4 million compared to $1.7 million in fiscal 2010 due, in part, to the improvements in operating income but also due to a gain of $3 million from the settlement of a bankruptcy claim against Lehman Brothers OTC Derivatives Inc. (Lehman OTC) and a gain of $1.2 million related to the sale of marketable securities in the quarter. Net income was also favorably impacted by a $4.7 million decrease in the provision for income taxes.
Non-GAAP results also increased compared to last year. Total non-GAAP revenues for the third quarter of fiscal 2011 were $197.9 million with operating income of $36.9 million and net income of $23.9 million, or EPS of $0.14. These results increased compared to non-GAAP revenues of $188.6 million, operating income of $29.9 million and net income of $17.8 million, or EPS of $0.11 in the third quarter of fiscal year 2010. Third quarter of fiscal 2011 non-GAAP results include $1.9 million of revenues impacted by purchase accounting adjustments and exclude $12.7 million of pre-tax expenses for amortization of acquired intangibles, non-cash share-based compensation, amortization of purchased maintenance contracts, integration expenses and a pension gain adjustment, partly offset by a restructuring adjustment. Non-GAAP net income and EPS also exclude $2.3 million of pre-tax expense for non-cash convertible notes interest and $3 million of pre-tax income resulting from the settlement of a bankruptcy claim against Lehman OTC. Non-GAAP net income and EPS include a provision for income taxes based upon a rate of 35 percent in fiscal 2011, which is applied consistently throughout the year.
“Lawson delivered a strong third quarter and we are pleased with our continued progress across both business segments during the period,” said Harry Debes, president and chief executive officer. “The total value of software license contracts signed in the quarter grew by 27 percent, led by robust sales in our Healthcare vertical. Non-GAAP operating margin of nearly 19 percent improved year-over-year, driven by increases in both S3 and M3 segment profitability. We completed the annual maintenance renewal cycle for our international customers and renewals rose to an estimated 94 percent. All of these items contributed to a 68 percent increase in cash from operations to $73 million in the quarter.”