By Saqib Iqbal Ahmed
BANGALORE, Sept 30 (Reuters) - Business software maker Lawson Software Inc posted a first-quarter profit that beat market expectations, helped by an increase in license fee revenue, and forecast second-quarter results in line with Wall Street view.
For the second quarter, the company forecast earnings, excluding special items, of 7 cents to 9 cents a share on revenue of $175 million to $180 million.
Analysts on average expect earnings of 9 cents a share on revenue of $176 million, according to Reuters Estimates.
The company also said it will cut about 75 jobs, primarily in its consulting services in Europe.
'It was a result of our moving to our vertical structure, we have more visiblity in the business and we were able to identify pockets of the business that were not as efficient as we had hoped they would be,' Chief Financial Officer Robert Schriesheim told Reuters by phone.
First-quarter net income was $6 million, or 4 cents a share, compared with a loss of $3.7 million, or 2 cents a share, a year ago, the company said.
Revenue for the quarter was $169 million. License fee revenue rose about 23 percent to $25.9 million.
Excluding special items, the company earned 9 cents a share.
Analysts on average were expecting earnings of 5 cents a share, on revenue of $161.8 million.
Shares of Lawson Software, which have gained more than 50 percent in the last six months, were at $6.79, up about 9 percent after the bell. They had closed at $6.24 Wednesday on Nasdaq.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel) Keywords: LAWSONSOFTWARE/ (saqib.ahmed@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging saqib.ahmed.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BANGALORE, Sept 30 (Reuters) - Business software maker Lawson Software Inc posted a first-quarter profit that beat market expectations, helped by an increase in license fee revenue, and forecast second-quarter results in line with Wall Street view.
For the second quarter, the company forecast earnings, excluding special items, of 7 cents to 9 cents a share on revenue of $175 million to $180 million.
Analysts on average expect earnings of 9 cents a share on revenue of $176 million, according to Reuters Estimates.
The company also said it will cut about 75 jobs, primarily in its consulting services in Europe.
'It was a result of our moving to our vertical structure, we have more visiblity in the business and we were able to identify pockets of the business that were not as efficient as we had hoped they would be,' Chief Financial Officer Robert Schriesheim told Reuters by phone.
First-quarter net income was $6 million, or 4 cents a share, compared with a loss of $3.7 million, or 2 cents a share, a year ago, the company said.
Revenue for the quarter was $169 million. License fee revenue rose about 23 percent to $25.9 million.
Excluding special items, the company earned 9 cents a share.
Analysts on average were expecting earnings of 5 cents a share, on revenue of $161.8 million.
Shares of Lawson Software, which have gained more than 50 percent in the last six months, were at $6.79, up about 9 percent after the bell. They had closed at $6.24 Wednesday on Nasdaq.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel) Keywords: LAWSONSOFTWARE/ (saqib.ahmed@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging saqib.ahmed.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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