Lawson Software has announced third-quarter preliminary results that beat its own estimates and those of analysts, and were enough to overcome any fallout from its announcement that it needed a few extra days to finalize its results for the quarter.
It was scheduled to report its results on April 4, but will now report on April 9, concurrently with the date it expects to file its 10-Q. The delay was due to the finalization and review of purchase accounting adjustments related to the acquisition of Intentia International, which was completed almost a year ago exactly.
The company said it expects revenue in the range $190m to $192m, excluding $1.8m worth of deferred maintenance and service revenue due to the purchase account adjustments. Software licenses are expected to come in at between $25m and $27m. Financial analysts expected revenue of around $187m.
Since the acquisition revenue has remained roughly constant, which is a long way from Lawson’s expectations of one plus one equals three, although a year is still early days in terms of reaping financial benefits from a transaction that saw two similarly sized vendors come together without the intention of improving profits by cost cutting.
Travis White, senior vice president of global marketing said the company was pleased that it had been able to maintain revenue levels over the year and had avoided the common post-acquisition problem of falling revenue as it proved that the company had not lost focus and was still able to execute. He said it is investing in the development of its two product lines, building up support and service with a global support operation and ensuring minimal post-acquisition customer disruption. Given the prelim results, its initial actions in the field appear to have reassured existing and potential customers although it is still proving itself to the market.