An $11.5m charge related to layoffs and higher marketing expenses swung business applications software maker Lawson Software to a third quarter loss.
The St Paul, Minnesota-based firm said that its losses for the quarter totaled $9.8m (5 cents EPS) which reverses a net profit of $10m (9 cents EPS) in the same quarter a year ago.
Revenue for the quarter however spiked to $191.2m, from $87.7m in the same quarter. That beat analyst expectations of $188.2m. The 118% increase in revenue is mainly due to Lawson’s acquisition of Intentia International in April 2006.
Lawson pointed to a hefty restructuring charge related to recent layoffs in the US and Europe to cover severance pay and other benefits. The company plans to cut around 350 jobs over the next five quarters as it shifts some of its work operations from the US and Europe to the Philippines.
Lawson also said that sales and marketing costs more than doubled in the quarter to $39.7m as did general administrative expenses, to $25.7m.
The company also warned that it would report a small loss or small profit in the fourth quarter of between 2 to 3 cents EPS against a revenue range of $187m to $195m.
Analysts were expecting EPS of 4 cents on revenue of $193.4m.
Lawson’s stock fell 9 cents at the close at $8.90, and shed a further 4.5% in aftermarket trading.