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LAWSON 3Q: BRIGHT SIGN FOR OTHERS?

If results for Lawson Software, which competes on the high-end of this market, reflect the market for the financial software, then things ought to be even brighter when the rest of the ERP vendors start reporting their March quarters. Lawson reported a 71-percent decrease in net income on a 7 percent rise in revenue for the third quarter ended February 28. Net income fell to $1.8 million for the period ended March 31, compared to $6.2 million a year earlier.
Revenue rose to $186.2 million, up from $173.8 million. A particularly good sign was license revenue of $31.9 million, up 28 percent from $24.9 million a year ago. In a Webcast on Wednesday, CEO Harry Debes called it a good performance. While results weren't back to levels two years ago, "More customers are moving forwards on software investment," he said and Debes called the quarter one which was good on almost every front. Also relevant is that in the last week of March, the company announced that next month it would offer its core Lawson Enterprise Management Systems and Lawson Talent Management suite via the Amazon Elastic Compute Cloud infrastructure. The products are part of the new Lawson Cloud Services portfolio. Debes put an interesting spin on this saying it was "beyond SaaS" in that the company wasn't offering the same vanilla applications to all customers via the Internet.
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