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LAWSON REVS UP; NET DOWN

Although Lawson Software's results fell for the year ended May 31, the software vendor ended fiscal 2010 with improved results for the fourth quarter. That period saw the company produce revenue of $197 million, up 6 percent from $186.2 million for the same period a year earlier. And organic revenue was up 8 percent for the compared periods. Earnings were cut by a $5.6 million increase in the income tax provision, that stemmed from a variety of reasons.

For the year, the company reported revenue of $736.4 million, down from $757.3 million. Net income was $13 million, down from $14.2 million. Lawson may or may not be a good barometer for the midmarket, but since its quarter ends before the rush of earnings announcements for the June quarter, I believe the company's performance offers some in sight into what we are going to see when other publicly held vendors, Deltek, Blackbaud and Epicor, report. Since June is the end of the Microsoft year, it might take a few more days for that company to offer its assessment via reports on the percent change in Dynamics revenue. However, Microsoft is usually much quicker in reporting years than the 90 days allowed by the SEC.

 

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