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Shares of Lawson Software, Inc. (LWSN) hit a 52-week high on heavy volume today after the Company announced its financial results on Wednesday for the first quarter ended August 31, 2009.
Total revenues of $169 million were down 11% when compared to the first quarter of fiscal 2009. Non-GAAP net income for the first quarter of fiscal 2010 was $15.4 million, or $0.09 per diluted share, increasing from $8.7 million, or $0.05 in the first quarter of fiscal 2009. This beat analysts' estimates for non-GAAP net income of $0.05 per share.
Harry Debes, President and CEO of Lawson, commented in a conference call, "This was the third consecutive quarter of non-GAAP margins of 50% or better, and we nearly doubled our EPS performance from last year. Our Q1 results exceeded the high-end of our guidance. These results were driven by a better-than-expected 28% increase in licensing revenues and expenses that were below budget."
He continued, "Our vertical strategy is now becoming evident in our numbers, and we are excited about the opportunities for continued growth. We are showing that we can deliver very solid results in a global economy that remains soft."
For the second quarter of fiscal 2010, the Company estimates total revenues of $175 million to $180 million, and non-GAAP fully diluted earnings per share are forecasted to be $0.07 to $0.09.
Robert Schriesheim, CFO of Lawson, added, "Our first half financial performance will exceed our expectations and analysts forecasts. We are very confident about our market position, and we are sanguine about our growth potential and operating leverage as the economy recovers."
Mr. Debes concluded, "Economic indicators in the U.S. and Europe are beginning to improve, but the recovery is likely to be choppy. We still expect it to be calendar 2010 before we see broad improvement in business spending. When that happens, we will be well positioned to outperform in our markets."
Davenport upgraded LWSN today to Buy from Neutral following the Q1 report. The firms also raised its price target to $8.35 from $6.50.
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