Lawson Software Reaffirms Prior Guidance for Revenue and Non-GAAP EPS Results for the Fourth Quarter of Fiscal 2010 and Updates GAAP EPS Guidance for Planned Restructuring Charge ST. PAUL, Minn.--(BUSINESS WIRE (http://www.businesswire.com/))-- Regulatory News: Lawson Software, Inc. (Nasdaq:LWSN) today reaffirmed its prior guidance for total revenues and non-GAAP EPS provided on April 7, 2010 for its fourth fiscal quarter, ending May 31, 2010 and updated GAAP EPS guidance for a planned restructuring charge. For the fourth quarter of fiscal 2010, Lawson estimates total revenues in the range of $194 million to $198 million. Non-GAAP total revenues are expected to be in the range of $196 million to $200 million, including approximately $2 million of revenues impacted by purchase accounting adjustments. Non-GAAP EPS is forecasted to be in the range of $0.10 to $0.12, excluding approximately $10 million of pre-tax adjustments for amortization expense, non-cash stock-based compensation expense, non-cash interest expense and a one-time gain related to the modification of a defined benefit pension plan and also excluding the impact of the restructuring charge discussed below. The non-GAAP effective tax rate for the fourth quarter is estimated at 37 percent. Guidance for the fourth fiscal quarter is updated to include an estimated impact of foreign exchange rates through May 16. Lawson anticipates taking a pre-tax restructuring charge in the range of $5 to $7 million relating to a plan to restructure its workforce primarily in the company's M3 operations in Europe, the United States and Manila. The majority of the restructuring charge is anticipated to be recorded in the fiscal fourth quarter, which will impact GAAP EPS. The company anticipates recording the remaining charges in the first quarter of its fiscal year 2011 in the period ending Aug. 31, 2010. As part of the Company's strategic planning and fiscal year 2011 budgeting process during its fourth quarter, management determined the need to consolidate and reduce positions in its M3 operations overall. This action and the timing of this action have been planned since early May and is not a reaction to any recent shareholder events. The exact number of positions in each country to be impacted has not been fully identified at this time, preventing Lawson from calculating the tax effect and EPS impact of the restructuring. However, Lawson expects the workforce reduction will impact 150 to 200 positions, or less than 5 percent of the company's employees. Lawson also plans to continue to invest in its strategic S3 and M3 growth verticals and expects planned personnel increases in these areas to approximately offset the workforce reduction by May 31, 2011. About Lawson Software Lawson Software provides software and service solutions to 4,500 customers in equipment service management and rental, fashion, food & beverage, healthcare, manufacturing & distribution, public sector (United States), service industries, and strategic human capital management across 40 countries. Lawson Software is a global provider of enterprise software, services and support to customers primarily in three sectors: services, trade and manufacturing/distribution. Lawson's solutions include Enterprise Performance Management, Human Capital Management, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning, Enterprise Asset Management and industry-tailored applications. Lawson solutions assist customers in simplifying their businesses or organizations by helping them streamline processes, reduce costs and enhance business or operational performance. Lawson is headquartered in St. Paul, Minn., and has offices around the world. Visit Lawson online at www.lawson.com (http://cts.businesswire.com/ct/CT?id=smartlink&url=http% 3A%2F%2Fwww.lawson.com&esheet=6308602&lan=en_US&anchor=www.lawson.com&in dex=1&md5=6476c6bec21e8f0173bef0d5adccab19). For Lawson's listing on the Third North exchange in Sweden, Remium AB is acting as the Certified Adviser. Forward-Looking Statements This press release contains forward-looking statements about Lawson's expectations for the fourth quarter of fiscal 2010 which are inherently uncertain, including statement describing Lawson's anticipated revenues, non-GAAP EPS, and GAAP EPS for the fourth quarter of fiscal 2010 and the estimated amount of the restructuring charge and annualized cost savings. As with other software companies, a substantial portion of Lawson's sales occur in the final weeks of the fiscal quarter, making any statement regarding expectations for the quarter subject to a high level of uncertainty and risk. These forward-looking statements contain statements of intent, belief or current expectations of Lawson Software and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company is not obligated to update forward-looking statements based on circumstances or events that occur in the future. Risks and uncertainties that may cause such differences include but are not limited to: adverse market or economic events that may cause customers and prospects to delay or cancel plans to purchase our products or services in the quarter; actions of competitors that may alter anticipated sales to potential customers; adverse business developments at our potential customers that defer or eliminate their ability to purchase our products and services; uncertainties regarding the ability of the company to accomplish the restructuring within the anticipated costs and to achieve the anticipated annual cost savings due to the restructuring; general uncertainties in software demand; uncertainties as to when and whether the conditions for the recognition of revenue on new license agreements in the quarter and deferred revenue will be satisfied; increased competition; general economic conditions; the potential adverse impact of foreign currency exchange rate fluctuations; continuation of the global economic weakness, particularly in Europe; continuation of restricted credit availability and potential adverse developments in the sovereign debt market; the outcome of pending and threatened litigation; global military conflicts; terrorist attacks; pandemics, and any future events in response to these developments; changes in conditions in the company's targeted industries and other risk factors listed in the company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission. Lawson assumes no obligation to update any forward-looking information contained in this press release. Lawson Software Media: Joe Thornton, +1-651-767-6154 joe.thornton@us.lawson.com (joe.thornton@us.lawson.com) or Investors and Analysts: Barbara Doyle, +1-651-767-4385 investor@lawson.com (investor@lawson.com)
Lawson Software Reaffirms Prior Guidance for Revenue and Non-GAAP EPS Results for the Fourth Quarter of Fiscal 2010 and Updates GAAP EPS Guidance for
| Source: Lawson Software, Inc.