Posted by: Mark Fontecchio
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Lawson Software, a midrange ERP software company and a longtime System i vendor, showed some mixed results when announcing its most recent quarterly results.
Total revenues for the St. Paul, Minn.-based company were down 11% from the same quarter last year, but this is no surprise. Just about every vendor, software and hardware, have been seeing decreased revenue this year.
What is perhaps telling is that revenue from software licensing fees for Lawson is up 23% from last year. The company says in its release that the increase was “driven primarily by increases in healthcare, public sector and equipment service management & rental vertical markets. Contributing to the increase was the recognition of a larger amount of deferred license fees in the first quarter of fiscal 2010 as compared to the similar period last year as well as several significant deals signed and recognized in the current quarter.”
In general, overall software revenues were up 1%, according to the company. What took a hit was consulting revenue, which dropped 29% “driven by fewer billable consultants. The company has reduced the size of its consulting staff as part of a strategy to move more implementation services to its partner channel as well as due to lower bookings for consulting and implementation services.”
“We delivered strong software revenue and excellent earnings growth despite continued weakness in the global economy,” Harry Debes, Lawson president and chief executive officer, said in the statement. “Our vertical strategy is yielding growth in software revenues and our continued focus on internal efficiencies has significantly improved operating margin.”