Lawson Software Inc. yesterday reported solid financial results in its recently concluded fiscal fourth quarter, although the company said sales for its M3 ERP application suite were disappointing, prompting the enterprise applications vendor to cut headcount in that business.
Also on Thursday, Lawson President and CEO Harry Debes said company officials had met with activist investor Carl Icahn, who recently bought 9.7% of Lawson’s public stock. Debes called the meeting “cordial and constructive,” adding, “Nothing has changed in our business plan or our day-to-day operations.”
Sometimes called a corporate raider, Icahn is known to invest in companies he considers poorly managed and then demand that the company be restructured or sold.
In the fourth quarter ended May 31, Lawson reported total revenue of $197 million, up 6% from $186.2 million in the fourth quarter of 2009. Fourth-quarter software license revenue grew 13% to $38 million, while maintenance revenue was up 10% to $93.3 million. Lawson saw fourth-quarter consulting revenue fall by 3% to $65.6 million.