Lawson shares fall as software maker gives forecast, announces $160 million acquisition
By APFriday, January 8, 2010
Lawson shares fall on weak forecast, acquisition
NEW YORK — Shares of Lawson Software Inc. dropped Friday after the company offered a financial outlook that disappointed investors and said it would spend $160 million to acquire Healthvision Solutions Inc.
The stock fell 60 cents, or 8.6 percent, to $6.39 in morning trading. Shares have traded from $3.40 to $7.51 over the past year.
Lawson said late Thursday that it expects adjusted earnings of 7 cents to 9 cents per share on revenue of $174 million to $178 million for the quarter ending in February.
On average, analysts were looking for 10 cents per share and sales of $175 million.
The planned acquisition of Healthvision, an Irving, Texas, company that makes software for health care providers, drew mixed reviews.
Deutsche Bank’s Tom Ernst, who reiterated a “Buy” rating on Lawson shares in a client note Thursday, said the deal will help the company improve profit margins and add new licensing contracts.
But Peter Goldmacher, an analyst at Cowen & Co., panned the move, saying the “acquisition will be an operational distraction.” He cut Lawson to “Neutral” from “Outperform” in a note to investors.
