Company announces second quarter fiscal 2009 results conference call will be held Jan. 8, 2009
ST. PAUL, Minn., Nov 18, 2008 (BUSINESS WIRE) -- Lawson Software (Nasdaq: LWSN) today announced it is implementing cost
reduction measures in light of current economic conditions. The company
will restructure its workforce, close one office facility and reduce
discretionary expenses while preserving targeted investments that enable
long-term growth and increased efficiencies. The restructuring plan
includes the elimination of approximately 200 employees, or 5 percent of
the global workforce, with personnel departures expected to be
substantially completed by Dec. 31, 2008. When combined with anticipated
voluntary attrition and limited hiring, the total reduction in the
global workforce is estimated to be between 8 percent and 10 percent by
the end of the company's fiscal year on May 31, 2009. Annualized cost
savings from the restructuring, attrition, limited hiring and other
expense controls combined are estimated to be in the range of $40
million to $50 million.
The restructuring actions are expected to result in pre-tax charges of
approximately $9 million to $12 million for severance pay and related
benefits and expenses for the facility closure. The majority of the
charges will be recorded in the second fiscal quarter which ends Nov.
30, 2008. The Company anticipates recording the remaining charges in the
third and fourth quarters of its fiscal year ending May 31, 2009.
"Making decisions to reduce personnel are difficult because of the
impact to good people and their families, but these actions are
necessary in this challenging economic environment," said Harry Debes,
Lawson president and chief executive officer. "Lawson is a financially
strong company with a robust balance sheet and a healthy net cash
position. While we are reducing our overall costs, we will continue to
maintain high levels of customer support and product innovation. We will
also continue to make targeted investments in our IT systems and
infrastructure and other selected initiatives that keep our long-term
Second Quarter Fiscal 2009 Conference
Lawson also announced the conference call information for its fiscal
2009 second quarter financial results report. The company will host a
webcast and conference call to discuss its second quarter results and
future outlook on Jan. 8, 2009 at 4:30 p.m. Eastern Time (3:30 p.m.
Central Time). No preliminary estimates of the company's quarterly
results are available at this time.
Interested parties may listen to this event by dialing 1-888-790-3441
(or 1-312-470-0136 for international callers) and using the passcode
"LWSN." A live webcast will also be available online at www.lawson.com/investor.
Interested parties should access the conference call or webcast
approximately 10-15 minutes before the scheduled start time.
A replay will be available approximately one hour after the conference
call concludes and will remain available for one week. The toll-free
U.S. replay number is 1-800-756-6160, and the international replay
number is 1-203-369-3595. The webcast will remain on www.lawson.com/investor
for approximately one week.
About Lawson Software
Lawson Software provides software and service solutions to 4,500
customers in manufacturing, distribution, maintenance, healthcare and
service sector industries across 40 countries. Lawson's solutions
include Enterprise Performance 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.
This press release contains forward-looking statements that contain
risks and uncertainties. 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: uncertainties in
uncertainties in the software industry; uncertainties as to when and
whether the conditions for the recognition of deferred revenue will be
satisfied; increased competition; general economic conditions;
continuation of the global credit crisis; 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 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.
SOURCE: Lawson Software
Joe Thornton, 651-767-6154
Investors and Analysts:
Barbara Doyle, +1-651-767-4385