NewMoney
17 years ago
Physiotherapy Associates Signs Multi-Suite Contract with Lawson
Lawson applications will help the major outpatient rehabilitation provider support growth by consolidating business systems, enhancing visibility into key data
Last Update: 9:01 AM ET Jul 31, 2007
ST. PAUL, Minn., Jul 31, 2007 (BUSINESS WIRE) -- Lawson Software today announced that Physiotherapy Associates has licensed the Lawson S3 Human Capital Management and Lawson S3 Enterprise Financial Management suites. The Lawson applications will support the rehabilitation provider's growth strategies with standardized accounting processes, improved access to critical financial and human resources data, and greater visibility into key data across its network of care centers. The contract was signed during Lawson's fourth quarter of fiscal 2007, which ended May 31, 2007.
Physiotherapy is one of the nation's leading providers of musculoskeletal outpatient rehabilitation services, operating more than 800 centers in 34 states. Its services include outpatient physical therapy, orthotics and prosthetics, and industrial rehabilitation - a special therapy designed for injured workers or workers seeking to improve their physical capacities in relation to their job demands.
As Physiotherapy Associates grew, it became increasingly difficult to maintain productivity using legacy business applications on disparate systems designed to manage partner relationships and accounts payable processes. Additionally, Physiotherapy's growing network of rehabilitation centers and expanding employee base required more sophisticated workforce management processes, with improved process automation.
"The Lawson system's functionality made it the best fit for our company's needs," said David Valcik, chief information officer for Physiotherapy Associates. "We needed a comprehensive business system that is easy to use yet would help us reduce administrative costs and enhance reporting."
Once implemented, the Lawson system will provide a single user interface. This will enable Physiotherapy employees to quickly access and share key data across departments for improved cash management and budgeting. The Lawson Drill Around(R) feature also will enable users to conduct in-depth analysis of key data via easy access to supporting transactional information. With greater visibility into organization-wide data, companies can better track critical financial and staffing information to enhance decision-making.
The Lawson Human Capital Management suite will also help the organization automate its benefits enrollment process and employee lifecycle activities, such as transfers, promotions and terminations, freeing HR managers to focus on more strategic initiatives.
By replacing disparate systems with a consolidated Lawson system, companies can enhance their reporting capabilities and create a scalable financial system, which is important to supporting specific growth strategies. Physiotherapy expects to complete its Lawson implementation in November 2007.
"Enhancing patient care in an environment of scarce resources means healthcare providers must minimize administration," said Sara Van Kempen, healthcare marketing director, Lawson Software. "As the leading provider of business applications for the healthcare industry, Lawson products and services help organizations like Physiotherapy improve operational efficiency so their employees can focus on achieving their mission."
Lawson serves more than 500 healthcare industry customers representing more than 4,500 facilities, including eight of the top 10 integrated delivery networks. The company also serves managed care systems, academic medical centers, hospitals, clinics, physician group practices, home healthcare, long-term care and other health services enterprises. Lawson solutions help healthcare organizations manage their business so they can focus on their patients, automate and streamline materials management for a better bottom line, and overcome the challenges of the labor shortage.
NewMoney
17 years ago
Lawson Software Reports Fourth Quarter Fiscal 2007 Financial Results
LAWSON SOFTWARE REPORTS FOURTH QUARTER FISCAL 2007 FINANCIAL RESULTS
Lawson Software, Inc. today reported financial results for its fiscal fourth quarter, which ended May 31, 2007. The May quarter also included the one-year anniversary of the company's acquisition of Intentia International AB, which was completed on April 25, 2006.
Lawson reported fiscal 2007 fourth quarter GAAP (generally accepted accounting principles) revenues of $212.9 million, up from revenues of $126.1 million in its fiscal 2006 fourth quarter. Excluded from the 2007 results is $1.1 million of deferred maintenance and services revenue impact of purchase accounting adjustments made to the opening deferred maintenance and services revenue balances acquired from Intentia.
Approximately 75 percent of the year-over-year increase in revenues was due to the consolidation of a full quarter of revenues of the former Intentia compared with five weeks in the same period last year. Higher revenues from the legacy Lawson business accounted for 25 percent of the year-over-year increase, with increases across all revenue streams including consulting, maintenance and software license fees. The year-over-year increase in legacy Lawson license fees, an important financial metric, was driven by significant sales of the Lawson System Foundation 9 technology platform product with approximately 450 deals sold in the quarter. For more information on fourth quarter sales of Lawson System Foundation 9, please refer to the company's press release dated June 13, 2007.
Fourth quarter GAAP net income was $8.1 million, or $0.04 per diluted share, compared with a $4.8 million, or $0.03 per share net loss in the fourth quarter of fiscal 2006 that resulted from the consolidation of the former Intentia's results from the April 25, 2006 acquisition date as well as the costs related to the acquisition. The year-over-year increase in net income was primarily attributed to a $13.3 million improvement in operating margin resulting from a 69 percent increase in revenues combined with a reduction in operating expenses as a percentage of revenues. Included in these GAAP results are pre-tax expenses totaling $8.9 million for amortization of acquired intangible assets, restructuring charges, acquisition related costs, purchase accounting impact on consulting costs, amortization of purchased maintenance contracts, and $2.1 million of non-cash stock-based compensation as a result of adopting FAS 123(R) in the year. Under FAS 123(R), stock-based employee compensation cost is recognized using the fair-value based method for all unvested stock options after June 1, 2006. Excluding these expenses and including the $1.1 million of purchase accounting adjustments to maintenance and services revenues, non-GAAP net income was $14.6 million, or $0.08 per diluted share. A lower non-GAAP effective tax rate of 42 percent compared with a 51 percent forecasted rate favorably impacted the non-GAAP earnings per share by $0.01 compared with the company's preliminary estimates provided on June 13, 2007.
"Our fourth quarter financial results are another indication that our strategy is sound and that our execution continues to improve," said Harry Debes, president and CEO. "Because of the Lawson-Intentia combination in April 2006, fiscal 2007 was a year of significant transition in our company. During the last 12 months we have organically grown revenue in total and improved bottom line performance in every quarter. We have created and delivered a comprehensive product strategy, built an energized team of leaders, sales account executives and employees around the world, built a 500-person facility in Manila and strengthened and streamlined global operations. I am proud of our progress in 2007, and on this solid foundation, I am confident about what we can achieve in the future."
Results for the 12-month Fiscal Period
For the fiscal year ended May 31, 2007, Lawson reported total GAAP revenues of $750.4 million, compared with total revenues of $390.8 million in the fiscal 2006 year. Excluded from the 2007 results is $11.4 million of deferred maintenance and services revenue impact of purchase accounting adjustments made to the opening deferred maintenance and services revenue balances acquired from Intentia. The consolidation of the former Intentia business resulted in a 79 percent increase in revenues. Organic growth in maintenance and consulting revenues from the legacy Lawson business accounted for the remainder of the year-over-year increase. Legacy Lawson software license fees decreased slightly by 3 percent on a full year basis, primarily attributable to lower revenue recognition rates based on specific contract terms and conditions.
The company reported a GAAP net loss of $20.9 million, or $0.11 per share for fiscal 2007, compared with net income of $16.0 million, or $0.14 per diluted share for fiscal 2006. The decrease in net income was primarily attributed to higher restructuring expenses and amortization of acquired intangibles following the acquisition as well as lower gross margin largely due to added 3rd party license costs in the Lawson System Foundation product and a higher mix of lower-margin consulting revenues. Included in the 12-month GAAP results are pre-tax expenses totaling $55.9 million for amortization of acquired intangible assets, restructuring charges, acquisition related costs, purchase accounting impact on consulting costs, amortization of purchased maintenance contracts, and $7.7 million of non-cash stock-based compensation as a result of adopting FAS 123(R) in the year. Excluding these costs and including the $11.4 million of maintenance and services revenue impacted by purchase accounting, 12-month non-GAAP net income was $36.1 million, or $0.19 per diluted share.
Financial Guidance
For the first fiscal quarter 2008 ending Aug. 31, 2007, the company estimates total revenues of $183 million to $188 million. License revenues are anticipated to be between $24 million and $27 million. Maintenance revenues are estimated to be between $78 million and $79 million, and consulting revenues are estimated to be between $80 million and $82 million. The company anticipates GAAP fully diluted earnings per share to be in the range of $0.01 to $0.03. Non-GAAP fully diluted earnings per share are forecasted between $0.04 and $0.06, excluding approximately $10 million of pre-tax expenses related to the amortization of acquisition-related intangibles, amortization of purchased maintenance contracts and stock-based compensation charges.
For the fiscal year 2008 ending May 31, 2008, the company estimates total revenues of $820 million to $830 million. The company anticipates GAAP full diluted earnings per share results to be in the range of $0.17 to $0.22. Non-GAAP fully diluted earnings per share are forecasted to be between $0.30 and $0.34, excluding approximately $37 million of pre-tax expenses related to the amortization of acquisition-related intangibles, amortization of purchased maintenance contracts and stock-based compensation charges. The non-GAAP effective tax rate for fiscal 2008 is anticipated to be between 42 and 45 percent. The anticipated full year GAAP and Non-GAAP EPS results include approximately $15 million of pre-tax operating expenses associated with various transformational initiatives, impacting expected results by $0.03 to $0.04 per share. In addition, the company expects to incur capital expenditures of $25 million to $30 million for infrastructure and facility projects, which is $15 million higher than historical expenditures. Cash flow from operations is anticipated to be between $75 million and $95 million. Cash flow from operations is negatively impacted by the increased $15 million of pre-tax operating expenses.
Fourth Quarter Fiscal 2007 Key Metrics and Highlights
-- Cash, cash equivalents and marketable securities at year-end were $553.8 million (excluding $7.4 million of restricted cash).
-- Total deferred revenues increased 45 percent from the third quarter to $263.4 million driven primarily by annual maintenance renewals.
-- Deferred license revenues increased 8 percent from the third quarter to $35.3 million.
-- 751 total deals were signed at an average selling price of $57,000 compared with 354 deals at an average selling price of $88,000 in the third quarter.
-- 40 new customer deals were signed at an average selling price of $228,000 compared with 24 at an average selling price of $373,000 in the third quarter.
-- Two deals greater than $1 million and seven deals between $500,000 and $1 million were signed, compared to five deals greater than $1 million and four deals in the $500,000 to $1 million range in the third quarter.
-- The Americas region represented 54 percent of total revenue; the Europe, Middle East, and Africa region represented approximately 43 percent of total revenue; and Asia-Pacific represented 3 percent of total revenue.
-- Non-GAAP consulting services margins declined sequentially to 11.1 percent due primarily to higher 3rd party costs and fourth quarter utilization incentives.
-- Customer wins: Americas -American Safety Insurance; Elsinore Valley Municipal Water District; Physiotherapy Associates; SUNY Downstate Medical Center; EMEA - Cardo AB; Metso Automation Oy; Rivadis Laboratories; SUNEOR; W D Irwin & Sons Ltd; Asia-Pacific -Rip Curl and Casella Wines.
-- The company signed five new Lawson M3 deals with customers in the Americas.
-- Lawson saw good customer adoption of Lawson System Foundation 9 with approximately 450 customers purchasing in the fourth quarter an increase from 135 customers in the third quarter of fiscal 2007.
-- The company repurchased 5.5 million shares of common stock in the fourth quarter for $49 million at an average price of $8.89 per share. In fiscal 2007, the company repurchased 6.4 million shares, or approximately 3 percent of total shares outstanding, for $54.9 million at an average price of $8.61 per share.