Menu
Lawson CEO mostly mum on Icahn talks

Lawson CEO mostly mum on Icahn talks

Debes: Meeting with billionaire activist investor was "cordial"

There's still no public word of what may come of billionaire investor Carl Icahn's stake in ERP (enterprise resource planning) vendor Lawson Software.

Lawson has "met with Mr. Icahn and other representatives of his firms, and the interaction was cordial and constructive," CEO Harry Debes said during a conference call announcing the vendor's fourth-quarter results on Thursday.

However, "nothing has changed in our business plan or our day-to-day operations. It is business as usual for us," Debes said. Lawson cannot comment further, he added.

Icahn is known as an "activist investor," with a track record of aggressively seeking a say in how companies operate. He also advocates for decisions he believes would boost returns for shareholders, including selling the company in question. In a filing disclosing his stake in Lawson, Icahn said its shares were undervalued and expressed desire for a meeting with its executives to discuss how to maximize shareholder value.

Lawson is one of the software industry's largest ERP vendors after Oracle, SAP, Microsoft and Infor.

Some analysts expect Icahn, who could not immediately be reached for comment Friday, will indeed push for a sale, lobbying other shareholders behind the scenes to set a plan in motion. He could gain some leverage from Lawson's mixed earnings report Thursday.

In its fourth quarter, ending May 31, the company saw revenue rise 6 percent from the same period last year, to US$197 million. But net income dropped to $2.6 million from $8.6 million in the same quarter last year, due to increased costs related to taxes and its recent acquisition of Healthvision.

For the full year, Lawson posted $736.4 million in revenue, down from $757.3 million the year prior.

The company also provided first quarter fiscal 2011 guidance that fell below Wall Street estimates.

But there are early positive signs for Lawson's recent entry into cloud-based software deployments via its partnership with Amazon Web Services, according to Debes.

Lawson has about 20 solid early prospects, including with large companies, and expects to sign deals "in the next quarter or two," he said during the conference call. Some 85 percent of these opportunities are with new customers, he added.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags enterprise resource planningbusiness issuessoftwareapplicationsfinancial resultsMergers / acquisitionsSEC FilingsLawson Software

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments