Lawson Software-IPO and Several Acquisitions After
P.J. Jakovljevic & Lou Talarico - November 6, 2003

Event Summary

Lawson Software has always been unique in many aspects within the enterprise applications market and has consequently had a smooth ride for more than two decades since its inception. The vendor has continued with the same differentiating tune, albeit somewhat amended as to stifle unavoidable external disturbances during the last two years. One of these disturbances would be the losing fiscal 2003 year with crippling revenues (a 20 percent decline in total revenues and nearly halved license revenues compared to fiscal 2002), after twenty-six years of seemingly unstoppable growth, positive cash flow and arguable profitability (if one is to exclude the $30 million charge for accretion on and conversion of preferable stock in fiscal 2002, and a similar adjustment for fiscal 2000, see Figure 1)...