ST. PAUL, Minn., Nov. 21, 2006–Fort Bend County, Texas, signed a multi-suite contract with Lawson Software (Nasdaq: LWSN) in Lawson’s first quarter of fiscal 2007, which ended Aug. 31, 2006. The county licensed the Lawson Enterprise Financial Management, Human Capital Management, Supply Chain Management and Business Intelligence suites to help improve service levels and reduce operational costs through business process automation.
Fort Bend County, located southeast of Houston, has 1,700 employees and more than 450,000 residents. Key cities within the county include Sugar Land, Missouri City, Stafford, Rosenberg and a portion of the city of Houston.
The Lawson applications will replace the county’s aging financial, procurement, human resources, budgeting and payroll systems. Lawson Professional Services will provide implementation services for the project rollout.
“Lawson’s ERP suites surpassed the functionality of our existing applications and offered the flexibility and scalability to accommodate our current and future needs,” said Ed Sturdivant, county auditor, Fort Bend County. “The unified Lawson system will help us minimize administrative costs so we can focus taxpayer dollars on enhancing constituent service.”
Specifically, Fort Bend County will use the Lawson applications to help reduce its average accounts payable cycle from 30 to 15 days. This shorter cycle will allow the county’s Purchasing department to negotiate vendor discounts of at least one percent of eligible purchases. With vendor payments of eligible purchases in 2005 totaling at least $73 million, discounts would have been $730,000 per year with an expected discount of $2.55 million over five years.
Moreover, the Lawson system provides enhanced reporting and querying capabilities, which will help the county treasurer and auditor manage cash from many funds in pooled investments. The manual processes associated with Fort Bend County’s legacy business system limited its ability to accurately account for the investment of pooled funds. This resulted in a short-term cash position averaging $70 million. Using Lawson, the county will be able to reduce its short-term cash position to $20 million, invest the additional $50 million and earn an additional one percent over short-term rates. This would increase the county’s investment income by approximately $1.75 million over the first five years, with projected annual savings of approximately $500,000 once the system is fully in place.
“Evolving regulatory requirements and constituent demands for greater accountability pose significant challenges for local governments with tight budgets,” said Ken Munson, marketing director, Government & Education, Lawson Software. “Lawson helps government organizations simplify administration, mitigate risk and meet their imperatives for greater efficiency and accountability.”
Lawson serves more than 120 public services customers, including three of the top seven digital state governments and four of the 25 largest school districts in the United States. State governments, cities, counties, school districts, publicly owned utilities/authorities and special districts rely on Lawson’s solutions to help meet the needs of a variety of stakeholders–constituents, employees, students, vendors and the community–while helping to maximize limited budgets.
About Lawson Software
Lawson Software provides software and service solutions to 4,000 customers in manufacturing, distribution, maintenance 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 Lawson’s ability to realize synergies and revenue opportunities anticipated from the Intentia International acquisition; uncertainties in the software industry; uncertainties as to when and whether the conditions for the recognition of deferred revenue will be satisfied; global military conflicts; terrorist attacks; pandemics, and any future events in response to these developments; changes in conditions in the company’s targeted industries; increased competition and other risk factors listed in the company’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Lawson assumes no obligation to update any forward-looking information contained in this press release.