Danderyd, Sweden-based Intentia International AB continue to struggle with a loss of SEK 47.4m ($21.3m) in its fourth quarter to December 31, up from a loss of SEK 5.7m (0.8m) on revenue 21.7% lower at SEK 796.1m ($107.4m). This completed a dismal year for the company when it had to cut its workforce by 320 to 2,999 as it ran up a loss of SEK 411.1m (55.5m), up from a loss of SEK 143.5m ($19.4m) on revenue 19.7% lower at SEK 2.9bn ($395m).
The company claims that the market for enterprise applications has changed character. While at one time it was a growth sector where the focus was obtaining new customers, Intentia says the market has entered a new, more mature phase, where the focus is on expanded relationships with existing customers and the sale of supplementary software and services.
However another mid-market player, Mapics Inc has had a totally different experience. In its first quarter to December 31, net income rose 37.7% to $2.3m on revenue 38.6% higher at $43m. It expects revenue for the year to grow at least 6% to $170m to $180m.
CEO Dick Cook is full of optimism, saying it is well on the way to transforming the company to deliver much of its license revenue from Microsoft platforms, either as the ERP backbone platform or as strategic extensions to existing implementations. Mapics has not had Intentia’s problem in getting new customers and says it closed a deal worth more than $1m against competition from a number of tier 1 competitors.
This article is based on material originally published by ComputerWire
