Two sizable contract wins have produced a surge of confidence in ailing ERP vendor Baan Company NV and the company’s shares climbed 17% to 13.5 euros ($13.90) on Friday. While winning a $3m order from VNU World Directors and then grabbing a further contract of unspecified value from UK-based Weston Aerospace in head-to-head competition with SAP AG is good news, it may simply be a hopeful blip in a bleak marketplace.
What gives greater cause for confidence is that having fired 20% of its global workforce in 1998 (CI No 3,528), Baan is now recruiting 50 people for development and support roles in the Netherlands. Though hardly a sign that the company is gearing for an upswing, the market took it as an indicator that Baan has turned the corner.
Add to this takeover speculation that Baan is currently a bargain buy in an ERP sector ripe for consolidation and the shares, still trading at less than a third of the year’s high of $45.50, found no shortage of takers. The market is now waiting for next month’s second-quarter figures to see if the current burst of optimism is justified.
