Confirming the fragility of the ERP sector, Dutch IT services company C/TAC NV now expects to report a first half net profit 50% down on the same period last year, when it reported net income of NG1.7m ($791,000) on revenue of NG13.1m ($6.1m).
C/TAC is a consultancy, reseller and integrator of SAP’s enterprise resource planning (ERP) systems, so its business depends directly on the current demand for R/3. The company said a major factor behind the downturn in the SAP market was that various important orders for new systems have been postponed over the last months, with a view to the coming turn of the millennium.
It added, however, that it expected to see an improvement from now on, as a lot clients have completed their Y2K programs, freeing up IT staff for new projects, such as ERP implementations. C/TAC declined to make predictions for the entire year, however.
