View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 12, 1998

SHARE PRICE CRASHES AS BAAN OPENS SHOWCASE CONFERENCE

By CBR Staff Writer

Dutch ERP software outfit Baan Co NV could hardly have made a worse start to its Baan World Europe 98 showcase conference when it announced a profits warning. It promptly saw its shares plunge 30% to 22.30 guilders, the lowest level since April 1996. The markets also pushed up shares of Baan’s rival and leading ERP player SAP AG by 7%. Last week SAP reported that third quarter sales were up 43%. The Baan news makes the SAP results look even better, one trader said. Baan’s excuses for its poor performance are global economic conditions and market volatility, and re- allocation of customers’ IT budgets to fix Year 2000 problems – all difficulties that SAP had to grapple with. Baan said it had been hit by decreased software expenditure, notably in the United States. In consequence, Baan says 24 to 26 transactions with large organizations were deferred in the quarter. For the first nine months, Baan expects revenues to show a 30% increase to around $600m while the third quarter is likely to show revenues in the $190m to $195m range, compared with $173.2m in the same period last year. What rattled the market however was a forecast loss for the third quarter of between $0.13 to $0.16 per share. One consolation is that Baan expects to report a record number of 500 license sales transactions in the third quarter compared with 450 in the previous three months.

Content from our partners
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape
Green for go: Transforming trade in the UK

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU