Baan Reports Huge 4Q Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Baan Reports Huge 4Q Loss

Baan Co. is struggling to stay afloat. The vendor of enterprise resource planning software announced today it will report revenue of approximately $142 million and a staggering net loss of $250 million for its fiscal fourth quarter ended Dec. 31.

Baan blamed the poor results on an industrywide decrease in demand for ERP software, as well as on a radical restructuring plan that includes personnel reductions, office closures, sale of businesses, and write-down of certain assets. Baan said charges for these activities will account for approximately $160 million of the quarterly loss.

On the bright side, Baan said it generated about $100 million of new license contracts in the fourth quarter from such customers as AT&T, Delta Airlines, and Volvo. All told, Baan signed license agreements with 567 customers, of which 374 were new relationships.

Baan also said it has purchased the core assets of Baan Midmarket Solutions--the entity that resells Baan software into the indirect channel--from Vanenburg Ventures, which is Baan's largest shareholder. Red flags began flying earlier when it was revealed that Vanenburg funded a number of subsidiaries that acted as resellers of the Baan software suite, giving the impression that Baan was stuffing product into these affiliates and recognizing revenue whether or not the affiliates had customers. Baan today emphasized that it has entered into negotiations with Vanenburg regarding the purchase of other software companies owned by Vanenburg.

As part of the restructuring, Baan said it has reduced its workforce by about 1,250 employees in the quarter, bringing total headcount to about 4,975 worldwide. Additionally, 50 offices were closed or consolidated, and 14 businesses were sold or are in the process of being sold.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll