STOCKHOLM (04/20/2000) - Troubled business software supplier Baan Co. NV today extended its losing streak to seven consecutive quarters, reporting a widening loss for its first fiscal 2000 quarter despite one-time gains from sales of assets.
Baan's net loss for the quarter ended March 31, including one-off items, widened to US$26 million, or 11 cents per diluted share, as compared to a net loss of $19 million, or 9 cents, for the corresponding quarter last year, Baan said in a statement.
The quarter's net loss included one-time gains of $49 million, Baan said, resulting from a $31 million net gain from the company's February sale of its Coda business division and the $20 million Baan pocketed from the March sale of a minority stake in human resource management software vendor Meta4, minus $2 million in interest expenses. [See "Baan Pockets US$50M from Sale of Coda Business," Feb. 8.]The per share earnings compare to a consensus estimate of an expected loss of 12 cents per share, one-off items excluded, by three analysts polled by First Call/Thomson Financial.
Rival ERP (enterprise resource planning) software vendor SAP AG, of Walldorf, Germany, yesterday reported lower first-quarter income, despite higher revenue, citing a "challenging" business environment. [See "SAP Posts Lower Q1 Net Income on Rising Revenue," April 19.]Revenue for the first quarter, meanwhile, dropped to $106 million, from $176 million a year ago. Software license revenue dropped to $27 million, from $65 million a year ago, while maintenance and service revenue fell from $111 million to $79 million, Baan said.
Unimpressed investors voted with their feet. In midday trading today in Amsterdam, following the release of the report, Baan shares were trading at 4.51 euros (US$4.24), down by more than seven percent from the previous close.
Looking forward, Baan said that it will narrow its target market to manufacturing and engineering companies, as well as continue ongoing cost savings initiatives.
Baan, with dual headquarters in Barneveld, the Netherlands, and Reston, Virginia, can be reached at +31-342-42-8888 or at +1-703-234-6000, or via the Web at http://www.baan.com/.