Marty, here's a follow up on y2k change in spending. Here is a business software systems compy that should be seeing upgrades, but instead sights slowing sales as companies apply more resource to y2k. I believe old systems should be replaced. That is not shared by decision makers.
Regards, Mark
Baan Company Announces Expected Results For 1998 Third Quarter
PR Newswire - October 12, 1998 02:16
BARNEVELD, The Netherlands and RESTON, Va., Oct. 12 /PRNewswire/ -- Baan Company N.V. (Nasdaq: BAANF; Amsterdam: BAAN), a global provider of business software, today announced that preliminary results for the first nine months of 1998 show a 30% increase in revenues to approximately $600 million over the comparable period in 1997. For the third quarter ended September 30, 1998, the Company expects to report revenues in the range of $190 million to $195 million and a loss of $0.13 to $0.16 per share. These anticipated results are preliminary and are based on partial information and management assumptions. The Company plans to announce its final results for the quarter on October 28, 1998.
The Company believes license revenue growth was affected by a combination of the following factors: global economic conditions and market volatility, which produced uncertainty among customers in making IT purchasing decisions, and reallocation of customers' IT budgets to fix the Year 2000 problems of their existing systems. As a result, potential customers deferred or delayed IT projects and those that signed deals, decreased their software expenditures, particularly in the U.S. market. Baan expects these trends to continue into future periods until economic conditions improve and companies complete the correction of their Year 2000 problems. In light of these uncertain economic conditions the Company is reevaluating its business outlook and reassessing the impact on its future operating plans.
Despite the shortfall in license revenue, the Company expects to report a record number of more than 500 license sales transactions, as compared to 450 transactions in the second quarter of 1998. The Company estimates that over 80% of this quarter's transactions were with new customers. For the first time in the Company's history more than half of the new customer transactions were sold on the Microsoft NT operating system.
The Baan Company has been transitioning to a high-volume, low-cost distribution model through the expansion of its indirect channel to more than 220 resellers. As a continuation of this strategy, the Baan Company will announce today at its Baan World Europe '98 event, an innovative licensing agreement with Microsoft Corporation, that combines Baan's complete business software offering with certain Microsoft software. The Baan Company plans to redefine the business software market with Microsoft by offering a simple license that permits any company to quickly deploy software at a lower fixed cost per desktop, with a more predictable cost of implementation and a lower total cost of ownership. The pricing of the combined offering includes the software licenses, upgrades and support and starts at $99 per desktop per month over a three-year period.
About Baan Company
Founded in 1978, Baan Company is a leading global provider of business software. Baan Company's best-in-class products define the market for high volume, packaged enterprise applications by delivering the most comprehensive portfolio of integrated, Year 2000 compliant, software components to address the continuous improvement of core business processes common to any company. Baan Company uniquely supports continuous business improvement with its Dynamic Enterprise Modeling capabilities and with products that are faster to implement and use, and more flexible in adapting to business changes. Its evergreen products help clients respond more quickly to changing customer needs by optimizing the management of real-time information throughout the entire value chain.
Baan Company has dual headquarters in Barneveld, The Netherlands and Reston, Virginia, USA. The Company's Common Stock is registered on the NASDAQ Stock Market under the symbol BAANF and on the Amsterdam Stock Exchange under the symbol BAAN.
Certain statements in this press release are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. In particular, statements using the words "will," "plans," "expects," "believes," "anticipates," or like terms are by their nature predictions based upon current plans, expectations, estimates, and assumptions. These statements are subject to a number of risks and uncertainties that could significantly affect outcomes, which may differ materially from the expectations, estimates, or assumptions expressed in or implied by any such forward-looking statements. Specific risks applicable to such forward-looking statements include risks associated with the failure to conclude any proposed agreement and/or changing conditions in the marketplace. Other risks and uncertainties associated with the businesses of Baan Company may be reviewed in the Companies' public filings, including Baan Company's Report on Form 6-K for its fiscal quarter ended June 30, 1998 and Baan Company's Report on Form 20-F for the 1997 fiscal year. Those documents are publicly on file with the U.S. Securities and Exchange Commission.
"Baan" is a registered trademark of Baan Company, and any trade, product, or service name referenced in this release using the name "Baan" is a trademark and/or property of Baan Company. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders.
SOURCE Baan Company N.V.
/CONTACT: David Spille, dspille@baan.com, or Mark Wabschall,
mwabschall@baan.com, 703-467-3201, or Andrea Slee, aslee@baan.nl,
+31-342-428609, all of Baan Company Investor Relations, or Rinze Terluin of
Baan Company Public Relations, +31-20-487-4000, or +31-70-30-65769; or
Al Bellenchia of Fleishman-Hillard, 212-453-2256, for Baan Company/
/Web site: baan.com
(BAANF) |
