Baan CEO Mary Coleman resigned Tuesday as the company projected fourth-quarter losses of $240 million to $250 million (the loss includes a $200 million restructuring charge). This was Baan’s sixth consecutive quarterly loss. In October, Baan posted a net loss of $25 million for the third quarter, or 12 cents per share.
Coleman, who assumed the chief executive post in May 1999, will be replaced in the interim by Pierre Everaert, chairman of Baan’s supervisory board. Before coming to Baan in 1997, Coleman held the top spot at Customer Relationship Management (CRM) solution provider Aurum, which the Dutch ERP vendor acquired that year.
Baan also announced yesterday plans to close 14 offices and lay off nearly 4 percent of its workforce.
Baan’s stock and the stocks of all the major ERP vendors were hit hard. According to Jim Zimmermann, “We were hoping for a major upswing in the ERP market now that Y2K concerns have been addressed, but this announcement by Baan could have a negative impact on the stock price of the major ERP vendors for quite a while. All of the major ERP vendors' stocks were hit hard on Monday by the double whammy of Baan’s announcement and a significant across-the-board decline in all the major US stock indices.”