Dutch business software company Baan reported a USD31.7 million third quarter net loss on October 29 and announced a major restructuring, including cutting 20% of jobs and appointing a new president. Baan painted a gloomy forecast for 1999 and said it planned to take a one-off charge of USD110 million before taxes in the fourth quarter as part of a wide-ranging reorganisation to cut costs. The firm posted a loss per share of USD0.16, having warned on October 12 it was on course for a USD0.13-0.16 per share loss. In the same period of 1997 the fast-growing business, then the darling of the Amsterdam and New York stock markets, had a net income of USD18.3 million and fully diluted earnings per share of USD0.09.Baan said the third quarter loss was accompanied by a 57% jump in operating expenses and 69% increase in headcount to approximately 6,000 employees. The firm said business was under pressure from global economic difficulties, spending cuts by large customers, tough competition and the millennium problem. These considerations meant customers were delaying projects and purchasing decisions while price pressures were growing. "The Company expects these factors to continue to impact license revenues and these trends will continue into 1999 until global economic conditions improve and the Year 2000 problems are solved," Baan said.It aimed to implement a lower cost...

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