Struggling Dutch enterpise software vendor Baan's chances of surviving as an independent company, already in doubt, are looking even more bleak, following an announcement last week of restated financial results that reduced the company's 1999 revenue and widened its loss for last year to $US309.6 million.
In the audited 1999 financial statements released last week, the Netherlands-based enterprise said the "operating environment confronting the company raises significant uncertainty about [its] ability to continue as a going concern."The warning came several days after UK-based Invensys PLC extended a $US709 million offer to buy Baan after receiving far fewer commitments for the number of shares it had set as a condition for completing the acquisition. The Invensys offer, originally scheduled to expire two weeks ago, was continued until July 25 in an effort to save the deal.
Baan officials couldn't be reached for comment, but Pierre Everaert, the company's interim CEO, stated that the Invensys offer remains "the best way to secure Baan's future" in light of its financial problems.
"I think the 1999 [financial statements] confirm that additional financing would not solve the issue," Everaert said. "We need a strong strategic partner to take the viability issue off the table and restore customer confidence if we are to return to a normal business cycle.