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Baan reels as CFO exits
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January 14, 2000: 8:17 a.m. ET
Dutch business software maker's shares plunge 10% as troubles continue
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LONDON (CNNfn) - Dutch business software maker Baan Co. lost its chief financial officer Friday, James Mooney's resignation underscoring the company's leadership crisis just 10 days after chief executive Mary Coleman stepped down.
Baan shares reeled more than 10 percent to 7.01 euros in Amsterdam as investors interpreted Mooney's departure as the latest sign that Baan - Europe's No. 2 maker of enterprise resource-planning software, behind Germany's SAP - faces a formidable task in restoring itself to financial health.
The company's stock has more than halved since Jan. 3, the day before the company dealt a double blow to investors by forecasting a surprise fourth-quarter loss and the departure of its CEO after just six months in the job. The news sent the stock spiraling more than 32 percent in a single session.
The company, which makes programs that help businesses to better organize their internal affairs, has undergone a series of ill-fated restructurings in recent years. Coleman's brief tenure at Baan came after her predecessor, Tom Tinsley, left amid speculation he had been forced out over his own mistakes. Baan denied this was the case.
The company's warning of a loss for the fourth quarter attributed the deficit to $200 million of added costs as it focuses more on business-to-business e-commerce. Baan said it anticipates an overall fourth-quarter loss of $250 million - dashing of analysts' initial predictions of a net profit.
Mooney's resignation Friday left markets guessing when and where the next executive casualty might arise.
Baan said Mooney was leaving "to pursue other opportunities following a transition period." In May, a company executive used similar language in an interview with CNNfn.com to explain the reasons behind Tinsley's departure.
"Baan was the first company that faced up to the bad weather in the industry and started restructuring as a result," the official said at the time. "That job is now finished."
Mooney will be replaced by Robert Ruijter, formerly chief financial officer and an executive vice president in the Lighting Division of Royal Philips Electronics. Baan described that division as "historically the most profitable" for Philips, with annual revenues exceeding 5 billion euros ($5.13 billion) and 48,000 employees.
From 1993 to 1996, Ruijter served a director of finance for the Philips Group, where he oversaw the restructuring of the group's balance sheet.
Pierre Everaert, Baan's interim chief executive, said in a statement Ruijter had a proven track record in "effectively guiding companies through times of transition."
"In the challenging environment facing this company, to be able to attract someone of Rob's caliber and breadth of experience sends a strong signal of confidence to our investors." 
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