Jan 23, 2002 (07:01 PM EST)
I2 Reports Losses For Quarter, Year
Read the Original Article at InformationWeek
I2 Technologies Inc., a maker of supply-chain-related business software, Thursday reported a fourth-quarter net loss of $589.9 million, an improvement over the $727.2 million loss reported for the same period a year ago. However, total revenue plummeted to $193.9 million for the quarter ended Dec. 31, from $377.9 million a year ago.
For the year, i2 reported that losses rose to $7.75 billion in 2001, or $18.68 a share, from $1.75 billion, or $4.83 a share, in 2000. Total revenue dropped to $985.6 million from $1.12 billion in 2000. On a pro forma basis, which excludes certain expenses, the company reported a loss of $34.7 million, or 8 cents a share, for the quarter, compared with a profit of $44.45 million, or 9 cents a share, a year ago.
Despite the losses, i2, whose products many companies found too difficult to deploy and lacked a quick enough return on investment to warrant buying during a recession, said it expected a turnaround this year. "We are encouraged by our solid performance in the fourth quarter," CEO Greg Brady said in a statement. "We believe business conditions are beginning to improve and that the company is on track to return to operating profitability in the second half of 2002."
To meet changing customer demand, i2 has focused on software that helps companies find supply-chain inefficiencies to cut costs. In addition, the company has cut costs itself, including reducing its workforce by about 20%. The company plans to further reduce labor costs by shifting half of its development work to India. I2 competitors Commerce One Inc. and Ariba Inc. have also suffered severe losses as companies shift focus from buying and selling over the Internet to buying software that adds internal efficiencies to save money.