i2 posts $111 million Q2 revenue
Facebook Twitter google+ RSS Feed

i2 posts $111 million Q2 revenue

By siliconindia staff writer   |   Friday, 23 July 2004, 07:00 Hrs
Printer Print Email Email
BANGALORE: i2 Technologies, Inc. (OTC: ITWO), a leading provider of closed-loop supply chain management solutions, today announced results for its second quarter, ended June 30, 2004.

Total revenue for the second quarter was $111 million, as compared to $84 million in the previous quarter and $122 million in the second quarter of 2003.

License revenue in the second quarter was $12 million, consistent with the $12 million of license revenue recognized in the first quarter of 2004. This compares to $17 million of license revenue in the second quarter of 2003.

Development services revenue increased 39 percent sequentially to $9.2 million in the second quarter, up from the $6.6 million in the prior quarter and the $5.6 million in the second quarter of 2003.

Contract revenue recognized in the quarter was $32 million, as compared to $6 million in the prior quarter and $25 million in the second quarter of 2003. Contract revenue reflects amounts deferred as a result of the Company’s July 2003 restatement and is not typically associated with current business and cash collections.

Companies selecting i2 during the second quarter included Bed Bath & Beyond and Procurve Networking by HP in the Americas, Gambro and Severstal in EMEA, and NEC and Petron Corporation in Greater Asia-Pacific.

“I’m very pleased with the progress we’ve made this past quarter,” said Sanjiv Sidhu, i2 CEO. “We’ve closed new business, put the company on a much more solid financial footing, increased customer satisfaction, and are implementing the next generation of supply chain management solutions at leading customers. We are focused on growing our business and bringing value to our customers.”

Total costs and operating expenses for the second quarter of 2004 were $93 million, which includes approximately $4 million of restructuring costs, $2 million of operating expense related to employees no longer with the company, $1 million of legal expenses related to the settlement of the class action and derivative litigation and the SEC investigation and $1.0 million of costs associated with the contract revenue recognized. In addition, cost of license for the second quarter was lower than it would have been by $3 million due to the reversal of some accruals that were taken in earlier periods for potential customer claims that are no longer needed. This compares to $108 million in total costs and operating expenses in the first quarter of 2004, which included approximately $10 million for an accrual the Company had taken in the first quarter for costs associated with the potential resolution of the SEC investigation, and an additional charge of $2.4 million for legal expenses related to the class action and derivative litigation and the SEC investigation. In comparison, total costs and operating expenses in the second quarter of 2003 were $119 million, which included approximately $9 million of audit and legal fees related to the Company’s re-audits and investigations.

Operating income for the second quarter of 2004 totaled $18 million, as compared to an operating loss of $24 million in the prior quarter and operating income of $2.5 million in the second quarter of 2003.

Net income applicable to common stockholders for the second quarter totaled $12 million, or $0.02 earnings per diluted share. This compares to a net loss applicable to common stockholders of $30 million, or ($0.07) loss per diluted share, in the first quarter of 2004 and net income applicable to common stockholders of $1.0 million, or $0.00 earnings per diluted share, for the second quarter of 2003.

Cash and investments increased by a net $55 million in the second quarter. The Company finished the quarter with $345 million in total cash and investments. A significant source of cash in the quarter included $120 million from the investments into the Company by an affiliate of Q Investments and i2’s founder and CEO Sanjiv Sidhu. Significant uses of cash included $10 million for the settlement of the SEC enforcement proceedings, $42 million for the settlement of the class action and derivative lawsuits and a $9 million semi-annual interest payment on the convertible debt.



Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Philips
Sr. Executive
ISB
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
NIC
Reena Khanna
Founder
Solitaireworld
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset