i2 beats Street by 2½... DALLAS, Apr 18, 2000 i2 Technologies, Inc. (Nasdaq:
ITWO), the leading provider of intelligent eBusiness solutions, today announced
record results for the company's first quarter ended March 31, 2000. Total
revenues for the quarter grew to $186 million, 58% over first quarter 1999 total
revenues of $118 million. Net income exceeded $12 million, or $.07 per share in
the first quarter 2000, compared to a net loss of $1.2 million, or ($.01) per
share a year ago, excluding acquisition-related costs in both periods.
"We are excited to announce the results of an excellent first quarter for i2,
and one in which we gained a lot of momentum with TradeMatrix," said Sanjiv
Sidhu, CEO of i2. "Our results this quarter clearly demonstrate the strength of
the B2B market and i2's position as a leading marketplace service provider."
Following its initial introduction in October of 1999, i2's TradeMatrix platform
added multiple industry marketplaces. The company has been selected to power
both private and public marketplaces with aggregate spending measured annually
in trillions of dollars.
Leading companies in automotive, aerospace, high-tech, consumer goods, apparel,
timber, medical and logistics chose i2's TradeMatrix solutions to create new
online marketplaces or to improve their existing trading relationships. "i2 has
built a reputation for delivering value to our customers through
industry-leading solutions, including our dominant supply chain suite," stated
Mr. Sidhu. "In the first quarter of 2000, we were selected by such industry
leaders as IBM, Toyota, Honeywell, VF Corporation, Ryder, Nortel, Johnson &
Johnson, and many others to provide the most valuable marketplace solutions
available for their trading communities."
"The growing demand for our marketplace solutions drove both current revenues
this quarter and growth in our deferred revenues," i2's CFO, Bill Beecher,
explained. Deferred revenues grew dramatically -- up $64 million during the
quarter -- to a balance of $137 million on March 31. "These deferred revenues
will be recognized over time, along with additional recurring revenues
associated with the services we'll be providing to marketplace participants,"
continued Mr. Beecher.
i2 announced agreements in March to acquire Aspect Development and Supplybase
through stock swap arrangements. Aspect and Supplybase have the leading
solutions for content management, design, sourcing and procurement of both
standard and custom materials. "Our acquisitions of Aspect and Supplybase
clearly make us the B2B powerhouse with the most comprehensive set of solutions
available today," stated Mr. Sidhu. "Based on further analysis and initial
customer reactions, the combination makes even more sense to us today than when
we first announced it. We are very focused on the integration of our companies
and are making excellent progress."
i2 also partnered with Ariba and IBM to create the industry standard platform
for the next generation of B2B, complete with end-to-end solutions that will
help deliver on the promise of e-business. Customers are quickly responding to
the strength of the combined capabilities of these three companies. Since the
initial announcement of the partnership, several customers have chosen the team
to power their marketplaces, including such industry leaders as Volkswagen, Food
Distributors International, and major medical suppliers forming a new medical
products exchange.
Mr. Sidhu concluded, "In summary, the B2B opportunity is enormous and demand is
strong. The Tradematrix platform and breadth of solutions is the most
comprehensive in the market. i2's execution continues to be excellent, as
evidenced by another great quarter. Our partnerships and acquisitions will make
us even stronger. Put it all together and we're destined to achieve our mission
of providing tremendous value, and our goal to make TradeMatrix the obvious
choice for business."
Other News in the Quarter
Mergers and Alliances
i2 and Aspect Development, Inc., the global leader in collaborative solutions
for B2B marketplaces, announced a definitive agreement to merge. The merger
combines the strengths of two companies with proven track records to expand the
TradeMatrix B2B marketplace solution and rapidly deliver best- of-breed
e-commerce content, product design collaboration and direct procurement.
i2 entered into a definitive agreement to acquire Supplybase Inc., a leading
provider of solutions for web-based product design and sourcing of custom parts
and assemblies.
IBM, i2 and Ariba announced a broad, strategic alliance to deliver the
industry's first end-to-end solution for B2B e-commerce and collaboration. The
watershed alliance includes the tight integration of technologies, global
marketing and selling of targeted solutions, and an equity investment by IBM in
both Ariba and i2.
i2 formed a strategic alliance with Siebel Systems, whereby joint Siebel Systems
and i2 customers should benefit from having Siebel Systems' customer- centric
e-business applications seamlessly linked to i2's personalization, order
fulfillment and supply chain optimization solutions.
E.piphany and i2 announced an agreement to provide a solution that will empower
their customers to achieve and maintain a higher level of customer loyalty
through personalized interactions based on real-time data analytics and order
promising and fulfillment.
Netmosphere, Inc., the leader in e-business solutions for project collaboration
and communication, announced it is partnering with i2 to integrate its
Internet-based project collaboration technology with i2's TradeMatrix solutions
for Product Lifecycle Management (PLM).
i2 and Siemens IT Service, one of the leading companies providing managed
services for IT infrastructure, agreed on a strategic alliance to develop an
open marketplace that offers procurement management services.
i2 announced a reseller agreement with Unifi Technology Group, a leading
manufacturing consulting and integration company.
Marketplaces
United Technologies Corp., Honeywell and i2 announced their intention to launch
MyAircraft.com, a joint venture focused on developing and operating a
comprehensive open electronic marketplace for aerospace products and services
available to all industry participants.
i2 partnered with Toyota Motor Sales USA (TMS) to form iStarXchange, an
electronic marketplace serving the $100 billion U.S. automotive replacement
parts market for the service and repair industry. The business venture will be
an independent company, jointly owned by TMS and i2.
i2 announced the launch of SoftgoodsMatrix(TM), an open Web-based
business-to-business marketplace designed to connect retail, apparel, footwear,
home furnishings, floor covering and textile companies.
Volkswagen, IBM, i2 and Ariba signed a memorandum of understanding for a
strategic partnership to build a global digital marketplace.
i2 announced FreightMatrix(TM), a logistics industry marketplace which
integrates logistics planning, commerce and execution in a comprehensive
business-to-business electronic marketplace. Ryder System, Inc., plans to be the
anchor third-party logistics provider and Central Transportation International
plans to be the anchor less-than-truckload motor carrier for FreightMatrix.
i2 announced eServiceMatrix(TM), a B2B and business-to-consumer (B2C)
marketplace solution for the management of aftermarket parts and service.
Fasturn, Inc., in association with i2, announced the development of Fasturn.com,
a marketplace for procurement and intelligent sourcing solutions to address the
complex relationship between retailers, buyers and manufacturers in the apparel
industry.
Customers
Ericsson's Consumer Segment purchased i2's solutions to enhance its supply chain
management.
U.S. Steel Group, a division of USX Corporation, purchased i2's solutions for
hot mill, cold mill and finishing mill scheduling.
Tech Data Corporation, a leading global distributor of IT products, logistics
management and other added-value services to technology resellers, purchased
i2's solutions to help deliver superior customer satisfaction.
Nucor Steel, one of the nation's leading manufacturers of steel products,
purchased i2's Metals Industry Solution for implementation at the company's
Crawfordsville, Ind. plant.
Technology
i2 announced the launch of Fabless Master Planning Services, which provide
Internet-based capacity and inventory planning for the growing community of
fabless semiconductor companies.
i2 announced it has completed the acquisition of IBM's software for planning,
retail merchandising and replenishment, including INFOREM(R) and Makoro for
Merchandise Planning(R). The announcement is a strategic step in advancing the
i2, IBM and Ariba alliance.
Net Perceptions, Inc. announced that i2 plans to license Net Perceptions'
Knowledge Refinery for integration into i2's TradeMatrix B2B and B2C marketing,
commerce, fulfillment and customer care solutions.
About i2:
i2 is the leading global provider of intelligent eBusiness solutions. Founded in
1988, i2's vision is to add $50 billion of value for its customers by the year
2005. i2 is headquartered in Dallas, TX, has approximately 3,200 employees and
maintains offices worldwide. For additional information, visit i2 on the Web at
www.i2.com.
TradeMatrix is a comprehensive electronic business solution that enables
companies to deploy business-to-business and business-to-consumer portals.
TradeMatrix offers the broadest spectrum of solutions and hosted services
available including procurement, commerce, fulfillment, customer care, retail,
planning and product development, enabling customers, partners, suppliers and
service providers to conduct business in real time. TradeMatrix services and
marketplaces are powered by i2's advanced optimization and execution
capabilities for improved decision making. i2 and the i2 logo design are
registered trademarks of i2 Technologies, Inc. TradeMatrix, SoftgoodsMatrix,
FreightMatrix, HightechMatrix, and eServiceMatrix are trademarks of i2
Technologies, Inc.
Cautionary Language:
This press release may contain forward-looking statements that involve risks and
uncertainties, including statements regarding the expected delivery and benefits
of use of i2's products. Among the important factors which could cause actual
results to differ materially from those in the forward-looking statements are
competition, market demand, technological change, strategic relationships,
recent acquisitions, international operations and general economic conditions.
For additional discussion of factors which could impact i2's financial results,
please refer to i2's recent filings with the SEC, particularly the Form 10-K
filed March 22, 2000.
For additional information, please contact:
Brent Anderson
i2 Investor Relations
(469) 357-6012
brent_anderson@i2.com
i2 TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, March 31,
1999 2000
ASSETS
Current assets:
Cash and cash equivalents $454,585 $456,936
Short-term investments 124,806 181,464
Accounts receivable, net 157,586 187,065
Prepaid and other current assets 10,607 26,650
Deferred income taxes 15,868 17,638
Total current assets 763,452 869,753
Furniture and equipment, net 50,483 59,907
Deferred income taxes and other assets 47,614 331,323
Total assets $861,549 $1,260,983
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $20,039 $22,471
Accrued liabilities 81,246 114,315
Deferred revenue 72,617 136,689
Income taxes payable 4,511 6,585
Total current liabilities 178,413 280,060
Long term debt 350,000 350,000
Deferred income taxes 968 968
Total liabilities 529,381 631,028
Stockholders' equity:
Preferred Stock, $0.001 par value,
5,000,000 shares authorized, none issued --- ---
Common Stock, $0.00025 par value,
500,000,000 shares 39 39
authorized, 155,412 and 157,489 shares
issued and outstanding, respectively
Additional paid-in capital 297,879 584,008
Accumulated other comprehensive loss (4,126) (4,209)
Retained earnings 38,376 50,117
Total stockholders' equity 332,168 629,955
Total liabilities and stockholders'
equity $861,549 $1,260,983
i2 TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended
March 31,
(unaudited)
1999 2000
Revenues:
Software licenses $74,071 $113,584
Services 28,784 46,870
Maintenance 14,744 25,826
Total revenues 117,599 186,280
Costs and expenses:
Cost of software licenses 3,161 5,366
Cost of services and maintenance 28,979 41,072
Sales and marketing 42,733 66,210
Research and development 30,322 39,846
General and administrative 12,171 16,607
In-process R&D and acquisition-related
expenses 303 557
Total costs and expenses 117,669 169,658
Operating income (70) 16,622
Other income, net 1,078 2,499
Income before income taxes 1,008 19,121
Provision for income taxes 2,534 7,380
Net income $ (1,526) $11,741
Net income per share $(0.01) $ 0.08
Net income per share, assuming dilution $(0.01) $ 0.06
Weighted average common shares outstanding 147,392 156,500
Weighted average common shares outstanding,
assuming dilution 147,392 183,025
Excluding in-process research & development
and acquisition-related expenses
Net income $ (1,223) $12,298
Net income per share $(0.01) $ 0.08
Net income per share, assuming dilution $(0.01) $ 0.07
SOURCE i2 Technologies, Inc. |
