Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : i2 Technologies -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (2063)	10/17/2001 11:56:38 AM
From: Rob C.	Read Replies (1) \| Respond to of 2339

I2 Tech CEO: To Disclose Major Software Deal Next Week 16 Oct 18:17 By Pat Maio Of DOW JONES NEWSWIRES LOS ANGELES -(Dow Jones)- Software maker i2 Technologies (ITWO) Inc. said Tuesday it would cut about 1,000 jobs by early 2002, citing a deterioration in market conditions as revenue fell 39.4% in its third quarter from the same period a year-ago. The company also posted a $5.52 billion third-quarter net loss, compounded by the Sept. 11 attacks. The losses included charges of $4.74 billion for the completed acquisition of Aspect Development Inc. in June 2000. But the company met Thomson Financial/First Call estimates of a pro forma net loss of 13 cents a share in the quarter. Gregory Brady, i2's president and chief executive officer, said the attacks exacerbated a "recession-like environment" already hitting the company. This uncertainty caused customers to postpone or cancel projects and disrupt sales cycles, he said. On a telephone conference call with analysts, Brady disclosed that i2 is hurting due to the revenue slowdown. However, next week i2 plans to announce a "major contract" with a big corporation with 35 divisions where it will install its software that lets businesses share their inventory and product data with suppliers over the Web, he said. He declined to identify the business. Besides laying off 1,000 workers over the next few months, i2 Chief Financial Officer William Beecher said on the call that the company plans to offer stock options to employees in exchange for salaries cuts, require some senior executives to participate in the stock option plan with at least 20% of their salaries, and shutdown some operations around holidays. The company plans to reduce its cost structure sequentially by an additional 10% in the fourth quarter from the third quarter, and by a total of 20% over the next two to three quarters, Beecher said. The i2 executives said on the call that they expect to return to profitability in the second half of 2002. In announcing its third-quarter results Tuesday, the Dallas-based company reported a pro forma net loss of $55.3 million, or a loss of 13 cents a share, compared with net income of $30.58 million, or 7 cents a share, in the same year-earlier period. Revenues fell 39.4% to $194 million from $320 million in the 2000 third quarter, and 19.5% from the second quarter's $241 million. The layoffs weren't a surprise. When the company posted second-quarter results, Beecher said i2 would be forced to make difficult decisions regarding further reductions in its work force and expense structure. The company ended its third quarter with $750 million in cash and other investments, Beecher said. Shares of i2 closed Tuesday at $5.69, up 5 cents, or 0.89%, on volume of 14.58 million, compared with daily average volume of 12.03 million. The company hit a 52-week low of $2.98 a share on Sept. 27. In the after-hours market, the stock traded at $5.12 a share. -By Pat Maio, Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved Copyright 2001 Dow Jones & Company, Inc.