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To: Lizzie Tudor who wrote (15948)	1/27/2003 3:30:17 PM
From: fedhead	Read Replies (1) \| Respond to of 57684

Blowoff phase off what. Anindo

To: Lizzie Tudor who wrote (15948)	1/27/2003 4:03:29 PM
From: stockman_scott	Respond to of 57684

I2 Technologies Reports SEC Probe By MARCELO PRINCE DOW JONES NEWSWIRES Monday, January 27, 2003 · Last updated 12:50 p.m. PT NEW YORK -- I2 Technologies Inc. Monday said the Securities and Exchange Commission has begun an investigation into possible accounting improprieties at the software company. The Dallas company also said it hired Deloitte & Touche LLP to re-audit its financial statements for 2000 and 2001. Arthur Andersen LLP, which has wound down its operations in the wake of the Enron Corp. scandal, was i2's auditor until May 2002. The news sent i2's shares tumbling 32 cents, or 25 percent, to 94 cents in afternoon trading on the Nasdaq Stock Market. I2 warned that Deloitte's review could result in material adjustments to past periods and SEC staffers had recently opened an "informal inquiry" into the matter. In a November SEC filing, i2 disclosed that its board was investigating allegations of improper accounting, including how revenue from certain contracts was reported. The allegations were raised by two former senior executives, Reagan Lancaster and Claudio Osorio, who are now partners in a Dallas venture-capital firm. An initial review by i2's board found no problems, but the former executives recently provided additional information to the board. "We take our fiduciary responsibility very seriously and believe under the circumstances a re-audit is the right thing to do," said Sanjiv Sidhu, i2's chairman and chief executive, on a teleconference with analysts. "It does not dim my outlook for our performance in the future." I2's chief financial officer, Bill Beecher, declined on the teleconference to discuss details of the allegations or the ongoing review. Also Monday, i2 reported preliminary fourth-quarter figures, which showed its loss narrowed as expense cuts offset another drop in sales. The results were better than analysts had predicted. The company reported a net loss of $12.4 million, compared with a loss of $589.9 million a year earlier. Revenue fell 38 percent to $119.9 million in the fourth quarter. I2 has struggled with a sharp drop in demand and a shift to smaller purchases of its supply chain software, which is used to manage factories, distributors and retail stores. It underwent several restructurings and fired 1,400 of its 4,750 employees last year.