IoT
News
News
1/24/2002
05:04 PM
50%
50%
RELATED EVENTS
The Analytics Job and Salary Outlook for 2016
Jan 28, 2016
With data science and big data top-of-mind for all types of organizations, hiring analytics profes ...Read More>>

I2 Reports Losses For Quarter, Year

The company reports losing more than a half-billion dollars in the fourth quarter, but expects to return to profitability by the middle of the year.

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.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
How to Knock Down Barriers to Effective Risk Management
Risk management today is a hodgepodge of systems, siloed approaches, and poor data collection practices. That isn't how it should be.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.