I2 Technologies Inc. posted a 42% decline in revenue for its fourth quarter ended Dec. 31, creating a $6.97 million loss for the quarter. The company's loss compares with a net income of $15.8 million the same time a year ago.
For the year, revenue fell to $494.9 million from $908.4 million in 2002. Net income for the year was $42.5 million.
The once-high-flying supply-chain-management software maker has been pushing for a comeback for more than a year, though some think i2 and its chief rival, Manugistics Inc., have little left in them. Yet some analysts say business has stabilized and is starting to pick up.
I2 would argue that's the case. In a statement released Tuesday detailing the company's financials, i2 chairman and CEO Sanjiv Sidhu said, "We are seeing signs that sales pipelines are beginning to rebuild."
But the company will likely continue to feel the effects of reaudits related to a restatement of i2's consolidated financial statements in 2003. The company was delisted from the Nasdaq Stock Market and is being investigated by the Securities and Exchange Commission over the matter (i2 listed $2.5 million in legal fees relating to the investigation).
"With sales cycles averaging nine to 12 months, I believe these effects are likely to remain for the next few quarters as we work to convert sales pipelines into bookings, and then bookings into revenue," Sidhu said.
The company's license revenue was $14.8 million, 4% higher than the third quarter, but a substantial drop compared with the $21.8 million in the fourth quarter of 2002.