i2 revenue plunges, major restructuring planned
- 18 July, 2002 10:19
Faced with a sharp drop in revenue last quarter, i2 Technologies is implementing a major restructuring that will cut costs by 30 per cent by the end of the year, the company announced yesterday.
As it had already warned, the Dallas-based supply-chain software maker took a pummelling in the second quarter and is now in turn-around mode.The company reported total revenue for the second quarter totalling $US120 million, compared with $249 million for the second quarter of 2001, a 52 per cent drop. Software licence revenues were $26 million for the quarter, compared with $106 million in 2001 -- a 76 per cent decline.
Overall, i2 said it lost $757,413 for the quarter.
"We are intensely focused on returning the company to profitability as quickly as possible," i2 chairman and CEO Sanjiv Sidhu said in a statement. "As the leading supply-chain vendor in the market today, we will be aligning our sales efforts, product development and delivery for maximum business efficiency, while never losing sight of our customers."
The company also stated that its sales and development efforts will focus on i2's major suites. As part of its reductions, the company expects to take a restructuring charge of more than $50 million this quarter to cover things such as severance and facility closure costs.
Despite the losses, i2 claimed it had 77 customers go live with supply-chain products during the quarter. Among these companies were Adidas-Salomon, Barnes & Noble and Nippon Steel.