I2 Reports Losses For Quarter, Year - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
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.
Sponsored Video
Flash Poll