News

I2 to cut jobs in anticipation of Q2 losses

I2 Technologies is to lay off some of its 4,800 workers and post a second-quarter loss of more than $80m (£52m). The company is also considering taking a $710m (£466m) charge against tax assets.

Details will be disclosed during i2's quarterly earnings call on 16 July, David Becker, i2's senior vice-president for finance, said.

The supply chain management software vendor expects a pretax loss of between $85m and $88m for the quarter, based on revenue of $117m to $120m. The company could also take a $710 million charge that would drive the loss up to about $798 million. However, Becker said the company has not yet determined whether it will take that action. The charge would be against tax losses compiled over the last three years as a result of employees exercising their stock options back when share prices were high.

Becker said that "constrained spending" by i2's customers directly contributed to the losses. The company has many customers who have also been hit by the economic downturn, further adding to its troubled economic picture.

Despite its difficulties, the company aims to return to break-even status in three or four quarters, Becker said.

I2's stock fell 13 cents to $1.37 per share in early afternoon trading. AG Edwards & Sons and SWS Securities have both downgraded i2 shares to a Sell rating.

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy