i2 revenue plunges as major restructuring is planned

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i2 revenue plunges as major restructuring is planned

Faced with a tumble in revenue last quarter, i2 Technologies is implementing a major restructure that will cut costs by 30% by the end of the year, the company announced.

The company reported total revenue for the second quarter totalling $120m (£77m), compared with $249m for the second quarter of 2001, a drop of 52%.

Software licence revenues were $26m (£17m) for the quarter, compared with $106m in 2001- a 76% decline.

Overall, i2 said it lost $757,413 (£484,393) for the quarter.

"We are intensely focused on returning the company to profitability as quickly as possible," i2 chairman and chief executive officer Sanjiv Sidhu said.

"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 $50m (£32m) 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.

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