i2 completes reaudit

i2 Technologies announced that it has finished reauditing its financial results for the past five years and reported a $41.3m...

 i2 Technologies has finished reauditing its financial results for the past five years and reported a $41.3m (£25.5m) first-quarter profit.

Sanjiv Sidhu, i2's chairman and chief executive officer, said he was optimistic that the completion of the reaudit process would help the supplier start software licensing deals with users that have been delaying purchases. It also could enable i2 to get its stock listed on the Nasdaq exchange again, Sidhu added.

But i2 still faces an investigation of its accounting practices by the US Securities and Exchange Commission. The company said that its second-quarter results will break even at best because of a steep drop in revenue, both sequentially and year on year.

The reaudited results i2 released were far out of line with what it had originally reported for the period from 1998 through to last year.

Cumulative revenue for those years was reduced by more than $350m (£216m), although i2 said that about two-thirds of that amount may be reinstated in the future.

Sidhu said the company's $441m (£272m) in cash holdings were unaffected by the reaudit. But he acknowledged that the process had an impact on both i2 and its users.

Karen Peterson, an analyst at Gartner, said users who have put off upgrades to i2 Six should be more confident that i2 will still be around to support them.

But, she added, the company "has done little to convince the broader buying public that i2 is a 'safe' solution".

Peterson advised prospective new customers to buy i2's software in increments to minimise their risks.

Marc L Songini writes for Computerworld

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