Ailing i2 lands $100m investment

Supply-chain management software maker i2 Technologies said it will receive a $100m (£56.6m) cash infusion from one of its...

Supply-chain management software maker i2 Technologies said it will receive a $100m (£56.6m) cash infusion from one of its backers, investment firm Q Investments.

The news came as i2 hosted its annual user show and attempted to reassure customers nervous about the beleaguered supplier's future.

Last month, the company announced layoffs and other spending cuts intended to trim 10% off its operating expenses, which have persistently outstripped i2's sales. The company last week announced a $30m loss in its first quarter, a period in which revenue declined 47% from last year's first quarter.

The $100m adds to the $259.1m in cash and cash equivalents i2 had on hand as of 31 March. The investment raises Q Investments' ownership stake in i2 to 26%.

i2 will expand its board of directors to seven members, adding two new directors representing Q Investments.

i2 said last month it had earmarked $42m for use in a potential settlement of class-action lawsuits against the company.

The company is under investigation by the US Securities and Exchange Commission (SEC) for accounting violations. Last July, it restated four years' worth of financial results.

i2 cited a variety of issues in SEC filings explaining the correction, including improper timing in its revenue recognition practices, a problem similar to the one that led to Computer Associates International's management purge and legal trouble.

Stacey Cowley writes for IDG News Service

Read more on Integration software and middleware

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close