Executive shake-up hits i2 Technologies
The CEO of the struggling business software firm steps down, replaced by founder and chairman Sanjiv Sidhu. i2's president of American sales has also resigned.
Greg Brady, who joined the company in 1994, will continue to serve as a member of the board of directors and stay on in an advisory capacity during the transition, i2 said.
"At this stage of my career and for personal reasons, I made the decision that it was the right time for me to step aside as the leader of i2," Brady said. He did not provide details about his plans.
Sam Nakane, who was named chief operating officer of i2 on April 4, will work with Sidhu to manage operations. Nakane previously served as chairman and CEO of i2's Japanese operations.
i2 also announced Monday that Tom Cooper, president of Americas sales, is leaving the company. He will stay on in his position while the company creates a transition team.
Brady was named president of the Dallas-based company in 1994, becoming CEO of i2, which makes software that helps companies manage supplies and inventory, in May 2001. He came in at a difficult time, as many companies were scaling back on large technology purchases. i2 and its smaller competitors have also struggled to compete against established businesses such as SAP, which have strong positions in the market.
i2, which is scheduled to report first-quarter results Tuesday, recently lowered expectations for revenue, saying market conditions were weak. Total revenue for the quarter is now expected to be between $165 million and $175 million, down sharply from the $356.6 million it posted a year ago, and below the $186 million that analysts were expecting.
The company predicted that the quarterly loss would be approximately 7 cents to 8 cents per share on a pro forma basis, compared with a year-ago profit of $7.8 million, or 2 cents per share. Using generally accepted accounting principles, i2 expects to report a loss of 8 cents to 9 cents per share.
i2 has also struggled with customers. Earlier this month, it disclosed that it had sold German manufacturer Siemens flawed software that couldn't be fixed in time to meet a deadline. Nike publicly faulted i2 software last year for its failure to meet earnings targets.