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i2 beats earnings estimates by a nose

The business-to-business software maker's fourth-quarter net income tops analysts' raised expectations by a penny.

i2 Technologies topped analysts' raised expectations by a penny in the fourth quarter.

After market close Wednesday, the business-to-business software maker reported fourth-quarter net income of $44 million, or 9 cents per share, excluding amortization and special charges. Analyst consensus predicted a profit of 8 cents per share on revenue of $349.9 million, according to First Call.

"We clearly haven't seen a slowdown in our business so far, and we expect that our value proposition...positions us as a strategic investment to improve competitiveness even during slower economic growth," i2 Chief Executive Sanjiv Sidhu said.

Shares of Dallas-based i2 traded at $55.25 in after-hours activity on Island ECN's electronic trading network immediately after the release of quarterly results. i2 gained $5.70, or almost 12 percent, to $53.88 on the Nasdaq in Wednesday's regular trading ahead of the earnings report.

Including amortization, acquisition-related charges, expenses tied to stock compensation and losses from minority investments, i2 lost $727 million, or $1.80 per share, in the fourth quarter.

Fourth-quarter revenue increased 116 percent year over year to $378 million, in line with the company's forecast. i2 last month said it expected fourth-quarter revenue to top $370 million. About 36 percent of i2's overall revenue came from outside the United States.

License revenue increased 120 percent year over year to $244 million, 47 percent coming from high-tech companies, 22 percent from consumer goods and retail, and 17 percent from automotive and industrial companies. Existing customers generated 62 percent of i2's license revenue.

For the full year, i2 earned $108.4 million, or 26 cents per share, excluding special charges. The company reported 2000 revenue of $1.13 billion.