X

i2 meets Wall Street expectations

Supply chain management software maker i2 Technologies reports flat net income for the first quarter, meeting analysts expectations.

Kim Girard
Kim Girard has written about business and technology for more than a decade, as an editor at CNET News.com, senior writer at Business 2.0 magazine and online writer at Red Herring. As a freelancer, she's written for publications including Fast Company, CIO and Berkeley's Haas School of Business. She also assisted Business Week's Peter Burrows with his 2003 book Backfire, which covered the travails of controversial Hewlett-Packard CEO Carly Fiorina. An avid cook, she's blogged about the joy of cheap wine and thinks about food most days in ways some find obsessive.
See full bio
Kim Girard
Supply chain management software maker i2 Technologies reported flat net income for the first quarter, meeting analysts' expectations.

i2 posted net income of $4 million, or 5 cents a share, for the first quarter, excluding $3 million to cover acquisition-related charges.

Results met expectations of Wall Street analysts polled by First Call.

That compares with net income of $3.5 million, or 5 cents a share for the first quarter of 1998.

The Irving, Texas-based firm reported revenues of $117.2 million for the quarter ended March 31, an increase of 64 percent over the quarter a year earlier.

License revenues of $74 million helped to drive growth with a 65 percent increase compared to first quarter 1998 licenses of $44.9 million. The company said operating expenses for the quarter were higher than targeted because the company hired more employees than expected in the quarter to prepare for future growth in the supply chain market.

i2's existing customers such as IBM, Compaq, Philips, and others accounted for 54 percent of license revenues, while the company said new customers including Mitsui, Celestica, Russell, and Delta Faucet brought $33.7 million in new licenses.