Dallas --
January 27, 2004i2 Technologies, Inc. (OTC: ITWO), a leading provider of end-to-end supply chain management solutions, today announced results for the fourth quarter and fiscal year 2003.
i2’s license revenue rose four percent sequentially in the fourth quarter to $14.8 million. This compares to $14.2 million of license revenues in the third quarter of 2003 and $21.8 million in the fourth quarter of 2002.
Development services revenue, included in the contract revenue line of the income statement, grew 29 percent sequentially, reaching $6.7 million in the fourth quarter. This compares to $5.2 million in the prior quarter and $4.8 million in the fourth quarter of 2002.
“We are seeing signs that sales pipelines are beginning to rebuild, but have also felt the lingering effects of the re-audits,” said Sanjiv Sidhu, i2 chairman and CEO. “With sales cycles averaging nine to 12 months, I believe these effects are likely to remain for the next few quarters as we work to convert sales pipelines into bookings, and then bookings into revenue.”
Total fourth quarter revenues were $98 million, as compared to $117.3 million in the third quarter of 2003 and $168.9 million in the fourth quarter of 2002. The majority of the decrease in total revenues from those reported in the third quarter is due to a $17.1 million decrease in the amount of deferred contract revenue recognized in the quarter.
Total costs and operating expenses for the fourth quarter of 2003 were $99.6 million, including approximately $2.5 million for legal fees related to the SEC investigation and the class action lawsuit and approximately $0.8 million of expenses related to the deferred contract revenue recognized as part of the contract revenue line of the income statement. This compares to $103.3 million in total costs and operating expenses in the third quarter of 2003 and $148.8 million in the fourth quarter of 2002. Operating loss for the fourth quarter of 2003 totaled $1.9 million.
The company reported a net loss of $7.0 million or $0.02 loss per share for the fourth quarter. This compares to net income of $7.1 million, or $0.02 earnings per share in the third quarter of 2003 and net income of $15.8 million, or $0.03 earnings per share, for the fourth quarter of 2002.
Fiscal Year 2003 Results
License revenues for the fiscal year 2003 were $65.4 million, down 26 percent from the prior year. Development services revenues for 2003, included in the contract revenue line of the income statement, totaled $26.8 million as compared to $13.2 million for 2002.
Total revenues for 2003 were $494.9 million, as compared to $908.4 million for 2002.
For the full year 2003, the company reported net income of $42.5 million, or diluted earnings per share of $0.09 as compared to a net loss of $898.9 million, or $2.10 loss per basic and diluted share, for 2002.
Cash use in the fourth quarter totaled $27.6 million. The Company ended the year with $309.4 million in total cash and investments.
Highlights for the Fourth Quarter and Fiscal Year 2003
New customers during the year came from all regions and a variety of verticals, including The Brick Warehouse Corporation, Canada’s largest retailer of furniture, mattresses, appliances and home electronics and Hitachi Global Storage Technologies, a global provider of storage products for desktop computers, high-performance servers and mobile devices.
Current customers turning to i2 to drive additional value from their closed-loop supply chain initiatives included Airbus and Rockwell Collins in Aerospace and Defense; Woolworths Ltd., Del Monte Foods, Dole Food Company, and PSS World Medical in Consumer Goods and Retail; Mitsubishi, Hitachi, and NEC in High Tech. Additionally, Industrial companies Cummins, Inc. and Krones, and Metals leaders JFE Steel and International Steel also chose i2 during the year.
Approximately 40 customers went live with i2 Solutions during the fourth quarter, totaling 178 companies in 2003. Companies included Del Monte Foods; Meidi-Ya Co, Ltd., Toshiba, Krones AG, EWK, LSG Sky Chefs and Heinz Wattie’s Limited.
About i2A leading provider of end-to-end supply chain management solutions, i2 designs and delivers software that helps customers optimize and synchronize activities involved in successfully managing supply and demand. i2 has more than 1,000 customers worldwide--many of which are market leaders--including seven of the Fortune global top 10. Founded in 1988 with a commitment to customer success, i2 remains focused on delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at
www.i2.com.
i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.
i2 Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties including forward-looking statements regarding the customer's ability to implement or integrate i2 solutions successfully and in a timely fashion, receive expected functionality and performance, or achieve benefits attributable to i2 solutions. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Annual Report on Form 10-K filed on July 21, 2003 and the Quarterly Report on Form 10-Q filed on November 14, 2003. i2 assumes no obligation to update the forward-looking information contained in this news release.
For further information, please contact:
Melanie Ofenloch
i2 Corporate Communications
469-357-3027
melanie_ofenloch@i2.com
Barry Sievert
i2 Investor Relations
469-357-1000
barry_sievert@i2.com
