Supply chain management software maker i2 is regrouping after losing CEO Greg Brady and reporting a large loss and falling revenues.
i2 Technologies Inc. is regrouping on the news of the loss of two top executives yesterday and a poor earnings report today.
CEO Greg Brady resigned his post and Tom Cooper, executive vice president of Americas Sales, announced his intention to leave the struggling supply chain management software maker.
Sanjiy Sidhu, founder and chairman of the companys board of directors, has assumed Bradys role.
i2 makes supply chain management software and also enables companies to create electronic marketplaces, and boasts customers the likes of IBM, General Motors Corp. and 3M.
The Dallas-based company reported a pro forma loss of $31.5 million, or 7 cents per share, for the firs quarter of 2001. Total revenues for the quarter were $168 million, compared with $198 million in the quarter ended Dec. 31, 2001, and $364 million in the first quarter of last year.
Brady, who joined the company in 1994 and was appointed CEO last spring, will remain in an advisory capacity with i2 during the transition. Cooper, too, will stay on until a replacement has been found for his position. Brady will also continue to serve as a member of i2s board of directors, according to officials.
Sidhu, who founded i2 in 1988, said that his former colleague Brady deserves a lot of credit for helping build i2 into the company it is today. Brady stood out as one of the industrys leading executives, "a cultural figurehead that offered the perfect operational complement to Sidhu in his chairman role," according to Simon Pollard, analyst at AMR Research, in Boston.
However, recent upheavals in IT industry and a particularly rough 18 months for i2 have left little more than shaky ground for Brady to stand on. According to industry experts, i2 will need to find a new game plan in common with its competitors, primarily Manugistics Group Inc., Ariba Inc. and Commerce One Inc. At the same time, i2 faces growing competition from enterprise resource planning software vendors SAP AG and PeopleSoft Inc., which have moved steadily into the business sourcing sector.
In the role of CEO, Sidhu will work to refocus i2s sales and development organizations. He owns about 35 percent of i2 stock.