The company has made "significant progress," says CEO Michael McGrath; the stock price increase is the company's first in four years.
Troubled supply chain management software developer i2 Technologies Inc. is finally seeing light at the end of the tunnel.
The company reported increased license revenue for its second quarter this year, and a stock price that went up for the first time in four years.
After the close of the market Thursday, Dallas-based i2 reported license revenue of $14.3 million, a 28 percent increase from the $12 million in license revenue reported in 2004.
i2s earnings per share jumped from 62 cents per share for the second quarter of 2004 up to $1.66 per share this past quarter.
i2 was relisted July 21 on the Nasdaq National Market. Trading began July 25.
Total revenue for the second quarter was $98.5 million, down from $110.6 million in the second quarter, with maintenance revenue taking a $300,000 hit in the second quarter.
Despite the decrease, i2 was able to close the gap a bit between its cash on hand versus outstanding debta major concern for customers and investors.
Click here to read more about Microsoft and i2 teaming with customers and partners around a new joint supply-chain-management solution.
The company ended its second quarter with $298.3 million in cash and investments, up from $277.2 million in the prior quarterwhich closed the gap between cash and long term debt to $18.5 million.
"i2 has made significant progress in bringing its operating expenses in line with its business," said CEO Michael McGrath. "I believe we have a cost structure aligned with our business."
The companys apparent about-face can be attributed to incumbent McGrath, who joined the company in February.
He instituted a company-wide reorganization plan that changed the way i2 sells softwareit now combines software and services under a single umbrellabrought in new license revenue through deals with Dassault Systemes that raised about $10 million, and pumped out the next-generation software.
McGrath, considered by some an interim CEO, is not resting on his momentary laurels.
He laid out a plan going forward to further close the cash-to-debt gapand stem the cost of unpredictable legal fees, the result of federal investigations and customer law suits that have plagued the company in the past.
McGrath said he would continue to look internally for non-core areas to raise fundsi2 sold off its San Diego-based Trade Services Corp. for $3 million this monthlook for partnering opportunities, equity investments, and refinance the companys current debt.
"We have a lot left to do," said McGrath during Thursdays call with press and analysts. "Were really just getting started; i2 has a lot of potential. We are not done by any means."
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