In response, i2 Technologies Inc. will keep cutting costs while undertaking a reverse stock split and promoting its latest solutions to both new and existing users, said Sanjiv Sidhu, chairman and CEO.
In financial results released Wednesday, i2 reported revenue of $84 million for the fourth quarter of 2004, compared with $98 million for the fourth quarter of 2003. Total full-year revenue for 2004 was $59 million, in contrast to $85 million for 2003.
But in a conference call with financial analysts on Wednesday, Sidhu said these results are "not acceptable to any one of us."
"As we enter 2005, we see a [supply chain] market dramatically different from the past few years. This change represents an opportunity for i2," according to Sidhu. However, Sidhu acknowledged that i2s financial results are not yet keeping pace with these opportunities.
In a statement announcing the results, i2 also said the companys board of directors has approved a stock split of the companys outstanding common stock at a 1-for-25 ratio, in order to return i2s share price to a level that will satisfy minimum bid price requirements for relisting the stock on Nasdaq.
During the conference call on Wednesday, Sidhu indicated that i2 views the Nasdaq listing as a factor in retaining and attracting customers.
Sidhu said that i2s current lack of a Nasdaq listing is a concern raised frequently by users.
i2 had been delisted from Nasdaq as the result of an internal audit, completed in July of 2003, that required the company to restate its earnings for the past four years. i2 expects to implement the stock split on Feb. 16, 2005. After that, the company will start the application process for relisting on Nasdaq.
On the plus side, i2 ended the fourth quarter cash-flow positive, a situation officials attributed to a strong focus during the fourth quarter on renewing maintenance contracts with existing users.
On Dec. 31, 2004, i2s cash and investments totaled $286 million, a net increase of $4 million over the balance on Sep. 30, 2003. In addition, license revenues for the quarter were $17 million, in contrast to $15 million for the fourth quarter of 2003. One of the deals signed during the fourth quarter was for over $1 million.
i2 currently has 66 active projects with customers, said Katy Murray, i2s chief financial officer, also during the call.