i2 Predicts Second Quarter Losses
Dallas-based i2 expects to report total revenues of $117 million to $120 million for the quarter, down from last quarter and the same quarter last year.
The company expects license revenue to be $25 million to $26 million for the quarter. Loss before taxes is expected to be $85 million to $88 million.
As a result of i2s second quarter losses, Sanjiv Sidhu, founder, chairman and CEO, announced today that the company will begin a restructuring "fairly soon" and will carry out the plan over the next two to three quarters.
The restructuring will include cuts in research & design, sales and marketing and services.
As a result of the restructuring, the company expects to achieve profitability within the next two to three quarters.
"Were not taking small steps here; these are major steps, and we will begin to execute soon," said Bill Beecher, CFO at i2, during a conference call with analysts.
The company is also seeing more shake-ups in its sales division. Philip Crawford, president of i2s Europe, Middle East and Africa [EMEA] division, and Katrina Roche, chief marketing officer, are leaving the company.
Stepping back into the mix is longtime i2 executive Henk Verkou, who will become chairman and acting president for i2 EMEA.
Verkou previously led i2 organizations in Japan and Germany and has served as i2s executive vice president of international business development.
Likewise, Jim Contardi, former i2 senior vice president for worldwide field operations, will assume responsibilities as senior vice president and chief operating officer for i2 EMEA.
While sales across the board suffered, the EMEA region was particularly hard hit, according to Sidhu.
"I do not want to continue to blame the economic condition. That has been proven," said Sidhu during the pre-earnings call. "I continue to believe that we do have an execution problem.
Like any CEO, I dont like to report results like we did today. I wont try to paint a happy picture; the market is indeed challenging," said Sidhu. "But we are planning [for the economic rebound]. We will be prepared for the rebound, and we will make the organization leaner."
Sidhu did not say what products might be affected by the companys restructuring, though he will have more details on July 16, when the company reports its full second quarter results.