Because of difficult market conditions, business-to-business software company i2 Technologies yesterday said its second-quarter results will be lower than expected. The company predicts a pro forma net loss of approximately 16 cents per share for the second quarter, including a special charge for bad-debt expense of $25 million to $27 million, or 4 cents per share. This special charge was taken primarily as a result of conditions surrounding dot-com and public marketplace customers.
“Market conditions were much more difficult than we had anticipated this quarter — even more difficult than we experienced in the first quarter,” said Greg Brady, CEO of i2. “These conditions prevented us from achieving what we believed were conservative estimates for the quarter.”
I2, Dallas, said its licensing revenue would total $103 million to $107 million for the quarter.
The pro forma net loss excludes a restructuring charge of $33 million to $35 million, or 5 cents per share, as well as other pro forma adjustments, including amortization of intangible assets, equity investment gains and losses and employer taxes on stock option exercises. When final results are reported July 18, the company expects to report a net loss per share of approximately $2.10 to $2.12 per share.
I2 said it expected to book revenues in the area of $235 million to $240 million, down from previously lowered expectations of $275 million to $300 million.
Shortly after the company announced that its second-quarter earnings would fall short, Merrill Lynch cut its intermediate term investment rating on i2 from accumulate to neutral.
