LA QUINTA, Calif. -- It's amazing how fast buzzwords make the rounds on Wall Street.
In recent weeks, a lack of
"visibility" about how the economy is affecting technology companies has sent executives scrambling to tone down their guidance. This visibility problem has suddenly become a key focus for Wall Street.
CEO Sanjiv Sidhu played to that new fascination in a presentation at the
Goldman Sachs Technology Symposium
"You need forward visibility," Sidhu told the standing-room-only crowd of well-healed institutional investors gathered here. "That's what i2 gives you."
i2 makes supply-chain software that helps manufacturers build things more efficiently, as well as gauge demand for their products more accurately. In uncertain times, Sidhu said, it's exactly this kind of software that companies are looking for.
"If you see a curve coming
in your business, you need to decide what to do," Sidhu said. "You need forward visibility and variability. That way, the moment there's a change in demand, it's felt throughout the supply chain faster and much more strongly."
He said corporations' thirst for that kind of knowledge has only increased in the last three to four months, something that has contributed to his company's bullish outlook lately, which, after all, is exactly the kind of visibility that Wall Street is looking for.
But investors have shown concerns about i2's visibility.
Earlier this month, i2's stock tumbled after
talked of spending cuts at some large manufacturers, i2's customer base.