E-business software company i2 (ITWO) was up 14.2% in late morning following a warning it would post first-quarter earnings of about 2 cents a share, below analysts' expectations of 5 cents and the year-ago earnings of 4 cents.

The company also said it was planning cost-reducing measures that include cutting 10% of its workforce, and said it will take a second-quarter charge for the restructuring. i2 blamed the drop in profits on economic conditions.

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