i2 Meets Expected Loss, but Revenue Short of Estimates

Postponed orders after Sept. 11 really hit the supply chain software maker's quarter.
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Supply-chain software maker

i2 Technologies

(ITWO)

posted a quarterly loss in line with analysts' expectations, but which came up short on revenue results.

The company said the Sept. 11 terrorist attacks on the U.S. worsened an already deteriorating business environment.

The company said, excluding a $4.7 billion noncash charge for acquisitions, it lost $55.3 million, or 13 cents a share on $194 million in revenue. Analysts were expecting a loss of 13 cents a share on $214 million in revenue, according to Thomson Financial/First Call. Including all charges, the company lost $13.25 a share.

The firm, which makes software to help manufacturing companies anticipate and react to the demands of their customers, said it was able to hit its earnings number, despite slower sales, because of tighter cost controls.

"We faced extremely challenging market conditions throughout the third quarter," said Greg Brady, CEO, in a statement. "The attacks on September 11th further compounded the recession-like environment we are already experiencing, causing customers to postpone or cancel projects and disrupting sales cycles."

The company's big write-off was largely related to the decreased value of its acquisition of Aspect Development in March 2000 for $9.3 billion in stock.

Prior to announcing its results, i2's shares traded up 5 cents, or 0.9%, to close at $5.69. After it released its results, shares dropped to $5.15 on Instinet.