Date:30/10/2004 URL: http://www.thehindubusinessline.com/2004/10/30/stories/2004103001000700.htm

Back i2 Tech Q3 income down to $111 m

Our Bureau

Bangalore , Oct. 29

I2 TECHNOLOGIES Inc reported revenues of $111 million for the third quarter ended September 30, compared to $117 million recorded during the third quarter 2003. While licence revenue stood at $17 million, development services revenue amounted to $8 million.

According to a company release, contract revenue at $29 million for the quarter, down from $31million in the same quarter last year, reflects amounts deferred as a result of the company's July 2003 restatement and is not typically associated with the current business and cash collections.

Net income applicable to stockholders for the third quarter totalled $17 million ($7 m).

Total costs and operating expenses were $90 million, which included approximately $3 million of legal expenses related to the class action and derivative litigation settlement and the ongoing governmental investigations as well as $2 million of costs associated with the contract revenue recognised.

In addition, there was a reduction to the company's restructuring accrual of approximately $7,00,000.

Customer wins for the quarter include General Motors and Kia Motors America, South Africa's AngloGold and China's BAO Steel, Avnet, Galileo Avionica, and Mexico-based Distribuidora Flexi.

"We continue to make progress toward our goals of achieving operating profitability and long-term growth," Mr Sanjiv Sidhu, CEO, i2, was quoted as saying in a release.

Cash and investments decreased by $64 million. i2 finished the quarter with $281 million in total cash and investments.

The company used approximately $37 million of cash for the repurchase of $40 million in aggregate principal amount of the i2's outstanding convertible debt during the quarter.