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Nasdaq:ITWO
Nasdaq
100
A
leading provider of closed-loop supply chain management solutions, i2 designs
and delivers software that helps customers optimize and synchronize activities
involved in successfully managing supply and demand. i2’s global customer
base consists of some of the world’s market leaders – including seven of
the Fortune global top 10. Founded in 1988 with a commitment to customer
success, i2 remains focused on delivering value by implementing solutions
designed to provide a rapid return on investment.
i2
Reports First Quarter 2006 Results Company Achieves Fourth Straight
Quarter of Profitability
Dallas -- May 4, 2006
i2 Technologies, Inc. (NASDAQ:
ITWO) today announced results for the first quarter 2006.
A summary of first quarter
results:
Total revenue was $64.0
million
Total costs and expenses
were $59.8 million
Net income applicable to
common shareholders was $1.8 million
Diluted earnings per share
(GAAP) were $0.07
Non-GAAP diluted earnings
per share were $0.21 (excluding stock option expense and contract revenue
and contract expense)
Total bookings were $61.6
million, including $9.4 million of software solutions bookings
“In the first quarter, we
recorded our fourth consecutive quarter of profitability while at the same
time implementing strategies to drive future growth,” stated i2 Chief Executive
Officer Michael McGrath. “Equally important, we have made excellent
progress with our new next-generation solutions, which I believe will reshape
the supply chain management market. We will be describing our progress
on these next-generation solutions in detail next week at i2 Planet.”
First Quarter Results
Revenue Detail
Total revenue for the first
quarter was $64.0 million, as compared to $81.9 million in the first quarter
of 2005. Total revenue in the first quarter of 2005 included a one-time
customer settlement of $8.5 million as well as contract revenue of $3.1
million.
i2 had total first quarter
software solutions revenue, which includes core license revenue, recurring
license revenue as well as fees received to develop the licensed functionality,
of $16.9 million. This compares to $25.4 million of software solutions
revenue in the first quarter of 2005. Excluding the $8.5 million
customer settlement recorded in first quarter 2005, software solutions
revenue was flat year-over-year.
Services revenue in the first
quarter was $23.9 million, which compares to first quarter 2005 services
revenue of $27.6 million. Services revenue includes fees received from
arrangements to customize or enhance previously purchased licensed software.
Services revenue also includes reimbursable expenses.
First quarter maintenance
revenue was $23.2 million, compared to $25.8 million in the first quarter
of 2005.
Costs and Expenses
Total costs and expenses
for the first quarter of 2006 were $59.8 million, including $3.7 million
in stock option expense. This compares to $101.3 million in the first quarter
of 2005. Costs and expenses in the year-ago quarter included $23.6
million of restructuring and non-operating legal expenses. The year-over-year
reductions in operating expenses were across virtually all areas of the
cost structure and are a realization of the restructuring efforts implemented
in 2005.
Net Income
The company reported first
quarter 2006 net income applicable to common shareholders of $1.8 million
or $0.07 per fully diluted share.
Non-GAAP Earnings Per Share
The company provides non-GAAP
financial measures to assist shareholders with the analysis of financial
and business trends related to the company’s operations. These calculations
are not in accordance with, or an alternative for, generally accepted accounting
principles (GAAP) and may be different from non-GAAP measures presented
by other companies, but are used as a tool by management to measure the
effectiveness of i2’s business.
Non-GAAP diluted earnings
per share in the first quarter 2006 were $0.21, compared to a loss of ($1.52)
per diluted share in the comparable period last year on a non-GAAP basis.
Non-GAAP diluted earnings per share exclude stock option expense and the
net effect of contract revenue and contract expense. |
