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by Alan Alper, MA Editorial Staff
Posted on Monday, February 06, 2006 4:33:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Third straight profitable quarter fueled by stringent cost cutting has given the supply chain software company the means to leverage its new composite application architecture to revitalize revenue growth. |
Declaring that "i2 is back," CEO and chairman Michael McGrath told Wall Street analysts late last week that the company's strong fourth-quarter financial results marked the completion of its turnaround, but acknowledged that management still faces challenges in revitalizing overall revenue growth. For the period ended December 31, the Dallas-based supply chain software vendor reported net earnings of $69.4 million, compared with a loss of $2.1 million in the like period of 2004. Revenue for the quarter was $96.6 million, up 25% from the corresponding quarter the year prior, driven primarily by new software license revenue from recently delivered composite applications that ride on its new web services business process management platform. "Software solutions" revenue, in fact, jumped 28% from the prior quarter to $23 million, which was 43% higher than the year-earlier period, McGrath told analysts. The rise in new license revenue offset declines in services and maintenance fees, which plunged 7% and 11% from the year-earlier period to $25.4 million and $25 million, respectively. [Click to continue] |
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