Supply chain software stalwart i2 Technologies Inc. today reported flat revenue for its second quarter even as its bottom line saw a big boost from a recent legal settlement with SAP.
For the quarter ended June 30, 2008, i2 reported revenue of $64.7 million, compared with $64.9 million in the second quarter of 2007. The company’s software solutions line was a lone bright spot, growing revenue 9% to $12.5 million, up from $11.4 million in the year-prior period. However, software accounts for only about 13% of the company’s sales.
Late last month, i2 announced that it had settled an intellectual property lawsuit against SAP for $83.3 million. Although the one-time payment from SAP occurred on July 28, i2 recorded the gain as “a benefit to the second-quarter operating expenses,” which boosted net income to $81.5 million, compared with $2.3 million last year. i2’s costs and expenses in the quarter reached $60.7 million, down from $61.7 million in Q2 of 2007, leaving the company with an operating expense benefit of $20.6 million. Assets also increased to $307.5 million from $202.1 million.
On a conference call today to discuss the results, CEO Pallab Chatterjee called the outcome of the settlement “a strong validation of the value of our intellectual property.”