Dallas April 17, 2002 Supply chain software provider i2 this week got a new CEO and reported a net loss for its latest fiscal quarter.
Sanjiv Sidhu, i2's founder and chairman of the board, reassumed the role of chief executive officer on Monday, taking back the post that he had ceded last year to Greg Brady. Brady resigned as CEO but will remain on i2's board.
Brady, who had been with i2 since 1994, said in a statement that the resignation was "for personal reasons," but i2 this week also reported a pro forma first quarter loss of $31.5 million, compared with a pro forma profit of $7.5 million for the year-ago period.
Total revenues for the first quarter of 2002 were $168 million, compared to $364 million in the same period last year. License revenues for the first quarter 2002 were $59 million, compared to $211 million in the year-ago period.
Those figures to a large extent have been mirrored at other enterprise software companies, given the economic downturn and slowdown in technology spending over the past 18 months. But Sidhu, speaking in a teleconference to discuss the company's financial results, admitted that i2 faced issues beyond the downturn.
"Despite the economy, we could have, and should have done better," Sidhu said. The problem is not with i2's vision or strategy, Sidhu said, but with the company's execution. The new CEO said that the company, which recently has gone through a major restructuring, had become too internally focused and would now refocus on customers and competitors.
For example, the company will expend greater efforts to ensure that current customers derive anticipated benefits from their investments in i2 solutions, according to Sidhu. "We are taking steps to improve our execution and strengthen the company for the long term," Sidhu said in an i2 statement.
"However," Sidhu went on to caution, "it may take more than a couple of quarters for these changes to drive improved top- and bottom-line results."
In announcing its results, i2 pointed to several customers that went live with the company's solutions over the past quarter, including Bell Helicopter, Bethlehem Steel, Con-Way Logistics, Motorola, Samsung and Texas Instruments.
Working with Sidhu to manage the operations of the company will be Sam Nakane, who was recently named chief operating officer. Nakane, who has managed global business operations at IBM, SAP and PwC, mostly recently headed i2's Japan operations.
In a separate move, i2 announced that Tom Cooper, executive vice president of i2 and president of Americas sales, has decided to leave the company but will stay in his position while the company develops a transition plan.