I2 Technologies Inc. announced yesterday that it will lay off some of its 4,800 workers and post a second-quarter loss of more than US$80 million, and that it's considering taking a $710 million charge against tax assets.
Details will be disclosed during i2's quarterly earnings call July 16, David Becker, i2's senior vice president for finance, said today.
According to a statement, the Dallas-based maker of supply chain management software expects a pretax loss of between $85 million and $88 million for the quarter, based on revenue of $117 million to $120 million.
The company could also take a $710 million charge that would drive the loss up to about $798 million. However, Becker said the company has not yet determined whether it will take that action. The charge would be against tax losses compiled over the last three years as a result of employees exercising their stock options back when share prices were high, among other things.
Becker said that "constrained spending" by i2's customers directly contributed to the losses. The company has many customers who have also been hit by the economic downturn, further adding to its troubled economic picture.
Despite its difficulties, the company aims to return to break-even status in three or four quarters, Becker said.
I2's stock fell 13 cents to $1.37 per share in early afternoon trading. St. Louis-based A.G. Edwards & Sons Inc. and Dallas-based SWS Securities Inc. have both downgraded i2 shares to a Sell rating.