Stronger-than-expected results for the third quarter and plans for a 2-for-1 stock split failed to lift shares of i2 Technologies, Inc. (Nasdaq: ITWO), which slipped 9 1/16 to 171 in the first few minutes of trading Wednesday. Stocks opened lower across the board, driven by weak third-quarter results from Intel Corp. and IBM.
i2, a Dallas, Texas-based maker of e-commerce software, said revenue for the quarter advanced 118 percent from a year earlier to $320 million, due to $202 million in license revenue.
Last week, i2 said Kmart Corp., Siemens and Caterpillar became the first three customers for its ‘New Economy’ program, a plan designed to help companies compete in the Internet economy.
Income before amortization and charges rose to $28.8 million, or 12 cents per fully diluted share, from $10.0 million, or 6 cents, in the year-earlier quarter. Analysts had expected the company to earn 10 cents per share before items.
Latest-quarter results included a $22.4 million non-cash charge for settling a lawsuit filed by a former employee over the right to exercise stock options, resulting in a net loss of $755.7 million, compared with income of $5.7 million in the same quarter last year.
The stock split, in the form of a 100 percent stock dividend, will be paid on or about December 4th to shareholders of record November 28th.
San Diego, California-based i2 last week announced an alliance with BroadVisionaimed at developing a business-to-business e-commerce marketplace. The two firms will jointly market the new products to companies that want to buy, sell or trade items online.