I2 Technologies shares plunge in wake of Q1 results
Shares of I2 Technologies Inc. (Nasdaq: ITWO) lost a quarter of their value this morning in extremely heavy trading after the Dallas-based firm issued a series of announcements, including its first-quarter financial report, the upcoming retirement of its CEO and an acquisition.
Shares of i2 were down $6.48, or 25.5%, to $18.98 by 10:45 a.m. ET. Volume was active – at 3 million shares, more than ten times the three-month daily average of around 260,000 shares.
I2, a supply chain management software company, posted non-GAAP diluted earnings per share of $0.16, excluding stock option expense and contract revenue on revenue of $65.6 million, for the quarter ended March 31. GAAP earnings totaled $0.13. Three analysts polled by Thomson First Call were expecting earnings per share of $0.22 on revenue of $64.9 million.
Net income applicable to common stockholders totaled $3.5 million.
CEO Michael McGrath said the firm was disappointed with its software solutions and maintenance revenue as well as its software solutions bookings in the quarter.
Also this morning, i2 announced it has begun a search to replace McGrath, who plans to retire by the end of 2007 when his contract expires. McGrath took the helm as CEO in February 2005.
Separately, the company also announced it has acquired Blue Agave Software Inc., a provider of software application solutions aimed at consumer goods suppliers.
Financial terms were not disclosed but i2 said that it has added a number of Blue Agave employees to its consumer industries team, and intends to continue offering support to Blue Agave customers.
