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EXHIBIT 99.1
PRESS RELEASE [i2 LOGO]
i2'S THIRD QUARTER REVENUES GROW 118 PERCENT TO $320 MILLION
License revenues of $202 million evidence strength of i2's marketplace solutions
Operating margin improvement yields $0.12 per share before amortization of
intangibles and non-recurring charges
DALLAS, TEXAS, OCTOBER 17, 2000 - i2 Technologies, Inc. (Nasdaq: ITWO), the
leading provider of marketplace solutions, today reported total revenues for the
Company's third quarter ended September 30, 2000, of $319.5 million, 32 percent
higher than the second quarter 2000 revenues of $242.6 million and 118 percent
greater than total revenues of $146.3 million for the third quarter of 1999.
"Last week, we announced three of the largest contracts in i2's history, with
one new and two existing customers," said Sanjiv Sidhu, chairman and CEO of i2.
"Kmart joins Siemens and Caterpillar to become one of the first three customers
to sign up for i2's New Economy program, designed to help companies aggressively
use e-business solutions to transform their businesses to be more
customer-focused and competitive in the Internet economy."
License revenues of $201.6 million grew 128 percent year-over-year to lead the
Company's growth, against a base of $88.6 million reported for the third quarter
of 1999. "Even if we include Aspect Development's results from last year on a
pro forma basis, our total revenues grew 85 percent and net income grew 127
percent, excluding amortization of intangibles and non-recurring charges,"
stated Bill Beecher, CFO of i2. Non-recurring charges include
acquisition-related expenses and a one-time non-cash settlement.
"i2 is a leader in providing second-generation advanced solutions for e-business
and e-marketplaces. We see tremendous opportunities to continue selling our
industry-leading supply chain management solutions into this under-penetrated
market," added Sidhu. "In addition, we have again expanded our potential market
with new collaborative procurement and multi-enterprise order management
solutions. i2 is uniquely positioned and best able to address the multi-billion
dollar market for multi-enterprise customer order management, based on our
heritage of providing other multi-enterprise process optimization solutions,
like our supply chain solutions."
Operating income grew 176 percent to $38.8 million, compared to $14.1 million in
the same quarter last year, excluding amortization of intangibles and
non-recurring charges, as the Company continued to execute on its strategy of
expanding margins to leverage top-line growth for earnings.
Net income excluding amortization of intangibles and non-recurring charges was
$28.8 million, or $0.12 per fully diluted share, representing 188 percent growth
in normalized earnings and a doubling of EPS compared to $10.0 million, or $0.06
per fully diluted share on the same basis in the third quarter last year. In
October 2000, i2 settled a lawsuit filed by a former employee of i2 regarding
his right to exercise stock options granted to him while he was employed by i2,
prior to i2's initial public offering. The settlement resulted in a one-time,
non-cash charge of $22.4 million, which was accrued for in the quarter ending
September 30, 2000. Including amortization of intangibles and non-recurring
charges, the company reported a net loss of $755.7 million for the quarter,
compared to net income of $5.7 million in the same period last year.
Beecher concluded, "As you can see, it was a very strong quarter for us, with
accelerated growth, increased cash earnings, and an expanded solution set that
opens up a larger market opportunity for us. We believe that i2 is uniquely
suited to address this opportunity successfully."
For the first nine months of 2000, i2 reported top-line growth of 89 percent
with total revenues of $748.4 million, compared to $395.8 million for the first
nine months of 1999. Net income excluding amortization of intangibles and
non-recurring charges was $60.2 million for the first nine months of 2000,
compared to $12.9 million for the first nine months of 1999, representing 365
percent normalized growth.
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i2'S THIRD QUARTER REVENUES GROW 118 PERCENT TO $320 MILLION
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ADDITIONAL HIGHLIGHTS OF THE QUARTER INCLUDE:
ALLIANCES/PARTNERS
i2 and Broadvision, Inc. announced a joint development agreement to deliver a
comprehensive e-commerce solution, integrating i2 TradeMatrix Sell and i2
TradeMatrix Content solutions with the Broadvision suite of e-commerce
applications and relationship management to create a best-of-breed solution for
managing the entire e-commerce value chain.
MetalSite, the leading force in metals e-business solutions, announced a
partnership with i2 to offer collaborative planning applications that will
deliver greater efficiencies to the $900 billion global metals industry supply
chain. The partnership provides for the implementation of i2 TradeMatrix
collaborative planning and advanced order status functionality to be hosted by
MetalSite.
Ariba, i2 and IBM announced an expansion of their B2B alliance through a new
reseller agreement between Ariba and i2 that now allows each company to resell
the others' interoperable B2B solutions. The new agreement between Ariba and i2
adds to reseller agreements in place since March 2000 between each company and
IBM. This flexible approach has already secured more than 25 alliance customer
wins for a variety of private and public e-marketplaces, procurement and supply
chain collaboration implementations.
MARKETPLACES
Citigroup, Enron Broadband Services, i2, S1 Corporation and Wells Fargo &
Company formed FinancialSettlementMatrix.com, Inc. to streamline buying, selling
and facilitating payments in business-to-business (B2B) e-commerce. The new
company plans to connect buyers and sellers in e-marketplaces with payment
processing, credit and other services through multiple participating banks and
financial services companies.
i2 signed independent contracts with three of the world's largest automobile
manufacturers: DaimlerChrysler, Toyota and Volkswagen. The contracts are part of
major efforts at each company to improve business results using private online
marketplaces for collaboration internally and with their trading partners.
i2 and Primavera Systems, Inc., the leading provider of project management,
control and execution software for the Architecture, Engineering and
Construction (AEC) industry, have partnered to develop a comprehensive
marketplace for the construction industry to extend Primavera's AEC industry
e-commerce solution, PrimeContract, to satisfy the broad set of purchase and
project control requirements of the construction industry.
i2 and PurchasePooling.com are creating a Web-based demand aggregator site that
will enable governmental and educational entities to realize significant cost
savings by pooling their purchasing power for large-ticket items. i2 will
provide i2 TradeMatrix solutions and services to make the business-to-government
(B2G) exchange a reality.
Transora, the global B2B e-marketplace for the consumer food products and
services industry, selected the Ariba B2B Commerce Platform and i2 TradeMatrix
solutions to power its worldwide marketplace for food, beverage, and consumer
products.
eASPNet, the first high-tech e-marketplace in greater China, selected i2
TradeMatrix solutions to power its eMarketplace, which will be the region's
largest online community for the high technology, information technology,
consumer packaging and retail segments in Taiwan.
FulfillmentMatrix, a marketplace for physical fulfillment providers and their
trading partners, plus an enabler for e-business enterprises and marketplaces
that require integrated customer order fulfillment services, was announced by
i2.
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i2'S THIRD QUARTER REVENUES GROW 118 PERCENT TO $320 MILLION
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CUSTOMERS
Cypress Semiconductor Corporation purchased i2 TradeMatrix solutions
specifically designed to meet the growing challenges of the semiconductor
industry. These solutions will help Cypress reduce cycle times, offer real-time
customer service, provide product availability and delivery information, and
improve processes within its supply chain cycle.
Allied Worldwide, the global leader in household relocation and logistics
services, will implement a suite of i2 solutions to improve its ability to serve
customers around the world. i2 TradeMatrix solutions will first be implemented
within Allied Worldwide's Logistics Division and later throughout the company.
Fairchild Semiconductor International selected i2 TradeMatrix solutions for
supply chain management to strengthen the company's position as a leading
supplier in the multi-market semiconductor industry.
Sears, Roebuck and Co. selected i2 TradeMatrix solutions including the Service
Assets Management suite of forecasting, assortment and replenishment solutions
to enhance technician productivity and reduce repair parts inventory overstock
for its Home Services business.
CEMEX, the world's largest trader of cement and the world's leading producer of
white cement, selected to deploy i2 TradeMatrix solutions that will transform
CEMEX's supply chain and logistics processes into a highly agile, scalable, high
velocity model that should lead to significant cost reductions.
Caterpillar, the world's leading manufacturer of construction and mining
equipment, diesel and natural gas engines and industrial gas turbines, will
create an e-marketplace using the i2 TradeMatrix platform to link Caterpillar
with its supplier and dealer base to create a high velocity, optimized,
build-to-order environment and help transform Caterpillar's supply chain,
logistics, planning and customer management business processes.
Kmart Corporation has licensed i2's intelligent e-business solutions to
transform its supply chain execution, improve consumer satisfaction and enhance
sales and marketing. The two companies also have formed a strategic relationship
to focus on a next-generation retail solution that will span functions
throughout the value chain.
Siemens AG, global leader in electrical engineering and electronics, signed a
strategic partnership agreement with i2. Siemens will standardize on the i2
TradeMatrix platform and its full suite of e-business solutions for design, buy,
plan, sell, fulfill, and service, as well as i2's content management and
consulting services, for all Siemens manufacturing and sales operations
worldwide.
TECHNOLOGY
i2 announced TradeMatrix Network Open API (application program interface) as an
integral part of its TradeMatrix Network solution. This new program provides a
standard interface to help companies rapidly connect their TradeMatrix
marketplaces to other private and public marketplaces.
i2 introduced its Discovery Content Management Solution Suite, the most
comprehensive set of Web-based tools for publishing, searching and managing
content for electronic marketplaces. This suite includes Discovery Content
Exchange, for publishing and managing marketplace catalog content, and Discovery
Knowledge Management, for searching, matching and shopping online catalogs. i2
also announced its Supplier Network, the world's largest online community of
suppliers.
i2 announced i2 TradeMatrix 5.0, the latest release of i2's marketplace platform
and solution suite. TradeMatrix 5.0 offers the solutions, content and
multi-enterprise platform that will take companies beyond the first-generation
bid/ask marketplace model prevalent today, to a second-generation model that
enables e-marketplaces to model, plan and transact across all participants in a
value chain.
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i2'S THIRD QUARTER REVENUES GROW 118 PERCENT TO $320 MILLION
PAGE 4
ABOUT i2:
i2 is creating real value for its global e-business customers through its i2
TradeMatrix solutions, content and marketplace platform. i2 TradeMatrix allows
businesses to create both private and public marketplaces, while improving the
efficiencies of all participants. i2 provides a wide variety of collaborative
e-business services for both the early stages and the next generation of
e-business adoption, with each service supported by decision optimization,
transaction management and content management solutions. Founded in 1988, i2's
mission is to deliver $75 billion in value to its customers by 2005. i2 is
headquartered in Dallas, has more than 5,000 employees and maintains offices
worldwide. Visit i2 at www.i2.com.
i2 and the i2 logo design are registered trademarks of i2 Technologies, Inc. i2
TradeMatrix and TradeMatrix are trademarks of i2 Technologies, Inc.
CAUTIONARY LANGUAGE
This press release contains forward-looking statements that involve risks and
uncertainties, including the Company's ability to continue to develop and market
its products successfully, to continue its growth, to implement its products to
achieve anticipated results, or to address new markets successfully. For a
discussion of factors which could impact i2's financial results and cause actual
results to differ materially from those in forward-looking statements, please
refer to i2's recent filings with the SEC, particularly the Form 10-K filed
March 22, 2000 and Form 10-Q filed August 14, 2000.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Brent Anderson
i2 Investor Relations
(469) 357-6012
[email protected]
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<PAGE> 5
i2 TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- -------------------------
1999* 2000 1999* 2000
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Revenues:
Software licenses $ 88,596 $ 201,623 $ 242,051 $ 465,451
Services 39,293 77,098 104,388 184,451
Maintenance 18,407 40,802 49,403 98,521
----------- ----------- ----------- -----------
Total revenues 146,296 319,523 395,842 748,423
Costs and expenses:
Cost of software licenses 5,229 18,961 11,821 34,706
Cost of services and maintenance 31,210 67,000 91,183 156,256
Sales and marketing 49,305 110,852 136,127 262,655
Research and development 33,024 60,967 95,106 152,005
General and administrative 13,456 22,947 39,054 60,458
Amortization of intangibles -- 772,107 -- 981,054
In process R&D and acquisition-related expenses 4,248 2,796 4,825 102,115
----------- ----------- ----------- -----------
Total costs and expenses 136,472 1,055,630 378,116 1,749,249
----------- ----------- ----------- -----------
Operating income (loss) 9,824 (736,107) 17,726 (1,000,826)
Other income, net 2,017 7,216 4,419 13,928
Non-cash settlement -- (22,412) -- (22,412)
----------- ----------- ----------- -----------
Income (loss) before income taxes 11,841 (751,303) 22,145 (1,009,310)
Provision for income taxes 6,114 4,408 14,045 15,476
----------- ----------- ----------- -----------
Net income (loss) $ 5,727 $ (755,711) $ 8,100 $(1,024,786)
=========== =========== =========== ===========
Basic and diluted earnings (loss) per common share:
Basic earnings (loss) per common share $ 0.04 $ (3.83) $ 0.05 $ (5.87)
Diluted earnings (loss) per common share $ 0.03 $ (3.83) $ 0.05 $ (5.87)
Weighted average common shares outstanding 151,678 197,540 149,504 174,558
Weighted average diluted common shares outstanding 165,398 197,540 163,418 174,558
EXCLUDING AMORTIZATION OF INTANGIBLES, ACQUISITION-RELATED EXPENSES AND NON-CASH SETTLEMENT:
Net income $ 9,975 $ 28,757 $ 12,925 $ 60,167
Basic and diluted earnings per common share:
Basic earnings per common share $ 0.07 $ 0.15 $ 0.09 $ 0.34
Diluted earnings per common share $ 0.06 $ 0.12 $ 0.08 $ 0.29
Weighted average common shares outstanding 151,678 197,540 149,504 174,558
Weighted average diluted common shares outstanding 165,398 231,403 163,418 204,334
</TABLE>
* 1999 figures reflect i2's results only, before the purchase of Aspect
Development
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i2 TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
December 31, September 30,
1999* 2000
----------- -----------
<S> <C> <C>
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 454,585 $ 504,740
Short-term investments 124,806 219,151
Accounts receivable, net 157,586 263,401
Prepaids and other current assets 26,475 90,966
----------- -----------
Total current assets 763,452 1,078,258
Furniture and equipment, net 50,483 104,752
Deferred income taxes and other assets 33,628 203,715
Intangibles and goodwill 13,986 8,310,984
----------- -----------
Total assets $ 861,549 $ 9,697,709
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,039 $ 41,431
Accrued liabilities 85,757 217,709
Deferred revenue 72,617 163,564
----------- -----------
Total current liabilities 178,413 422,704
Deferred income taxes and other long-term
liabilities 968 71,454
Long-term bank debt 350,000 350,000
----------- -----------
Total liabilities 529,381 844,158
----------- -----------
Stockholders' equity:
Preferred Stock, $0.001 par value, 5,000 shares
authorized,
none issued -- --
Common Stock, $0.00025 par value, 500,000 shares
authorized, 155,412 and 199,856 shares issued
and outstanding, respectively 39 49
Additional paid-in capital 297,879 9,845,350
Accumulated other comprehensive loss (4,126) (5,183)
Retained earnings (accumulated deficit) 38,376 (986,665)
----------- -----------
Total stockholders' equity 332,168 8,853,551
----------- -----------
Total liabilities and stockholders' equity $ 861,549 $ 9,697,709
=========== ===========
</TABLE>
* 1999 figures reflect i2's results only, before the purchase of Aspect
Development
