Exhibit 99.1
i2 Reports Second Quarter 2006 Results
Company achieves fifth straight quarter of profitability accompanied by increased software solutions bookings and cash flow from operations of $20 million
DALLAS – August 3, 2006 – i2 Technologies, Inc. (NASDAQ: ITWO) today announced results for the second quarter 2006.
A summary of second quarter results:
• | Total revenue was $64.7 million |
• | Total costs and expenses were $59.1 million |
• | Net income applicable to common stockholders was $3.0 million |
• | Diluted earnings per share (GAAP) were $0.12 |
• | Non-GAAP diluted earnings per share were $0.25 (excluding stock option expense and contract revenue and contract expense) |
• | Cash flow from operations was $20.1 million |
“We had significant bookings this quarter with $75.4 million in total bookings, including $14.9 million of software solutions and $10.5 million of Agile Business Process Platform technology bookings, which is part of the strategy we announced last year to broaden the use of this platform technology to other software companies and not just i2,” stated i2 Chief Executive Officer Michael McGrath. “Software solutions bookings increased 71 percent over the second quarter of last year and almost 60 percent over last quarter. Our new generation solutions, which make up most of these bookings, are gaining a lot of momentum in the marketplace. We added some new key customers and had some major competitive wins this quarter based on these new solutions. Our progress was also demonstrated by our $20.1 million in positive operating cash flow in the second quarter.”
Second Quarter Results
Revenue Detail
Total revenue for the second quarter was $64.7 million, as compared to $91.9 million in the second quarter of 2005. Total revenue in the second quarter of 2005 included contract revenue of $15.3 million. Total revenue in the second quarter increased $0.6 million from the first quarter 2006.
i2 had total second quarter software solutions revenue, which includes core license revenue, recurring license revenue as well as fees received to develop the licensed functionality, of $15.4 million. This compares to $23.5 million of software solutions revenue in the second quarter of 2005 and $16.9 million in the first quarter of 2006.
Services revenue in the second quarter was $26.1 million. This compares to $27.5 million of services revenue in the second quarter of 2005 and $23.9 million in the first quarter of 2006. Services revenue includes fees received from arrangements to customize or enhance previously purchased licensed software. Services revenue also includes reimbursable expenses.
Second quarter maintenance revenue was $23.1 million, compared to $25.5 million in the second quarter of 2005 and $23.2 million in the first quarter of 2006.
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i2 Reports Second Quarter 2006 Results
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Costs and Expenses
Total costs and expenses for the second quarter of 2006 were $59.1 million, including $3.5 million in stock option expense. This compares to $67.3 million in the second quarter of 2005 and $59.8 million in the first quarter of 2006.
Net Income
The company reported second quarter 2006 net income applicable to common stockholders of $3.0 million or $0.12 per diluted share. This compares to $28.0 million or $1.18 per diluted share in income from continuing operations, including preferred stock dividend and accretion of discount, in the second quarter of 2005 and $1.8 million or $0.07 per diluted share in the first quarter of 2006.
First Half 2006 Results
For the six months ended June 30, 2006, total revenues were $128.7 million as compared to $173.8 million for the same period in 2005. Total revenue in the first half of 2005 included contract revenue of $18.4 million.
Software solutions revenue was $32.3 million for the six months ended 2006 compared to $48.9 million in the first half of 2005. Services revenue was $50.0 million in the first half of 2006 compared to $55.2 million in the first half of 2005. Maintenance revenue was $46.3 million in the first half of 2006 compared to $51.3 million in the comparable period in 2005.
Total costs and expenses for the six months ended June 30, 2006 were $118.9 million as compared to $168.6 million in the first half of 2005.
The company reported net income applicable to common stockholders of $4.8 million or $0.19 per diluted share for the six months ended June 30, 2006. This compares to $1.5 million or $0.07 per diluted share in income from continuing operations, including preferred stock dividend and accretion of discount, in the comparable period in 2005.
Non-GAAP Earnings Per Share
The company provides non-GAAP financial measures to assist stockholders with the analysis of financial and business trends related to the company’s operations. These calculations are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies, but are used as a tool by management to measure the effectiveness of i2’s business.
Non-GAAP diluted earnings per share in the second quarter of 2006 were $0.25, compared to $0.60 per diluted share from continuing operations, including preferred stock dividend and accretion of discount, in the comparable period last year on a non-GAAP basis. Non-GAAP diluted earnings per share excludes stock option expense and the net effect of contract revenue and contract expense.
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i2 Reports Second Quarter 2006 Results
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Contract revenue is the result of the recognition of certain revenue carried on i2’s balance sheet as a portion of deferred revenue and is a result of the company’s 2003 financial restatement. The timing of the recognition of deferred contract revenue is difficult to predict and is not typically associated with current business or cash collections. The company did not recognize a material amount of contract revenue or expense during the second quarter of 2006. The remaining deferred contract revenue balance as of June 30, 2006 was $7.5 million.
Quarter 06-30-06 | Quarter 06-30-05* | Year-to-Date 06-30-06 | Year-to-Date 06-30-05* | ||||||||||
GAAP diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 0.12 | $ | 1.18 | $ | 0.19 | $ | 0.07 | |||||
Add: Stock option expense | $ | 0.13 | $ | 0.00 | $ | 0.27 | $ | 0.00 | |||||
Less: Effect of contract revenue and expense | $ | 0.00 | $ | 0.58 | $ | 0.00 | $ | 0.71 | |||||
Non-GAAP diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 0.25 | $ | 0.60 | $ | 0.46 | ($0.64 | ) |
* | 2005 amounts exclude results from discontinued operations |
Please see the attached schedule for a reconciliation of GAAP to non-GAAP financial measures.
Other Financial Information
On June 30, 2006, i2’s total cash (including restricted cash) was $133.6 million. Total debt at the end of the second quarter was $105.4 million, which included $83.5 million of long-term debt (which represents the $86.3 million face value of the company’s 5 percent senior convertible notes less the unamortized discount on the notes) and $21.9 million of short-term debt.
The company generated cash flow from operations of $20.1 million in the second quarter of 2006, bringing the year-to-date cash flow from operations to $12.1 million.
Full Year 2006 Outlook
The company is reiterating its current full year outlook for 2006. For the year, operating revenue (total revenue less contract revenue) is expected to be below the comparable 2005 amount. Additionally, the company expects non-GAAP earnings per share for full year 2006 (excluding stock option expense and the net effect of contract revenue and contract expense) of $1.00 to $1.20 per diluted share.
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i2 Reports Second Quarter 2006 Results
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The company’s statements regarding future financial performance are based on current expectations for bookings, cash collections, revenue and expense. This includes, among other matters, the company achieving projected revenue from software solutions and platform technology bookings, achieving sequential growth in services revenue, maintaining strict cost controls, and incurring non-operating legal expenses at or below second quarter levels. The company’s statements regarding future financial performance are forward-looking. Actual results may differ materially. See “i2 Cautionary Language” below.
Earnings Conference Call and Webcast Information
The i2 management team will host a live conference call with investors today, August 3 at 10 a.m. EDT to discuss the second quarter 2006 financial results. Investors and other interested parties may access the call and accompanying slide presentation via webcast through the company’s Web site at www.i2.com/investor.
An audio replay of the conference call will be available for approximately 24 hours following the call. To access the replay, dial (800) 475-6701 (USA) or (320) 365-3844 (International) and enter access code 835997. The webcast will also be archived via the company’s Web site at http://www.i2.com/investor.
About i2
i2 helps business leaders make better supply chain decisions. i2’s flexible new-generation solutions are designed to synchronize demand and supply across ever-changing global business networks. i2’s innovative supply chain management tools and services are pervasive in a wide cross-section of industries; 20 of the AMR Research Top 25 Global Supply Chains belong to i2 customers. Learn more at www.i2.com.
i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.
i2 Cautionary Language
This press release contains forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding i2’s outlook for 2006 operating revenue and non-GAAP earnings per share, as well as the company’s investment in revenue generating areas of its business. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. 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 Quarterly Report on Form 10-Q filed May 10, 2006 and the Annual Report on Form 10-K filed March 15, 2006. i2 assumes no obligation to update the forward-looking information contained in this news release.
For More Information Contact: | ||
Tom Ward | Beth Elkin | |
i2 Investor Relations | i2 Corporate Communications | |
469-357-3854 | 469-357-4225 | |
tom_ward@i2.com | beth_elkin@i2.com |
i2 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
June 30, 2006 | December 31, 2005 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 128,600 | $ | 112,882 | ||||
Restricted cash | 5,035 | 4,773 | ||||||
Accounts receivable, net | 22,845 | 25,887 | ||||||
Deferred contract costs | 311 | 311 | ||||||
Other current assets | 16,172 | 19,219 | ||||||
Total current assets | 172,963 | 163,072 | ||||||
Premises and equipment, net | 12,656 | 14,056 | ||||||
Intangible assets, net | 4,843 | 4,906 | ||||||
Goodwill | 14,760 | 14,440 | ||||||
Non-current deferred tax asset | 5,766 | 5,971 | ||||||
Total assets | $ | 210,988 | $ | 202,445 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,643 | $ | 11,766 | ||||
Accrued liabilities | 26,469 | 36,925 | ||||||
Accrued compensation and related expenses | 19,225 | 23,847 | ||||||
Deferred revenue | 103,487 | 99,870 | ||||||
Current portion of long-term debt | 21,848 | 25,000 | ||||||
Total current liabilities | 181,672 | 197,408 | ||||||
Total long-term debt, net | 83,507 | 75,691 | ||||||
Total liabilities | 265,179 | 273,099 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ deficit: | ||||||||
Preferred Stock, $0.001 par value, 5,000 shares authorized, none issued and outstanding | — | — | ||||||
Series A junior participating preferred stock, $0.001 par value, 2,000 shares authorized, none issued and outstanding | — | — | ||||||
Series B 2.5% convertible preferred stock, $1,000 par value, 150 shares authorized, 104 issued and outstanding | 101,472 | 100,065 | ||||||
Common stock, $0.00025 par value, 2,000,000 shares authorized, 20,778 shares issued and outstanding | 5 | 5 | ||||||
Warrants for common stock | 3,125 | 3,125 | ||||||
Additional paid-in capital | 10,428,348 | 10,420,262 | ||||||
Accumulated other comprehensive income (loss) | 1,045 | (1,147 | ) | |||||
Accumulated deficit | (10,588,186 | ) | (10,592,964 | ) | ||||
Net stockholders’ deficit | (54,191 | ) | (70,654 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 210,988 | $ | 202,445 | ||||
i2 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Revenues: | ||||||||||||||||
Software solutions | $ | 15,388 | $ | 23,489 | $ | 32,310 | $ | 48,898 | ||||||||
Services | 26,143 | 27,534 | 50,017 | 55,161 | ||||||||||||
Maintenance | 23,120 | 25,496 | 46,335 | 51,314 | ||||||||||||
Contract | 33 | 15,343 | 66 | 18,400 | ||||||||||||
Total revenues | 64,684 | 91,862 | 128,728 | 173,773 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenues: | ||||||||||||||||
Software solutions | 2,447 | 3,459 | 5,850 | 8,386 | ||||||||||||
Services and maintenance | 24,105 | 26,656 | 47,440 | 55,341 | ||||||||||||
Contract | — | 1,575 | — | 1,575 | ||||||||||||
Sales and marketing | 12,353 | 15,155 | 23,307 | 33,523 | ||||||||||||
Research and development | 8,579 | 9,085 | 17,277 | 20,885 | ||||||||||||
General and administrative | 11,703 | 11,592 | 25,158 | 37,235 | ||||||||||||
Restructuring charges and adjustments | (95 | ) | (235 | ) | (145 | ) | 11,613 | |||||||||
Total costs and expenses | 59,092 | 67,287 | 118,887 | 168,558 | ||||||||||||
Operating income | 5,592 | 24,575 | 9,841 | 5,215 | ||||||||||||
Non-operating (expense) income, net: | ||||||||||||||||
Realized gains on investments, net | — | 11,000 | 591 | 10,697 | ||||||||||||
Other expense, net | (510 | ) | (5,021 | ) | (944 | ) | (9,478 | ) | ||||||||
Total non-operating (expense) income, net | (510 | ) | 5,979 | (353 | ) | 1,219 | ||||||||||
Income before income taxes | 5,082 | 30,554 | 9,488 | 6,434 | ||||||||||||
Income tax expense | 1,297 | 1,825 | 3,311 | 3,407 | ||||||||||||
Income from continuing operations | 3,785 | 28,729 | �� | 6,177 | 3,027 | |||||||||||
Income from discontinued operations, net of taxes | — | 3,496 | — | 4,706 | ||||||||||||
Net income | $ | 3,785 | $ | 32,225 | $ | 6,177 | $ | 7,733 | ||||||||
Preferred stock dividend and accretion of discount | 770 | 749 | 1,399 | 1,492 | ||||||||||||
Net income applicable to common stockholders | $ | 3,015 | $ | 31,476 | $ | 4,778 | $ | 6,241 | ||||||||
Net income per common share applicable to common stockholders: | ||||||||||||||||
Total: | ||||||||||||||||
Basic | $ | 0.12 | $ | 1.36 | $ | 0.19 | $ | 0.27 | ||||||||
Diluted | $ | 0.12 | $ | 1.33 | $ | 0.19 | $ | 0.26 | ||||||||
Discontinued operations | ||||||||||||||||
Basic | $ | — | $ | 0.15 | $ | — | $ | 0.20 | ||||||||
Diluted | $ | — | $ | 0.15 | $ | — | $ | 0.19 | ||||||||
Continuing operations including preferred stock dividend and accretion of discount | ||||||||||||||||
Basic | $ | 0.12 | $ | 1.21 | $ | 0.19 | $ | 0.07 | ||||||||
Diluted | $ | 0.12 | $ | 1.18 | $ | 0.19 | $ | 0.07 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 25,247 | 23,160 | 25,221 | 23,077 | ||||||||||||
Diluted | 25,699 | 23,638 | 25,738 | 23,610 |
i2 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30, | ||||||||
2006 | 2005 | |||||||
(unaudited) | (unaudited) | |||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income | $ | 6,177 | $ | 7,733 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 3,695 | 3,959 | ||||||
Stock option expense | 7,104 | — | ||||||
Amortization of deferred compensation | 228 | 457 | ||||||
Gain on extinguishment of debt | (3 | ) | — | |||||
Gain on sale of securities | (501 | ) | (11,000 | ) | ||||
(Gain) loss on disposal of equipment | (29 | ) | 745 | |||||
Provision for bad debts charged to costs and expenses | 64 | 121 | ||||||
Deferred income taxes | 549 | 253 | ||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||||||||
Accounts receivable, net | 3,195 | 8,848 | ||||||
Deferred contract costs | — | 1,580 | ||||||
Other current assets | 2,893 | 2,841 | ||||||
Accounts payable | (1,035 | ) | (1,858 | ) | ||||
Accrued liabilities | (10,237 | ) | (912 | ) | ||||
Accrued compensation and related expenses | (4,463 | ) | (4,129 | ) | ||||
Deferred revenue | 4,475 | (17,617 | ) | |||||
Net cash provided by (used in) operating activities | 12,113 | (8,979 | ) | |||||
Cash flows used in investing activities: | ||||||||
Restrictions (added to) released from cash | (262 | ) | 2,097 | |||||
Purchases of premises and equipment | (1,267 | ) | (1,527 | ) | ||||
Proceeds from sale of premises and equipment | 141 | — | ||||||
Purchases of short-term investments | — | (39,200 | ) | |||||
Proceeds from sale of short-term investments | — | 16,850 | ||||||
Proceeds from sale of securities | 501 | 11,000 | ||||||
Business acquisition | (569 | ) | — | |||||
Purchases of long-term investments | — | (500 | ) | |||||
Net cash used in investing activities | (1,456 | ) | (11,280 | ) | ||||
Cash flows provided by financing activities: | ||||||||
Repurchase of debt | (3,149 | ) | — | |||||
Proceeds from sale of convertible debt | 7,500 | — | ||||||
Payment of debt issuance costs | (483 | ) | — | |||||
Net proceeds from common stock issuance from options and employee stock purchase plans | 754 | 337 | ||||||
Proceeds from sale of common stock, net of issuance costs | — | 14,950 | ||||||
Net cash provided by financing activities | 4,622 | 15,287 | ||||||
Effect of exchange rates on cash | 439 | (2,536 | ) | |||||
Net change in cash and cash equivalents | 15,718 | (7,508 | ) | |||||
Cash and cash equivalents at beginning of period | 112,882 | 133,273 | ||||||
Cash and cash equivalents at end of period | $ | 128,600 | $ | 125,765 | ||||
Supplemental cash flow information | ||||||||
Interest paid | $ | 2,688 | $ | 8,312 | ||||
Income taxes paid (net of refunds received) | $ | 2,587 | $ | 3,457 | ||||
Schedule of non-cash financing activities | ||||||||
Preferred stock dividend and accretion of discount | $ | 1,399 | $ | 1,492 |
i2 TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
($ in thousands, except per share data)
Q2 2006 | ||||||||||||||||
GAAP Results | Net Contract Revenue | Stock Option Expense | Non-GAAP Results | |||||||||||||
Revenue | $ | 64,684 | $ | (33 | ) | $ | — | $ | 64,651 | |||||||
Costs and expenses | 59,092 | — | (3,452 | ) | 55,640 | |||||||||||
Operating income | 5,592 | (33 | ) | 3,452 | 9,011 | |||||||||||
Operating margin | 8.6 | % | 13.9 | % | ||||||||||||
Non-operating expense | 510 | — | — | 510 | ||||||||||||
Pre-tax income | 5,082 | (33 | ) | 3,452 | 8,501 | |||||||||||
Less: Income tax expense (1) | 1,297 | — | — | 1,297 | ||||||||||||
Less: Preferred dividend and accretion of discount | 770 | — | — | 770 | ||||||||||||
Net income from continuing operations including preferred stock dividend and accretion of discount | $ | 3,015 | $ | (33 | ) | $ | 3,452 | $ | 6,434 | |||||||
Diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 0.12 | $ | (0.00 | ) | $ | 0.13 | $ | 0.25 | |||||||
Q2 2005 | ||||||||||||||||
GAAP Results | Net Contract Revenue | Stock Option Expense | Non-GAAP Results | |||||||||||||
Revenue | $ | 91,862 | $ | (15,343 | ) | $ | — | $ | 76,519 | |||||||
Costs and expenses | 67,287 | (1,575 | ) | — | 65,712 | |||||||||||
Operating income | 24,575 | (13,768 | ) | — | 10,807 | |||||||||||
Operating margin | 26.8 | % | 14.1 | % | ||||||||||||
Non-operating income | 5,979 | — | — | 5,979 | ||||||||||||
Pre-tax income | 30,554 | (13,768 | ) | — | 16,786 | |||||||||||
Less: Income tax expense (1) | 1,825 | — | — | 1,825 | ||||||||||||
Income from continuing operations | 28,729 | (13,768 | ) | — | 14,961 | |||||||||||
Add: Income from discontinued operations, net | 3,496 | — | — | 3,496 | ||||||||||||
Less: Preferred dividend and accretion of discount | 749 | — | — | 749 | ||||||||||||
Net income applicable to common stockholders | $ | 31,476 | $ | (13,768 | ) | $ | — | $ | 17,708 | |||||||
Less: Income from discontinued operations, net | 3,496 | — | — | 3,496 | ||||||||||||
Net income from continuing operations including preferred stock dividend and accretion of discount | $ | 27,980 | $ | (13,768 | ) | $ | — | $ | 14,212 | |||||||
Diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 1.18 | $ | (0.58 | ) | $ | — | $ | 0.60 |
(1) | Adjustments to the company’s GAAP results do not include a tax effect due to the company’s current tax position |
i2 TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
($ in thousands, except per share data)
YTD 2006 | ||||||||||||||||
GAAP Results | Net Contract Revenue | Stock Option Expense | Non-GAAP Results | |||||||||||||
Revenue | $ | 128,728 | $ | (66 | ) | $ | — | $ | 128,662 | |||||||
Costs and expenses | 118,887 | — | (7,104 | ) | 111,783 | |||||||||||
Operating income | 9,841 | (66 | ) | 7,104 | 16,879 | |||||||||||
Operating margin | 7.6 | % | 13.1 | % | ||||||||||||
Non-operating expense | 353 | — | — | 353 | ||||||||||||
Pre-tax income | 9,488 | (66 | ) | 7,104 | 16,526 | |||||||||||
Less: Income tax expense (1) | 3,311 | — | — | 3,311 | ||||||||||||
Less: Preferred dividend and accretion of discount | 1,399 | — | — | 1,399 | ||||||||||||
Net income from continuing operations including preferred stock dividend and accretion of discount | $ | 4,778 | $ | (66 | ) | $ | 7,104 | $ | 11,816 | |||||||
Diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 0.19 | $ | (0.00 | ) | $ | 0.27 | $ | 0.46 | |||||||
YTD 2005 | ||||||||||||||||
GAAP Results | Net Contract Revenue | Stock Option Expense | Non-GAAP Results | |||||||||||||
Revenue | $ | 173,773 | $ | (18,400 | ) | $ | — | $ | 155,373 | |||||||
Costs and expenses | 168,558 | (1,575 | ) | — | 166,983 | |||||||||||
Operating income | 5,215 | (16,825 | ) | — | (11,610 | ) | ||||||||||
Operating margin | 3.0 | % | (7.5 | %) | ||||||||||||
Non-operating income | 1,219 | — | — | 1,219 | ||||||||||||
Pre-tax income | 6,434 | (16,825 | ) | — | (10,391 | ) | ||||||||||
Less: Income tax expense (1) | 3,407 | — | — | 3,407 | ||||||||||||
Income from continuing operations | 3,027 | (16,825 | ) | — | (13,798 | ) | ||||||||||
Add: Income from discontinued operations, net | 4,706 | — | — | 4,706 | ||||||||||||
Less: Preferred dividend and accretion of discount | 1,492 | — | — | 1,492 | ||||||||||||
Net income applicable to common stockholders | $ | 6,241 | $ | (16,825 | ) | $ | — | $ | (10,584 | ) | ||||||
Less: Income from discontinued operations, net | 4,706 | — | — | 4,706 | ||||||||||||
Net income from continuing operations including preferred stock dividend and accretion of discount | $ | 1,535 | $ | (16,825 | ) | $ | — | $ | (15,290 | ) | ||||||
Diluted EPS from continuing operations including preferred stock dividend and accretion of discount | $ | 0.07 | $ | (0.71 | ) | $ | — | $ | (0.64 | ) |
(1) | Adjustments to the company’s GAAP results do not include a tax effect due to the company’s current tax position |
i2 TECHNOLOGIES, INC.
KEY PERFORMANCE INDICATORS
(unaudited)
2Q 05 | 3Q 05 | 4Q 05 | 1Q 06 | 2Q 06 | ||||||||||||||||
Software solutions bookings ($ in millions) (1) | $ | 8.7 | $ | 4.6 | $ | 11.8 | $ | 9.4 | $ | 14.9 | ||||||||||
Platform technology bookings ($ in millions) | $ | 10.0 | $ | — | $ | — | $ | — | $ | 10.5 | ||||||||||
Total bookings ($ in millions) (2) | N/A | N/A | $ | 81.4 | $ | 61.6 | $ | 75.4 | ||||||||||||
Total revenue recognized by region | ||||||||||||||||||||
Greater APAC | 20 | % | 20 | % | 20 | % | 21 | % | 23 | % | ||||||||||
EMEA | 32 | % | 21 | % | 13 | % | 19 | % | 18 | % | ||||||||||
Americas | 48 | % | 59 | % | 67 | % | 60 | % | 59 | % | ||||||||||
Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Software solutions transactions recognized > $1M | 3 | 1 | 3 | 3 | 3 | |||||||||||||||
Average amount recognized (in $ thousands) | $ | 211 | $ | 279 | $ | 486 | $ | 244 | $ | 223 | ||||||||||
Deferred contract costs (in $ millions) | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||||
Deferred revenue - contract (in $ millions) | $ | 31.8 | $ | 30.8 | $ | 7.6 | $ | 7.6 | $ | 7.5 | ||||||||||
Deferred revenue - other | $ | 116.5 | $ | 99.4 | $ | 92.3 | $ | 86.1 | $ | 96.0 | ||||||||||
Total deferred revenue | $ | 148.3 | $ | 130.2 | $ | 99.9 | $ | 93.7 | $ | 103.5 | ||||||||||
Days sales outstanding | 26 | 31 | 32 | 32 | 32 | |||||||||||||||
Total headcount | 1,345 | 1,268 | 1,257 | 1,259 | 1,277 | |||||||||||||||
Direct sales representatives | 43 | 40 | 37 | 42 | 44 |
1. | Software solutions bookings includes bookings for recurring transactions, beginning in the first quarter of 2006. |
2. | Total bookings represents potential future revenue that was sold each quarter, including platform technology bookings |