I2 Expects Loss In 2QI2 Expects Loss In 2Q

I2 Technologies Inc. issued an earnings warning Tuesday saying it expects a net loss of approximately 16 cents per share for the second quarter due to slowing sales and a special charge for bad debt expense of approximately $25 million to $27 million, or 4 cents per share.

I2 CEO Greg Brady says the downturn in the economy, which had a heavy impact on sales to dot-com and marketplace customers, dragged revenue below previous company estimates for the quarter of $275 million. The company projects revenue growth for the year between 15% and 20%, compared with 97% growth last year.

When final earnings are reported for the quarter on July 18, the company expects revenue of $235 million to $240 million, including license revenue of $103 million to $107 million. In the same quarter last year, i2 reported revenue of $242.6 million, a record for the company, and license revenue of $142.7 million, for a profit of $19 million, or 10 cents per share.

I2 CFO Bill Beecher says the company is focused on reducing costs. During last quarter's earnings announcement, the company said it would reduce staff by about 10%. The company did not announce further staff cuts in Tuesday's earnings warning.