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I2 Technologies Inc., the writer of supply-chain-management software whose shares have dropped 33 percent in the past six months, said its board formed a committee to consider options that may include a sale of the company.
I2 Technologies said in a statement that its board had formed a three-director committee to evaluate possible mergers, sales, joint ventures or acquisitions. The panel will be led by Jackson L. Wilson Jr. and will include directors Richard L. Clemmer and Lloyd G. Waterhouse.
``I want to emphasize there can be no assurance that the ongoing exploration of options will result in any new or different course of action,'' founder and chairman Sanjiv Sidhu said today in a conference call with analysts and investors. ``The company does not currently intend to disclose the developments with respect to the exploration unless and until the board of directors has approved a specific course of action.''
Michael McGrath resigned as I2's chief executive officer on July 31, less than two weeks after the Dallas-based company reported that earnings for the three months ending in June were below analyst estimates, the second quarter in a row it missed forecasts.
The company had started a search earlier in the year for a replacement for McGrath, who had been expected to retire at the end of 2007 when his contract expired. He was replaced on an interim basis by Pallab Chatterjee.
The committee was formed as part of an ongoing review of the company. The review by JPMorgan Chase Securities Inc. of I2's management, operations and strategy will end when the panel presents its recommendations to the board at the end of January.
The board has identified several candidates for chief executive officer and will name a permanent replacement for McGrath after the review is finished, Sidhu said.
I2 Technologies also said today that net income for the third quarter rose to $5.32 million, or 17 cents a share, from $4.55 million, or 15 cents, a year earlier. Revenue fell less than the company had previously forecast to $66.5 million.
The company boosted its forecast for the year, saying it expects 2007 net income to fall to 55 cents to 65 cents a share and sales to drop to $263.5 million and $266.5 million. It had previously said it expected net income to fall to 43 cents to 58 cents a share and revenue to decrease to $260 million to $265 million.
I2's shares rose $1.12, or 6.6 percent, to $18.08 as of 4 p.m. New York time in Nasdaq Stock Market composite trading, its biggest jump since Feb. 1.
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