p. smith

i2 Technologies' Turnaround: Part II

Quote Mike Berry, i2 CFO... "i2 solutions are second to none and the team implimenting them are second to none as well."

Not many people can say that.

i2 Technologies' Turnaround: Part II

i2 has $139 millions in cash and $86 millions in debt which eq. to $53 millions cash and no debt.

Most importantly, i2's maintenance revenue has shown a 5% growth y/y in q1-2008, 1st time in 10 years.

When a software company turned-around, maintenance revenue growth is the last thing to happen.

i2 has reported 12 consective quarters of profit and has been growing record bookings for the last 2 quarters.

i2 Technologies' Turnaround: Part II

Many had been hurt by i2's downfall in the past and many will miss its coming back if it's not been acquired in the near future.

i2's stock is still in the bottom of a trash bin just don't know when will it start to surge? maybe until enough people know the story.

The buy-out price (if it happens) could have very little to do with today's trading price. Hedge funds know the valuation and are demanding the company to do something to increase shareholders's value.

One particular hedge fund named "AMALGAMATED GADGET LP" aka Q investment based in Fort Worth who holds i2's 2.5% prefer stock has been crying out loud to sell the company at any price. Why? because as long as i2 has a "change in control", Q will be entitled to a 110% payback of its holding of prefer stock, NO MATTER WHAT PRICE I2 IS SOLD FOR, and that's part of the deal of the prefer stock.

Many other hedge funds and i2 shareholders have realized that what's good for Q is not necessarily good for every shareholder.

"AMALGAMATED GADGET LP" aka "Q investment" is said to be run by Geoffrey P. Raynor, a Texas multi-millionaire.

i2 Technologies' Turnaround: Part I

4/30/2008 comes and goes.

Today is the date i2 and SAP went to court, i2 is suing SAP for infringing 7 of its SCM patends involving about 300 cases/deals.

Can you believe that the Markman hearing is over?

Although we don't know how it went now but we know i2 was well prepared and dead serious about winning this case for several reasons.

1. SAP used the partnership to steal the patented technologies from i2.

2. SAP hired i2 employees who were familiar with the technologies to develop products with similiar capability to compete with i2.

3. SAP bad-mouthed i2 to scare potential customers from buying i2 products products by spreading rumors that i2 will be going out of business.

If wins the case, i2 intends to seek the maximum damage to SAP including court injunction to prohibit SAP from selling its products and servicing its customers together with maximum monetary damage.

i2 do not intend to license its technologies to SAP.

SAP had better be praying hard that i2 do not win the case, otherwise the loss will be devastating.

i2 Technologies' Turnaround: Part I

By the way... your so called McGrath and his team were McGrath, B. Stinnet and J. Cummings.

Stinnet was obviously another corp. hopper, very expensive but very unimpressive in terms of performance. A smooth talker but more like a car saleswoman, as to SCM, I don't think she can have a deep conversation with a client who needed help.

As to J. Cummings, he was the biggest joke. Nobody can stay awake after listening to his presentation for 10 minutes. An i2 shareholder got so pissed and asked McGrath how in the world did the guy get that job.

Thank God the team is all out of i2.

McGrath was a quick cost cutter or so-called a chain-saw and he was more than fairly compensated. The i2 board should have let him go 7 months earlier; in other words, the renewed of his last year contract was a mistake and they had to let him go 5 months before the term ended.

As to the two Wall Street analysts mentioned, you just have to listen to them asking questions at i2 conference calls to realize how clueless these two were. When i2 had a good quarter, they move their target a few bucks higher and vise versa, these people have out-lived their usefulness since i2 is all on fair disclosure.

i2 Technologies' Turnaround: Part I

The contribution of McGrath was cutting cost and selling asset to raie money but he did not grow the revenue, and he wasn't spending much time with i2 clients like i2 executives did and do now.

It cost almost 12 cents per share per year of i2 earnings to have McGrath, he was paid $1 million plus and he ran over $1 million in charter plane and huge stocks and stock options and all kind of perks you can think of. This man is a typical greed, how can someone ran that kind of tab while the company and all its shareholders were trying to grab a piece of wood just to stay alive?

Some people don't like Chatterjee but this man is very well respected in i2 and in SCM world. He was born in India with a little accent like all foreign born Americans but he's getting a lot better in presiding the earning conference calls.

Some of those American born CEO's are such smooth talkers, they scar me to death.