Struggling supply-chain management software maker i2 Technologies Inc. said Wednesday it will receive a US$100 million cash infusion from one of its backers, Fort Worth, Texas, investment firm Q Investments.
The news came as Dallas-based i2 hosts its annual user show, in San Diego, and attempts to reassure customers nervous about the beleaguered vendor's future. Last month the company announced layoffs and other spending cuts intended to trim 10 percent off its operating expenses, which have persistently outstripped i2's sales. The company last week announced a $30 million loss in its first quarter, a period in which revenue declined 47 percent from last year's first quarter.
The $100 million adds to the $259.1 million in cash and cash equivalents i2 had on hand as of March 31, the end of its first quarter. The investment raises Q Investments' ownership stake in i2 to 26 percent. I2 plans to expand its board of directors to seven members, adding two new directors representing Q Investments.
I2 said last month it has earmarked $42 million for use in a potential settlement of class-action lawsuits against the company. The company is under investigation by the U.S. Securities and Exchange Commission (SEC) for accounting violations: Last July, it restated four years' worth of financial results. I2 cited a myriad of issues in SEC filings explaining the correction, including improper timing in its revenue recognition practices, a problem similar to the one that led to Computer Associates International Inc.'s management purge and ongoing legal trouble.