The news was impressive given the timing of the quarter. December and January are tough selling months because businesses are planning the coming year. Throw in the economic slowdown and it's easy to understand why many companies, including i2, are having problems selling big-ticket applications. Supply chain software helps companies reduce costs and increase revenue by enhancing the production and procurement processes for goods. The company has also had success targeting small deals, which are easier to close than multiyear contracts in tough economic conditions.
Smaller deals are also easier to install, helping businesses reap the benefits swiftly.
Likewise, i2 hailed the ROI of its software last quarter after beating expectations, but that clearly wasn't enough this time. The company has also had success winning large multiyear deals, which are more difficult to close in the current economic environment. The good news is that purchasing has only been delayed. In other words, deals haven't been lost to the competition, rather delayed until the economy improves. That's something i2's management won't likely let investors and analysts forget in the conference call today.