i2 TECHNOLOGIES CORRECTS FLAWED SOFTWARE FOR SIEMENS
i2 Technologies, a software provider based in Dallas, has corrected flaws in a real-time tracking application sold last year to Siemens Information and Communications Network, part of Siemens, the German manufacturer based in Munich.
Siemens bought i2’s Global Logistics Monitor application, which sets up an online tracking network that enables users to check on orders anytime. The $100-million, three-year project, one of i2’s largest, affects 100 Siemens divisions in 200 countries.
Last fall, when Siemens discovered that i2’s software did not meet expectations, i2 corrected the problems in eight weeks.
“This was a single, isolated instance of something that didn’t meet their requirements,” said Brent Anderson, a spokesman for i2’s investor division, who told AS+ that Siemens had successfully taken on other i2 applications.
From the time Siemens expressed displeasure with i2’s software, the German company decided to develop its own application, which is now said to be working well at one Siemens division.
Siemens is now deciding whether to use i2’s fixed application, or its own software.
In 2001, after Nike publicly cited software glitches in i2 applications as allegedly having caused order delays and excess inventory in its footwear division, i2’s shareholders filed a class-action suit against the company for not disclosing problems at Nike in regulatory filings.
This time, i2 cited the Siemens project as a possible 'risk related to business,' in a weekly regulatory filing.
“Siemens has asserted certain claims against us regarding issues they claim to have experienced with respect to some of our software products and services,” the filing stated. “Whether customer claims of this type are founded or unfounded, if such claims are not resolved in a manner favorable to us, they may affect the market perception of our company and our products,” it said.
i2 has warned that it expects to miss revenue targets for the first quarter of 2002.