Despite shrinking revenue during the past quarter, growing software license sales and rising earnings have supply chain management applications vendor i2 Technologies Inc. guardedly optimistic about the future.

The Dallas-based company Wednesday reported license revenue of US$17 million for the third quarter, up from $14 million in the same quarter the prior year, and revenue of $111 million, down from $117 million in the third quarter of 2003.

Net income was $17 million, up from $7 million in the same quarter last year.

"We continue to make progress toward our goals of achieving operating profitability and long-term growth," Sanjiv Sidhu, i2"s interim CEO, said in a statement. "In the third quarter, we strengthened many key fundamentals of our business, including revenue growth from operations, strengthening our next-generation supply chain products and adding new customers."

In an interview, Sidhu struck a positive note, pointing out there were several strategic wins for i2 in the quarter, including sales to General Motors Corp. and Kia Motors America Inc.

In addition, the company intends in December to submit an appeal to Nasdaq Stock Market Inc. asking it to relist the company"s stock for trade. Sidhu also said that i2 is still seeking a full-time CEO to replace him, although he will remain chairman.