Iteris Reports 14% Revenue Growth Year Over Year for Fiscal Third Quarter 2022

Estimates Fourth Quarter Double Digit Organic Revenue Growth and Revises Full Year Revenue Guidance to $134 Million to $136 Million, Representing 14% to 16% Growth Year Over Year

SANTA ANA, Calif. – February 3, 2022 – Iteris, Inc., the global leader in smart mobility infrastructure management, today reported financial results for its fiscal third quarter 2022 ended December 31, 2021. During the first quarter of fiscal 2021, the company completed the sale of its Agriculture and Weather Analytics segment to DTN, LLC. The results of the Agriculture and Weather Analytics segment are reported as discontinued operations for all periods presented in this release.

Fiscal Third Quarter 2022 Financial Summary

• Total revenue of $32.0 million, up 14% year over year
  • Service revenue was up 37% year over year to $16.1 million, due to continued adoption of Iteris’ ClearMobility™ Platform
  • Product revenue was down 3% year over year to $15.9 million, due to supply chain and third-party supplier delays
• Record total net bookings of $40.9 million, up 99% year over year
• Record total ending backlog of $92.3 million, up 20% year over year
• GAAP net loss from continuing operations of $2.4 million, or $(0.06) per diluted share, due to additional costs incurred related to raw material shortages
   

Year to Date 2022 Financial Summary

• Total revenue of $99.3 million, up 16% year over year
  • Service revenue was up 24% year over year to $47.7 million, due to continued adoption of Iteris’ ClearMobility Platform
  • Product revenue was up 10% year over year to $51.6 million, despite supply chain and third-party supplier delays
• Total net bookings of $113.6 million, up 28% year over year
• GAAP net loss from continuing operations of $3.9 million, or $(0.09) per diluted share
• Adjusted EBITDA of $5.5 million, a 3% decrease year over year
   

Fiscal Full Year 2022 Outlook

• Adjusts total revenue guidance range to $134 million to $136 million, which would represent year-over-year growth of 14% to 16%
• Lowers adjusted EBITDA guidance range to 5% to 5.4% of fiscal 2022 full year revenue
   

Management Commentary:

“While supply chain issues affected cost of goods sold and revenue recognition in our fiscal third quarter, we experienced sustained strong customer adoption of Iteris’ ClearMobility Platform,” said Joe Bergera, president and CEO of Iteris. “During the quarter, total net bookings rose 99% year over year, resulting in record total ending backlog of $92.3 million. Although we anticipate supply chain challenges to continue through our fiscal fourth quarter, we expect double digit organic revenue growth due to the strength of our backlog and continued above market bookings growth.”

GAAP Fiscal Third Quarter 2022 Financial Results

Total revenue in the third quarter of fiscal 2022 increased 14% to $32.0 million, compared with $28.2 million in the same quarter a year ago, primarily driven by the addition of revenues from TrafficCast.

Operating expenses in the third quarter increased 9% to $13.1 million, compared with $12.0 million the same quarter a year ago. The increase was a result of the TrafficCast acquisition, and continued investment in research and development, and sales and marketing.

Operating loss from continuing operations in the third quarter was approximately $2.0 million, compared with an operating loss from continuing operations of approximately $0.3 million in the same quarter a year ago. Net loss from continuing operations in the third quarter was approximately $2.4 million, or $(0.06) per diluted share, compared with net loss from continuing operations of $0.3 million, or $(0.01) per diluted share, in the same quarter a year ago.

Non-GAAP Fiscal Third Quarter 2022 Financial Results

In addition to results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the company has included the following non-GAAP financial measure: Adjusted income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, restructuring charges, acquisition costs, executive severance and transition costs, and project loss reserves (“Adjusted EBITDA”). A discussion of the company’s use of this non-GAAP financial measure is set forth below in the financial statements portion of this release under the heading “Non-GAAP Financial Measures and Reconciliation.”

Adjusted EBITDA in the third quarter was approximately $0.1 million, or 0.3% of total revenues, compared with approximately $1.5 million, or 5.2% of total revenues, in the same quarter a year ago.

Earnings Conference Call

Iteris will conduct a conference call today to discuss its fiscal third quarter results.

Date: Thursday, February 3, 2022
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: +1-888-220-8451
International dial-in number: +1 323-794-2588
Conference ID: 8805832

To listen to the live webcast or view the press release, please visit the investor relations section of the Iteris website at www.iteris.com.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through February 10, 2021. To access the replay dial information, please click here.

About Iteris, Inc.

Iteris is the global leader in smart mobility infrastructure management – the foundation for a new era of mobility. We apply cloud computing, artificial intelligence, advanced sensors, advisory services and managed services to achieve safe, efficient and sustainable mobility. Our end-to-end solutions monitor, visualize and optimize mobility infrastructure around the world to help ensure that roads are safe, travel is efficient, and communities thrive. Visit www.iteris.com for more information, and join the conversation on Twitter, LinkedIn and Facebook.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will," "can," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s anticipated demand and growth opportunities, conversion of bookings to revenue, the impact and success of new solution offerings, the Company’s recent acquisition, our future performance, growth and profitability, operating results, and financial condition and prospects. Such statements are subject to certain risks, uncertainties, and assumptions that are difficult to predict and actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, federal, state and local government budgetary issues, spending and scheduling changes, funding constraints and delays, including in light of the COVID-19 pandemic; the timing and amount of government funds allocated to overall transportation infrastructure projects and the transportation industry; our ability to replace large contracts once they have been completed; the effectiveness of efficiency, cost, and expense reduction efforts; our ability to achieve anticipated benefits from our sale of our Agriculture and Weather Analytics segment; our ability to successfully complete and integrate acquired assets and companies; our ability to specify, develop, complete, introduce, market and gain broad acceptance of our new and existing product and service offerings; risks related to our ability to recruit and/or retain key talent; the potential unforeseen impact of product and service offerings from competitors, increased competition in certain market segments, and such competitors’ patent coverage and claims; any softness in the markets that we address; adverse effects of the COVID-19 pandemic on our vendors and our employees; and the impact of general economic and political conditions and specific conditions in the markets we address, and the possible disruption in government spending and commercial activities, such as the COVID-19 pandemic, import/export tariffs, terrorist activities or armed conflicts in the United States and internationally. Further information on Iteris, Inc., including additional risk factors that may affect our forward-looking statements, as contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and our other SEC filings that are available through the SEC's website (www.sec.gov).

Iteris Contact

Douglas Groves
Senior Vice President and Chief Financial Officer
Tel: (949) 270-9643
Email: dgroves@iteris.com