SANTA ANA, Calif. – August 6, 2019 – Iteris, Inc. (NASDAQ: ITI), the global leader in applied informatics for transportation and agriculture, today reported financial results for its first fiscal quarter 2020 ended June 30, 2019.
Fiscal First Quarter 2020 Financial Highlights
- Total revenue of $26.6 million, up 4% year over year
- Total net bookings of $31.0 million, up 11% year over year
- Total ending backlog of $59.8 million, up 20% year over year
- Closed underwritten public offering of $26.8 million of shares of common stock, net of transaction costs
- Entered definitive agreement to acquire Albeck Gerken, Incorporated for $10.7 million (acquisition closed on July 2, 2019)
“We are pleased to report total revenue, net bookings, and ending backlog growth in the first quarter of fiscal 2020,” said Joe Bergera, president and CEO. “Over the last several quarters, Iteris has introduced several innovative solutions that have positioned the company to capitalize on favorable long-term, secular trends in both our end markets – smart transportation and digital agriculture.”
“With the Texas market for intersection detection re-normalizing in our first quarter, revenue from the Roadway Sensors segment increased 17.9% year over year, reflecting the strong demand for our family of smart sensors that had been obscured in our prior fiscal year,” continued Mr. Bergera. “Going forward, our Transportation Systems segment will also contribute to enterprise growth as historic levels of prior period bookings convert to revenue and we consolidate the financial results of the recent Albeck Gerken acquisition.”
GAAP Fiscal First Quarter 2020 Financial Results
Total revenue in the first quarter of fiscal 2020 increased 4.4% to $26.6 million, compared with $25.5 million in the same quarter a year ago. This increase was driven primarily by a 17.9% increase in Roadway Sensors. Agriculture and Weather Analytics posted a 0.6% increase year over year, however, the previous year period benefitted from a $0.25 million one time favorable revenue pickup. Transportation Systems posted a 6.3% decrease year over year primarily driven by the year over year change in the value of the VDOT TOC contract.
Operating expenses in the first quarter were relatively consistent with the same quarter a year ago at $12.0 million, compared with $11.8 million. Operating loss in the first quarter was consistent with the same quarter a year ago at $1.6 million for both periods. Net loss in the first quarter was $1.6 million, or ($0.05) per share for both the first quarter and the same quarter a year ago.
From a balance sheet perspective, cash and short-term investments increased $26.4 million from the start of the fiscal year as a result of $26.8 million in net proceeds from the issuance of 6.2 million shares of common stock in connection with our public offering in June of the current quarter. Excluding these proceeds, our cash and short-term investments balance was relatively flat at $8.7 million when compared to the prior year end balance of $9.0 million. Long-term assets and liabilities increased $13.0 million and $11.7 million, respectively, when compared to prior year end, primarily as a result fo the current period adoption of the new lease accounting standard, ASC 842, which requires the recording of lease related assets and liabilities on our balance sheet.
Non-GAAP Fiscal First Quarter 2020 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 measures: non-GAAP operating expenses, non-GAAP operating loss, non-GAAP net loss and non-GAAP basic and diluted net loss per share. These non-GAAP financial measures exclude the following items: (a) stock compensation expense; (b) depreciation; (c) amortization; (d) the costs associated with the acquisition of Albeck Gerken; and (e) the estimated tax effect of the foregoing non-GAAP adjustments. A discussion of the company’s use of these non-GAAP financial measures is set forth below in the financial statements portion of this release under the heading “Non-GAAP Financial Measures and Reconciliation”, which also includes a reconciliation of such non-GAAP financial measures to their most comparable GAAP financial measures for the three months ended June 30, 2019 and 2018.
Non-GAAP operating expenses in the first quarter were relatively consistent with the same quarter a year ago at $11.0 million, compared with $10.9 million. Non-GAAP operating loss in the first quarter was approximately $368,000, compared with Non-GAAP operating loss of approximately $540,000 in the same quarter a year ago. Non-GAAP net loss in the first quarter was approximately $381,000, or ($0.01) per share, compared with a Non-GAAP net loss of approximately $538,000, or $(0.02) per share, in the same quarter a year ago.
Earnings Conference Call
Iteris will conduct a conference call today to discuss its fiscal first quarter 2020 results.
Date: Tuesday, August 6, 2019
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-800-353-6461
International dial-in number: +1 334-323-0501
Conference ID: 5582530
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 13, 2019. To access the replay dial information, please click here.
About Iteris, Inc.
Iteris is the global leader in applied informatics for transportation and agriculture, turning big data into big breakthrough solutions. We collect, aggregate and analyze data on traffic, roads, weather, water, soil and crops to generate precise informatics that lead to safer transportation and smarter farming. Municipalities, government agencies, crop science companies, farmers and agronomists around the world use our solutions to make roads safer and travel more efficient, as well as farmlands more sustainable, healthy and productive. 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, 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 policy changes, constraints and delays; the timing and amount of government funds allocated to overall transportation infrastructure projects and the transportation industry; our ability to secure additional contract awards and successfully complete awarded contracts on a timely and cost-effective basis; the effectiveness of efficiency, cost, and expense reduction efforts; our ability to successfully complete and integrate acquired 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, 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 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).
MKR Investor Relations, Inc.
Tel: (323) 468-2300