Severe Weather Disrupted Operations in Strategic Markets
SANTA ANA, Calif. – November 7, 2017 – Iteris, Inc. (NASDAQ: ITI), the global leader in applied informatics for transportation and agriculture, today reported financial results for its fiscal second quarter ended September 30, 2017.
Fiscal Second Quarter 2018 Financial Highlights
- Record total revenue of $25.2 million, up 5% year over year
- Transportation Systems revenue of $13.1 million, up 6% year over year
- Roadway Sensors revenue of $11.3 million, up 3% year over year
- Agriculture and Weather Analytics revenue of $0.9 million, up 7% year over year
Fiscal First Half 2018 Financial Highlights
- Record total revenue of $52.4 million, up 9% year over year
- Transportation Systems revenue of $27.8 million, up 13% year over year
- Roadway Sensors revenue of $22.5 million, up 5% year over year
- Agriculture and Weather Analytics revenue of $2.1 million, up 18% year over year
“We are encouraged to report continued growth across all of our business segments despite the unprecedented destruction that Hurricanes Harvey and Irma inflicted on two of our most strategic markets – Texas and Florida,” said Joe Bergera, president and CEO. “During the quarter, we not only experienced a variety of project delays but we also redeployed field personnel to assist with emergency relief. The region’s recovery now seems well underway and we expect our business to normalize over the second half of our fiscal year.”
“We are excited about our business outlook. Notwithstanding recent events, the fundamentals for both the smart transportation and digital agriculture markets remain positive. We will continue to improve execution across our traditional lines of business, while we also introduce business model innovations to enhance the long-term financial characteristics of our enterprise.”
Fiscal Second Quarter 2018 Financial Results
Total revenues in the second quarter of fiscal 2018 increased 5% to a record $25.2 million, compared with $24.1 million in the same quarter a year ago. This growth was driven by a 6% increase in Transportation Systems, a 3% increase in Roadway Sensors, and to a lesser extent, a 7% increase in Agriculture and Weather Analytics revenues.
Operating expenses in the second quarter were $11.1 million, compared with $9.6 million in the same quarter a year ago. The increase was primarily due to increases in selling, general and administrative expenses as a result of planned headcount increases in general and administrative positions, as well as increases in the Transportation Systems and Roadway Sensors salesforce headcount, all of which resulted in higher salary and personnel-related costs.
Operating loss in the second quarter was $1.1 million, compared with an operating loss of approximately $185,000 in the same quarter a year ago. Net loss in the second quarter was approximately $984,000 or ($0.03) per share, compared with a net loss of approximately $40,000 or ($0.00) per share in the year-ago quarter.
Earnings Conference Call
Iteris will conduct a conference call today to discuss its fiscal second quarter 2018 results.
Date: Tuesday, November 7, 2017
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-866-564-2842
International dial-in number: 1-323-794-2094
Conference ID: 2210377
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 21, 2017. 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.
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 potential revenue growth for the upcoming quarters, the impact of natural disasters to our business, and our future performance, growth, operating results, 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, the potential impact of natural disasters in our strategic markets; federal, state and local government budgetary issues, constraints and delays; the timing and amount of government funds allocated to overall transportation infrastructure projects and the transportation industry; the potential unforeseen impact of product and service offerings from competitors, increased competition in certain market segments and other competitive pressures; our ability to secure additional Transportation Systems consulting contracts and successfully complete such contracts on a timely basis; our ability to specify, develop, complete, introduce, market and gain broad acceptance of our new and existing products and technologies the timing and successful completion of customer qualification of our products and the risks of non-qualification; the effectiveness of efficiency, cost, and expense reduction efforts; our ability to successfully identify, complete and integrate acquisitions of products, technologies and companies; our ability to retain, integrate and incentivize our new management team and their ability to shape the strategic direction of the company and implement change; any softness in the real estate development market, 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 related to terrorist activity or armed conflict 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).
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