Press Release
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 onJuly 2, 2019 )
Management commentary:
“We are pleased to report total revenue, net bookings, and ending backlog growth in the first quarter of fiscal 2020,” said
“With the
GAAP Fiscal First Quarter 2020 Financial Results
Total revenue in the first quarter of fiscal 2020 increased 4.4% to
Operating expenses in the first quarter were relatively consistent with the same quarter a year ago at
Operating loss in the first quarter was consistent with the same quarter a year ago at
From a balance sheet perspective, cash and short-term investments increased
Non-GAAP Fiscal First Quarter 2020 Financial Results
In addition to results presented in accordance with generally accepted accounting principles in
Non-GAAP operating expenses in the first quarter were relatively consistent with the same quarter a year ago at
Earnings Conference Call
Date:
Time:
Toll-free dial-in number: 1-800-353-6461
International dial-in number: +1 334-323-0501
Conference ID: 5582530
To listen to the live or archived webcast of the earnings call or to view the press release, please visit the investor relations section of the
A replay of the conference call will be available after
About
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
ITERIS, INC. |
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands) |
||||||
|
June 30, |
|
March 31, |
|||
2019 |
|
2019 |
||||
|
|
|
|
|
||
ASSETS: |
|
|
|
|
|
|
Cash |
$ |
15,234 |
|
$ |
7,071 |
|
Short-term investments |
|
20,189 |
|
|
1,935 |
|
Trade accounts receivable, net |
|
16,479 |
|
|
16,929 |
|
Unbilled accounts receivable |
6,755 |
|
6,487 |
|||
Inventories |
|
2,389 |
|
|
2,916 |
|
Prepaid expenses and other current assets |
|
1,675 |
|
|
1,367 |
|
Total current assets |
|
62,721 |
|
|
36,705 |
|
|
|
|
|
|
||
Property and equipment, net |
|
1,883 |
|
|
1,965 |
|
Right-of-use assets, net |
|
12,992 |
|
|
|
|
Intangible assets, net |
|
3,255 |
|
|
3,286 |
|
Goodwill |
|
15,150 |
|
|
15,150 |
|
Other assets |
|
954 |
|
|
849 |
|
Total assets |
$ |
96,955 |
|
$ |
57,955 |
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
|
|
|
|
||
Trade accounts payable |
$ |
8,518 |
|
$ |
9,441 |
|
Accrued payroll and related expenses |
|
8,023 |
|
|
6,536 |
|
Accrued liabilities |
|
3,540 |
|
|
2,370 |
|
Deferred revenue |
|
4,491 |
|
|
4,883 |
|
Total current liabilities |
|
24,572 |
|
|
23,230 |
|
Long-term liabilities |
|
12,361 |
|
|
670 |
|
Total liabilities |
|
36,933 |
|
|
23,900 |
|
Stockholders’ equity |
|
60,022 |
|
|
34,055 |
|
Total liabilities and stockholders’ equity |
$ |
96,955 |
|
$ |
57,955 |
|
|
|
|
|
|
|
ITERIS, INC. |
||||||||||
UNAUDITED CONSOLIDATED |
||||||||||
STATEMENTS OF OPERATIONS |
||||||||||
(in thousands, except per share amounts) |
||||||||||
|
Three Months Ended |
|||||||||
|
June 30, |
|||||||||
|
2019 |
|
2018 |
|||||||
|
|
|
|
|
|
|||||
Product revenues |
$ |
|
14,517 |
|
|
$ |
|
11,918 |
|
|
Service revenues |
|
12,090 |
|
|
|
13,557 |
|
|||
Total revenues |
|
26,607 |
|
|
|
25,475 |
|
|||
Cost of product revenues |
|
8,495 |
|
|
|
6,494 |
|
|||
Cost of service revenues |
|
7,705 |
|
|
|
8,789 |
|
|||
Total cost of revenues |
|
16,200 |
|
|
|
15,283 |
|
|||
Gross profit |
|
10,407 |
|
|
|
10,192 |
|
|||
Operating expenses: |
|
|
|
|
|
|||||
Selling, general and administrative |
|
10,068 |
|
|
|
9,630 |
|
|||
Research and development |
|
1,844 |
|
|
|
2,089 |
|
|||
Amortization of intangible assets |
|
66 |
|
|
|
65 |
|
|||
Total operating expenses |
|
11,978 |
|
|
|
11,784 |
|
|||
Operating loss |
|
(1,571 |
) |
|
|
(1,592 |
) |
|||
Non-operating income (expense): |
|
|
|
|
|
|||||
Other income (expense), net |
|
(10 |
) |
|
|
15 |
|
|||
Interest income, net |
|
33 |
|
|
|
39 |
|
|||
Loss from operations before income taxes |
|
(1,548 |
) |
|
|
(1,538 |
) |
|||
Provision for income taxes |
|
(24 |
) |
|
|
(41 |
) |
|||
Net loss |
$ |
|
(1,572 |
) |
|
$ |
|
(1,579 |
) |
|
|
|
|
|
|
|
|||||
Net loss per share - basic and diluted |
$ |
|
(0.05 |
) |
|
$ |
|
(0.05 |
) |
|
|
|
|
|
|
|
|||||
Shares used in basic per share calculations |
|
34,268 |
|
|
|
33,201 |
|
|||
Shares used in diluted per share calculations |
|
34,268 |
|
|
|
33,201 |
|
|||
|
|
|
|
|
|
ITERIS, INC. |
||||||||||||||
UNAUDITED SEGMENT REPORTING DETAILS |
||||||||||||||
(in thousands) |
||||||||||||||
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
Iteris, Inc. |
|||||||
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|||||||
Product revenues |
$ |
12,771 |
|
$ |
1,746 |
|
$ |
- |
|
|
$ |
14,517 |
|
|
Service revenues |
|
37 |
|
|
10,613 |
|
|
1,440 |
|
|
|
12,090 |
|
|
Total revenues |
$ |
12,808 |
|
$ |
12,359 |
|
$ |
1,440 |
|
|
$ |
26,607 |
|
|
|
|
|
|
|
|
|
||||||||
Segment operating income (loss) |
$ |
2,332 |
|
$ |
1,566 |
|
$ |
(1,035 |
) |
|
$ |
2,863 |
|
|
Corporate and other income (expense), net |
|
|
|
|
|
|
|
(4,345 |
) |
|||||
Amortization of intangible assets |
|
|
|
|
|
|
|
(66 |
) |
|||||
Loss from operations before income taxes |
|
|
|
|
|
|
$ |
(1,548 |
) |
|||||
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
Iteris, Inc. |
|||||||
Three Months Ended June 30, 2018 |
|
|
|
|
|
|
|
|||||||
Product revenues |
$ |
10,801 |
|
$ |
1,117 |
|
$ |
- |
|
|
$ |
11,918 |
|
|
Service revenues |
|
59 |
|
|
12,067 |
|
|
1,431 |
|
|
|
13,557 |
|
|
Total revenues |
$ |
10,860 |
|
$ |
13,184 |
|
$ |
1,431 |
|
|
$ |
25,475 |
|
|
|
|
|
|
|
|
|
||||||||
Segment operating income (loss) |
$ |
1,833 |
|
$ |
1,358 |
|
$ |
(1,142 |
) |
|
$ |
2,049 |
|
|
Corporate and other income (expense), net |
|
|
|
|
|
|
|
(3,522 |
) |
|||||
Amortization of intangible assets |
|
|
|
|
|
|
|
(65 |
) |
|||||
Loss from operations before income taxes |
|
|
|
|
|
|
$ |
(1,538 |
) |
Non-GAAP Financial Measures and Reconciliation
In addition to results presented in accordance with GAAP, the Company has included the following non-GAAP financial measures in this release: non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net income and non-GAAP basic and diluted earnings per share from continuing operations. These non-GAAP financial measures exclude the following items: (a) stock-based compensation; (b) depreciation; (c) amortization; (d) the costs associated with the acquisition of Albeck Gerken, Inc.; and (e) the estimated tax effect of the foregoing non-GAAP adjustments.
Management uses certain non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding financial measures calculated in accordance with GAAP.
Details of the items excluded from GAAP financial results in calculating non-GAAP financial measures and explanatory footnotes are as follows:
a) |
Iteris excludes stock-based compensation expenses from its non-GAAP financial measures primarily because they are non-cash expenses and management finds it useful to exclude certain non-cash charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Iteris believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. |
b) |
Iteris excludes depreciation expenses from its non-GAAP financial measures. Management finds it useful to exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods. |
c) |
Iteris incurs amortization of developed technology and purchased intangibles in connection with acquisitions of certain businesses and technologies. Amortization of developed technologies and purchased intangibles is inconsistent in amount and frequency, and is significantly affected by the timing and size of our developments and acquisitions. Management finds it useful to exclude these variable charges from our cost of revenues and operating expenses to assist in budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of developed technologies and purchased intangible assets will recur in future periods. |
d) |
The amount represents legal, audit, and valuation costs associated with the acquisition of Albeck Gerken. These costs are non-recurring in nature. |
e) |
The amount represents the estimated income tax effect of the non-GAAP adjustments. The tax effect of non-GAAP adjustments for the first quarters of Fiscal 2020 and Fiscal 2019, were calculated by applying an estimated tax rate of 1% to each specific non-GAAP item, due to the impact of the valuation allowance on our effective tax rate in those years. |
Iteris, Inc. | ||||||||||
Schedule Reconciling GAAP Net Loss to Non-GAAP Net (Loss) Income |
||||||||||
($ in thousands, except per share amounts) |
||||||||||
(unaudited) |
||||||||||
|
|
For the Three Months Ended |
||||||||
|
June 30, |
|||||||||
|
|
2019 |
|
2018 |
||||||
|
|
|
|
|
|
|
||||
GAAP net loss |
|
$ |
|
(1,572 |
) |
|
$ |
|
(1,579 |
) |
|
|
|
|
|
|
|
||||
GAAP net loss per share - basic and diluted |
|
$ |
|
(0.05 |
) |
|
$ |
|
(0.05 |
) |
|
|
|
|
|
|
|
||||
The non-GAAP amounts have been adjusted to exclude the following items: |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Excluded from cost of revenues: |
|
|
|
|
|
|
||||
Amortization (c) |
|
$ |
|
181 |
|
|
$ |
|
200 |
|
|
|
|
|
|
|
|
||||
Excluded from operating expenses: |
|
|
|
|
|
|
||||
Stock based compensation (a) |
|
$ |
|
602 |
|
|
$ |
|
522 |
|
Depreciation (b) |
|
|
198 |
|
|
|
265 |
|
||
Amortization (c) |
|
|
66 |
|
|
|
65 |
|
||
Acquisition costs (d) |
|
|
156 |
|
|
|
- |
|
||
Total excluded from operating expenses |
|
$ |
|
1,022 |
|
|
$ |
|
852 |
|
|
|
|
|
|
|
|
||||
Total excluded operating loss |
|
$ |
|
1,203 |
|
|
$ |
|
1,052 |
|
|
|
|
|
|
|
|
||||
Income tax effect on non-GAAP adjustments (e) |
|
|
(12 |
) |
|
|
(11 |
) |
||
Total excluded from operating loss after income tax effect |
|
$ |
|
1,191 |
|
|
$ |
|
1,041 |
|
|
|
|
|
|
|
|
||||
Non-GAAP net (loss) income |
|
$ |
|
(381 |
) |
|
$ |
|
(538 |
) |
|
|
|
|
|
|
|
||||
Non-GAAP net (loss) income per share - basic and diluted |
|
$ |
|
(0.01 |
) |
|
$ |
|
(0.02 |
) |
(a) - (e) See corresponding footnotes above.
Iteris, Inc. |
||||||||||
Schedule Reconciling GAAP Operating (Loss) to Non-GAAP Operating (Loss) Income |
||||||||||
($ in thousands) |
||||||||||
(unaudited) |
||||||||||
|
|
For the Three Months Ended |
||||||||
|
|
June 30, |
||||||||
|
|
2019 |
|
2018 |
||||||
GAAP cost of revenues |
|
$ |
|
16,200 |
|
|
$ |
|
15,283 |
|
Amortization (c) |
|
|
(181 |
) |
|
|
(200 |
) |
||
Non-GAAP cost of revenues |
|
$ |
|
16,381 |
|
|
$ |
|
15,083 |
|
|
|
|
|
|
|
|
||||
GAAP operating expenses |
|
$ |
|
11,978 |
|
|
$ |
|
11,784 |
|
Stock based compensation (a) |
|
|
(602 |
) |
|
|
(522 |
) |
||
Depreciation (b) |
|
|
(198 |
) |
|
|
(265 |
) |
||
Amortization (c) |
|
|
(66 |
) |
|
|
(65 |
) |
||
Acquisition costs (d) |
|
|
(156 |
) |
|
|
- |
|
||
Non-GAAP operating expenses |
|
$ |
|
10,956 |
|
|
$ |
|
10,932 |
|
|
|
|
|
|
|
|
||||
GAAP operating loss |
|
$ |
|
(1,571 |
) |
|
$ |
|
(1,592 |
) |
Stock based compensation (a) |
|
|
602 |
|
|
|
522 |
|
||
Depreciation (b) |
|
|
198 |
|
|
|
265 |
|
||
Amortization (c) |
|
|
247 |
|
|
|
265 |
|
||
Acquisition costs (d) |
|
|
156 |
|
|
|
- |
|
||
Non-GAAP operating loss |
|
$ |
|
(368 |
) |
|
$ |
|
(540 |
) |
(a) - (d) See corresponding footnotes above.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190806005767/en/
Source:
Investor Relations
MKR Investor Relations, Inc.
Todd Kehrli
323-468-2300
iti@mkr-group.com