Itron said third quarter revenue fell 14 percent to $421 million, or 9 percent, due to the sale of certain product lines in Device Solutions business, and the impact of component shortages on Networked Solutions business.
Device Solutions revenue declined 38 percent, Networked Solutions revenue decreased 2 percent, and Outcomes revenue decreased 5 percent primarily due to the continuing decline of prepay business in EMEA.
“In the third quarter of 2022, we saw strong market demand and had robust quarter of bookings, which pushed our total backlog to new record levels.” said Tom Deitrich, Itron’s president and chief executive officer. “However, semiconductor supply constraints continued to slow the conversion of backlog into revenue which limited our operating results.”
Itron said gross margin of 28.5 percent increased 80 basis points from the prior year, primarily due to favorable mix, partially offset by inefficiencies related to component shortages.
Itron said operating expenses of $113 million decreased $18 million from the prior year primarily due to lower sales, general and administrative, and product development expenses.
Itron said operating income of $7 million was $3 million higher than the prior year primarily due to lower operating expenses, partially offset by lower gross profit.
Itron said total backlog was $4.2 billion and 12-month backlog was $1.6 billion, compared with $3.4 billion and $1.4 billion, respectively, in the prior year. Bookings in the quarter totaled $578 million, Itron said.
Itron said it’s expecting revenue of $420-$460 million and EPS between $0.00 and $0.15 for the fourth quarter of 2022.