Itron reported $495 million in revenues for the third quarter ended September 30, 2013, compared with $504 million in the same periods in 2012.
GAAP operating loss for the quarter was $6 million compared with operating income of $46 million in the 2012 period. For the first nine months of 2013, GAAP operating income was $14 million compared with $132 million in the 2012 period.
Changes in foreign currency exchange rates unfavorably impacted revenue by $3 million for the quarter and $11 million for the first nine months of 2013. Excluding the impact from foreign currency, revenues for the quarter and nine month period decreased $6 million and $218 million compared with the same periods in 2012, Itron said.
Revenue for the nine month period ended September 2013 was $1.4 billion as compared with $1.7 billion in the same periods in 2012.
“Our third quarter revenue and non-GAAP earnings performance improved compared to the first two quarters of the year,” said Philip Mezey, Itron’s president and chief executive officer. “Revenues increased sequentially in each business line: electric, gas and water.”
The decrease for the quarter and nine month period was driven by lower Energy segment revenues primarily related to the completion of several OpenWay projects in North America, partially offset by an increase in Water segment revenues, the company said.
Gross margin for the quarter was 30.3 percent compared with the prior year period margin of 34.1 percent. For the first nine months of 2013, gross margin was 31.6 percent compared with 33.3 percent in the prior year period.
Gross margin declined for the quarter and nine month period primarily due to a charge recorded in the third quarter for increased costs on an OpenWay project in North America and the impact of product mix and lower volumes.
GAAP operating expenses were $157 million in the quarter and $436 million for the first nine months of 2013 compared with $126 million and $420 million in the same periods of 2012. The increase in expenses for the quarter and nine month period was primarily due to restructuring expenses.
GAAP net loss for the quarter was $7 million, compared with net income of $35 million, or 89 cents per diluted share.
For the first nine months of 2013, GAAP net income and diluted earnings per share were $8 million, compared with $92 million, in the same period in 2012. The decrease in GAAP operating income and net income was attributable to lower gross profit and higher operating expenses related primarily to restructuring, partially offset by lower tax expense.
Regarding the full year guidance, Steve Helmbrecht, Itron executive vice president and chief financial officer, said, “Given our third quarter results and softness in Europe, we anticipate our full year results will be at the low end of our guidance range of $1.95 billion to $2 billion of revenue and $2.25 to $2.55 of non-GAAP earnings per share.”