Greentech Lead U.S: Smart metering solutions provider
Itron has reported revenues of $504 million for the quarter and $1.7 billion
for the first nine months of 2012, compared with $616 million and $1.8 billion
in the same periods in 2011.
Changes in foreign currency exchange rates unfavorably
impacted revenue by $35 million for the quarter and $83 million for the first
nine months of 2012.
Excluding the impact from foreign currency, revenues for
the quarter and nine month period decreased $76 million and $54 million
compared with the same periods in 2011 primarily due to the completion of
several OpenWay projects in North America. Higher revenue in the Water segment
was offset by lower
“Revenue for the third quarter was down
year-over-year as expected due to the successful completion of several large
OpenWay deployments in North America,” said LeRoy Nosbaum, Itron’s president
and chief executive officer. “Base business revenues were flat year-over-year
as we saw some softening in the U.S. market.”
“While the macro environment may be challenging in the
near term, I’m very encouraged with our progress on operating efficiencies,
pace of product development and our competitive position in the field,” Nosbaum
In major developments in the quarter, Itron won contract
with Southern California Gas Company. the company was also selected at Los
Angeles Department of Water and Power, City of San Diego’s Public Utilities
Department and City Power Johannesburg.
Gross margin for the quarter was 34.1 percent compared
with the prior year period margin of 28.8 percent. For the first nine months of
2012, gross margin was 33.3 percent compared with 30.9 percent in the prior
Gross margin improvement over the prior year for the
quarter and first nine months driven by lower warranty costs in both the Energy
and Water segments, which positively impacted gross margin by 5.4 percentage
points in the quarter and 1.9 percentage points in the nine month period.
Additionally, benefits from our restructuring actions and manufacturing
efficiencies offset the impact of decreased volumes.
GAAP net income and diluted EPS for the quarter and nine
month period was $35 million, or 89 cents per share, and $92 million, or $2.31
per share. This compares to a net loss of $517 million, or $12.70 per share,
and $456 million, or $11.21 per share in the same periods in 2011.
The 2012 net income for the quarter was positively
impacted by decreased interest expense. The net income for the nine month
period of 2012 was positively impacted by decreased interest expense which was
partially offset by an increase in tax expense driven by discrete tax benefits
recognized in the prior year.
The company’s guidance assumes a gross margin
between 32 to 33 percent for the fourth quarter, a Euro to U.S. dollar average
exchange rate of $1.28 for the fourth quarter, average shares outstanding of
approximately 40 million for the year and a non-GAAP effective tax rate for the
year of 26 percent.