Itron announced financial results for second quarter ended June 30, 2020.
Key results in Q2 2020 vs Q2 2019
Revenue of $510 million vs $635 million
Gross margin of 27.2 percent vs 30.1 percent
Net loss of $63 million vs net income of $19 million
Total backlog of $2.9 billion vs $3.1 billion
Tom Deitrich, Itron’s president and chief executive officer, said: “We remain confident in our ability to work through the near-term challenges presented by the Covid-19 pandemic as we make strides in our strategy and the long-term opportunities it can deliver.”
Itron said its revenue decreased 20 percent to $510 million.
Device Solutions revenue decreased 41 percent. Networked Solutions revenue decreased 9 percent and Outcomes revenue decreased 9 percent. The decreases were primarily due to Covid-19.
Consolidated company gross margin of 27.2 percent decreased 290 basis points from the prior year due to Covid-19 induced manufacturing inefficiencies.
Operating expenses of $184 million increased $36 million from the prior year due to a $57 million loss on sale of business in the current period related to the divestment of manufacturing and sales operations in Latin America. This sale was part of its operations strategy to move to a more asset light business model.
Itron reported operating loss of $45 million due to lower gross profit and higher operating expenses.
Itron said total backlog was $2.9 billion and 12-month backlog was $1.3 billion, compared with $3.1 billion and $1.4 billion, respectively, in the prior year. Bookings in the quarter totaled $390 million.