Itron has generated revenues of $507 million, an increase of 8 percent from $470 million in the third quarter 2015.
Electricity and Gas segments contributed greater share of the revenue. Total advanced and smart meter volumes increased 24 percent primarily due to smart metering projects in North America and Europe.
Electricity revenues grew 17 percent driven by smart metering projects in North America and Gas revenues grew 5 percent driven by a new record level of revenue in North America.
Revenues in the Water segment decreased 5 percent compared with the prior year driven by weakness in international regions and timing of anticipated project activity.
Operating expenses for the quarter were $164 million compared with $120 million in 2015. The increase was due to $41 million in restructuring charges related to plans announced on Sept. 1, 2016 as well as higher general and administrative costs for professional fees associated with accounting, audit and legal services.
GAAP operating income was $6 million for the quarter compared with $27 million in 2015. Net loss for the quarter was $10 million, compared with net income of $13 million in 2015.
The lower operating income and the net loss for the quarter were driven by the restructuring charges. Net income was also impacted by a higher effective tax rate resulting from restructuring charges in jurisdictions with valuation allowances on deferred tax assets, Itron said.
“We are pleased with our strong financial performance during the third quarter, including substantial top-line growth and continued margin improvement,” said Philip Mezey, Itron’s president and chief executive officer.
“In 2016, we are realizing benefits from successfully executing our prior restructuring and cost savings initiatives while continuing to grow our business. Given our strong performance year-to-date, we currently expect our results to come in at the high-end of our guidance, or potentially a little above,” Mezey added.
Looking ahead, the company’s investments in OpenWay Riva IoT solution and differentiated software and services offerings will position Itron well for continued growth and profitability, Mezey concluded.