Iteris, Inc. Reports Fourth Quarter Revenue of $16.4 Million
SANTA ANA, Calif.--Iteris, Inc. (NYSE Amex: ITI), a leader in the traffic management market that focuses on the application and development of advanced technologies, today reported financial results for its fourth fiscal quarter ended March 31, 2009.
For the quarter ended March 31, 2009, Iteris, Inc. (the “Company”) reported net sales and contract revenues of $16.4 million, representing a 4.0 percent decrease compared to net sales and contract revenues of $17.1 million reported in the same quarter of the prior fiscal year. Despite the challenging economic environment, the Company’s Transportation Systems group reported record revenues of $8.6 million which represented a 24.3 percent increase compared to the same quarter in the prior fiscal year. This growth was offset by an 18.3 percent decrease in Roadway Sensors revenues to $5.9 million and a 36.0 percent decrease in Vehicle Sensors revenues to $1.9 million.
Gross margins declined to 35.3 percent in the current fiscal quarter compared to 43.6 percent reported in the same quarter of the prior fiscal year. The decrease in gross margins was primarily as a result of a higher mix of Transportation Systems contract revenues which also included a higher sub-consultant content when compared to the prior year period.
Operating expenses during the current fiscal quarter were $4.7 million, representing a decrease of approximately 8 percent from $5.2 million reported in the same quarter of the prior fiscal year and a decline of approximately 10 percent from the December 31, 2008 quarter.
The Company reported operating income of $1.1 million and net income of $8.0 million, or $0.23 per fully diluted share, for the quarter ended March 31, 2009 compared to operating income of $2.3 million and net income of $7.9 million, or $0.23 per fully diluted share, in the same quarter of the prior fiscal year. In both the current and prior year quarters, net income was positively affected by income tax benefits of approximately $7.0 million and $5.7 million, respectively, generated through the release of valuation allowance against certain deferred tax assets.
For the fiscal year ended March 31, 2009, net sales and contract revenues were $69.4 million, representing an increase of 6.4 percent compared to net sales and contract revenues of $65.2 million in the prior fiscal year. The Company reported operating income of $5.7 million and net income of $10.5 million, or $0.30 per fully diluted share, for the fiscal year ended March 31, 2009 compared to operating income of $7.3 million and net income of $12.2 million, or $0.35 per fully diluted share, in the prior fiscal year.
Abbas Mohaddes, the Company's president and chief executive officer, commented, “We faced a challenging economic environment, particularly in the first part of our fourth quarter where we experienced a decline in product orders. However, Iteris was successful in continuing its profitability for the fourth quarter and for the full year, demonstrating careful expense management and attention to operating efficiency. We continued to innovate, launch new products, open important new markets, and reinforce our competitive position as the leader in traffic management. I remain bullish on the long-term prospects for the Traffic Management products and services and I believe Iteris is well-positioned and poised to benefit from ongoing efforts to reduce congestion. Our Transportation Systems group reported 24 percent year-over-year growth and expanded its backlog approximately 40 percent to $34.5 million as of the end of the fiscal year. In addition, we expect to participate in a significant number of projects funded in the Federal stimulus package, as we provide proven value through our services and products in roadway and transit design, construction support, and transportation system management. I also believe that Iteris is well-positioned to succeed during these challenging times due to our strong balance sheet and consistent profitability.”
The Company ended the current quarter with approximately $6.4 million in cash on hand and no borrowings on its $12.0 million working capital line of credit. On March 31, 2009, there were 34.2 million shares of common stock outstanding.
“We ended this fiscal year in the strongest financial position in Company history.” Mr. Mohaddes continued, “We plan to continue to focus on strengthening our balance sheet, improving our working capital position, and growing our operating cash flows. I’m pleased that our cash balances, as of the end of the quarter and in the weeks since, have remained strong. We believe the weakness in the U.S. and global economies continues to impact our product sales, but we also believe that the demand for Iteris’ products and services remains robust. We plan to continue our investment in R&D which should result in the introduction of several new innovative and attractive products in the coming quarters. In addition, we will continue to invest in sales and marketing which we expect will expand our addressable markets and further penetrate new geographic regions, while remaining carefully focused on preserving ongoing profitability, to further strengthen our leadership position in the traffic management market.”
As previously announced, the Company will conduct a conference call with analysts and investors to discuss the financial results for the fourth quarter ended March 31, 2009 today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The Company will broadcast the conference call over the Internet. To listen to the webcast please visit the Investor Relations page on Company’s website at ITERIS. The webcast will be recorded and available for replay until Thursday, June 11, 2009.