| [June 03, 2019] |
 |
Iteris Reports Record Fourth Quarter Revenue of $26.1 Million
Iteris,
Inc. (NASDAQ: ITI), the global leader in applied informatics for
transportation and agriculture, today reported financial results for its
fiscal fourth quarter and full year ended March 31, 2019.
Fiscal Fourth Quarter 2019 Financial Highlights
-
Record total revenue of $26.1 million, up 3.2% year over year and
12.8% sequentially
-
Total net bookings of $24.1 million, up 64.2% year over year and 12.5%
sequentially
-
Transportation Systems revenue of $12.9 million, down 1.1% year over
year and up 14.2% sequentially
-
Agriculture and Weather Analytics revenue of $1.7 million, up 22.9%
year over year and 10.0% sequentially
-
Roadway Sensors revenue of $11.4 million, up 6.0% year over year and
11.6% sequentially
Fiscal Full Year 2019 Financial Highlights
-
Total revenue of $99.1 million, down 4.4% year over year
-
Total net bookings of $107.1 million, up 23.5% year over year
-
Transportation Systems revenue of $49.8 million, down 8.6% year over
year
-
Agriculture and Weather Analytics revenue of $5.8 million, up 18.9%
year over year
-
Roadway Sensors revenue of $43.5 million, down 2.0% year over year
Management commentary
"We are pleased to resume growth and report record fourth quarter
revenue," said Joe Bergera, president and CEO. "We began fiscal year
2019 with atypical headwinds due to structural changes to two of our
largest customer contracts, which masked the underlying strength of our
business model. At this time, we have largely retired those headwinds
and expect the business to normalize in fiscal year 2020."
"During fiscal year 2019, Iteris continued to introduce innovative new
solutions to capitalize on favorable secular trends in both our markets
- smart transportation and digital agriculture. As a result, our total
fiscal year 2019 net bookings increased 23.5% to $107 million. The
demonstrated demand for our products and services is further
confirmation that our business fundamentals are solid and aligned with
market trends."
GAAP Fiscal Fourth Quarter 2019 Financial Results
Total revenue in the fourth quarter of fiscal 2019 increased 3.2% to
$26.1 million compared with $25.3 million in the same quarter a year
ago. The fourth quarter saw increases of 22.9% in Agriculture and
Weather Analytics and 6.0% in Roadway Sensors. This was offset by a
decrease of 1.1% in Transportation Systems.
Operating expenses in the fourth quarter were $12.3 million, compared
with $12.8 million in the same quarter a year ago. The decrease was
primarily due to the absence of costs related to the restructuring of
our Agriculture and Weather Analytics segment sales organization to
support the segment's updated go-to-market strategy, which took place in
the fourth quarter of fiscal 2018.
Operating loss in the fourth quarter was $2.5 million, compared with an
operating loss of $2.8 million in the same quarter a year ago. Net loss
in the fourth quarter was $2.4 million, or ($0.07) per share, compared
with a net loss of $2.4 million, or ($0.07) per share in the year-ago
quarter.
GAAP Fiscal 2019 Full Year Financial Results
Total revenue in fiscal 2019 decreased 4.4% to $99.1 million, compared
with $103.7 million in fiscal 2018. The decrease was driven primarily by
an 8.6% decrease in Transportation Systems, and a 2.0% decrease in
Roadway Sensors year over year. This was slightly offset by an 18.9%
increase Agriculture and Weather Analytics year over year.
Operating expenses for fiscal year 2019 were $46.6 million, compared
with $45.4 million for the previous year period. The increase was
primarily due to an increase in business development costs aimed at the
pursuit of large contracts in the Transportation Systems segment.
Operating loss in fiscal 2019 was $8.0 million, compared with an
operating loss of $5.6 million in fiscal 2018. Net loss in fiscal 2019
was approximately $7.8 million, or ($0.23) per share, compared with net
loss of approximately $3.5 million, or ($0.11) per share, in fiscal
2018, primarily driven by the passage of new tax legislation known as
the Tax Cuts and Jobs Act, which provided an income tax benefit of $1.7
million in fiscal 2018.
Non-GAAP Fiscal Q4 2019 Financial Results
In addition to results presented in accordance with generally accepted
accounting principles in the United States ("GAAP"), the company has
included the following non-GAAP financial measures: non-GAAP operating
expenses, non-GAAP operating loss, non-GAAP net loss and non-GAAP basic
and diluted net loss per share. These non-GAAP financial measures
exclude the following items: (a) stock-based compensation; (b)
depreciation; (c) amortization; (d) Agriculture and Weather Analytics
segment realignment; (e) loss on impairment of goodwill; (f) the
estimated tax effect of the foregoing non-GAAP adjustments; and (g) the
impact of the Tax Act. A discussion of the company's use of these
non-GAAP financial measures is set forth below in the financial
statements portion of this release under the heading "Non-GAAP Financial
Measures and Reconciliation," which also includes a reconciliation of
such non-GAAP financial measures to their most comparable GAAP financial
measures for the three and 12 months ended March 31, 2019, 2018 and 2017.
Non-GAAP operating expenses in the fourth quarter was relatively
consistent at $11.5 million, compared with $11.6 million in the same
quarter a year ago. Non-GAAP operating loss in the fourth quarter was
relatively consistent at $1.4 million, compared with an operating loss
of $1.4 million in the same quarter a year ago. Non-GAAP net loss in the
fourth quarter was approximately $1.3 million, or ($0.04) per share,
compared with a net loss of approximately $1.4 million, or ($0.04) per
share, in the same quarter a year ago.
Non-GAAP Fiscal 2019 Full Year Financial Results
Non-GAAP operating expenses in fiscal 2019 were $43.3 million, compared
with $42.2 million in fiscal 2018. The increase was primarily
attributable to an increase in business development costs aimed at the
pursuit of large contracts in the Transportation Systems segment.
Non-GAAP net loss for fiscal 2019 was approximately $3.7 million or
$(0.11) per share, compared with a net loss of approximately $1.4
million, or $(0.04) per share, for fiscal 2018.
Earnings Conference Call
Iteris will conduct a conference call today to discuss its fiscal fourth
quarter and full year 2019 results.
Date: Monday, June 3, 2019
Time: 4:30 p.m. Eastern
time (1:30 p.m. Pacific Time)
Toll-free dial-in number: 1-888-204-4368
International
dial-in number: +1 720-543-0214
Conference ID: 5091277
To listen to the live or archived webcast of the earnings call or to
view the press release, please visit the investor
relations section of the Iteris website at www.iteris.com.
A replay of the conference call will be available after 7:30 p.m.
Eastern time on the same day through June 10, 2019. To access the replay
dial information, please click here.
About Iteris, Inc.
Iteris is the global leader in applied informatics for transportation
and agriculture, turning big data into big breakthrough solutions. We
collect, aggregate and analyze data on traffic, roads, weather, water,
soil and crops to generate precise informatics that lead to safer
transportation and smarter farming. Municipalities, government agencies,
crop science companies, farmers and agronomists around the world use our
solutions to make roads safer and travel more efficient, as well as
farmlands more sustainable, healthy and productive. Visit www.iteris.com for
more information and join the conversation on Twitter, LinkedIn and Facebook.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995:
This release may contain forward-looking statements, which speak only as
of the date hereof and are based upon our current expectations and the
information available to us at this time. Words such as "believes,"
"anticipates," "expects," "intends," "plans," "seeks," "estimates,"
"may," "will," "can," and variations of these words or similar
expressions are intended to identify forward-looking statements. These
statements include, but are not limited to, statements about the
Company's anticipated growth opportunities, the impact of the impact and
success of new product introductions and acquisitions, our future
performance, growth and profitability, operating results, financial
condition and prospects, and new management team. Such statements are
subject to certain risks, uncertainties, and assumptions that are
difficult to predict and actual results could differ materially and
adversely from those expressed in any forward-looking statements as a
result of various factors.
Important factors that may cause such a difference include, but are not
limited to, federal, state and local government budgetary issues,
spending policy changes, constraints and delays; the timing and amount
of government funds allocated to overall transportation infrastructure
projects and the transportation industry; the potential unforeseen
impact of product and service offerings from competitors, increased
competition in certain market segments and other competitive pressures;
our ability to secure additional Transportation Systems consulting
contracts and successfully complete such contracts on a timely and
cost-effective basis; our ability to specify, develop, complete,
introduce, market and gain broad acceptance of our new and existing
products and technologies the timing and successful completion of
customer qualification of our products and the risks of
non-qualification; the availability of components used in the
manufacture of certain of our products; the effectiveness of efficiency,
cost, and expense reduction efforts; our ability to successfully
identify, complete and integrate acquisitions of products, technologies
and companies; our ability to retain, integrate and incentivize our new
management team and their ability to shape the strategic direction of
the company and implement change; risks related to our ability to
recruit and/or retain key talent; the potential impact of product and
service offerings from competitors and such competitors' patent coverage
and claims; any softness in the markets that we address, and the impact
of general economic and political conditions and specific conditions in
the markets we address, and the possible disruption in government
spending and commercial activities related to terrorist activity or
armed conflict in the United States and internationally. Further
information on Iteris, Inc., including additional risk factors that may
affect our forward-looking statements, as contained in our Annual Report
on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on
Form 8-K, and our other SEC filings that are available through the SEC's
website (www.sec.gov).
|
|
|
ITERIS, INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands)
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
Cash
|
|
$
|
7,071
|
|
$
|
10,152
|
|
Short-term investments
|
|
|
1,935
|
|
|
5,319
|
|
Trade accounts receivable, net
|
|
|
16,929
|
|
|
12,866
|
|
Unbilled accounts receivable
|
|
|
6,487
|
|
|
7,473
|
|
Inventories
|
|
|
2,916
|
|
|
2,921
|
|
Prepaid expenses and other current assets
|
|
|
1,367
|
|
|
1,165
|
|
Total current assets
|
|
|
36,705
|
|
|
39,896
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,965
|
|
|
2,333
|
|
Intangible assets, net
|
|
|
3,286
|
|
|
3,751
|
|
Goodwill
|
|
|
15,150
|
|
|
15,150
|
|
Other assets
|
|
|
849
|
|
|
1,756
|
|
Total assets
|
|
$
|
57,955
|
|
$
|
62,886
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
9,441
|
|
$
|
7,838
|
|
Accrued payroll and related expenses
|
|
|
6,536
|
|
|
7,398
|
|
Accrued liabilities
|
|
|
2,370
|
|
|
2,358
|
|
Deferred revenue
|
|
|
4,883
|
|
|
4,900
|
|
Total current liabilities
|
|
|
23,230
|
|
|
22,494
|
|
Long-term liabilities
|
|
|
670
|
|
|
871
|
|
Total liabilities
|
|
|
23,900
|
|
|
23,365
|
|
Stockholders' equity
|
|
|
34,055
|
|
|
39,521
|
|
Total liabilities and stockholders' equity
|
|
$
|
57,955
|
|
$
|
62,886
|
|
|
|
|
|
|
|
|
|
|
|
ITERIS, INC.
|
|
UNAUDITED CONSOLIDATED
|
|
STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
12,809
|
|
|
$
|
10,844
|
|
|
$
|
48,227
|
|
|
$
|
46,464
|
|
|
Service revenues
|
|
|
13,282
|
|
|
|
14,429
|
|
|
|
50,896
|
|
|
|
57,265
|
|
|
Total revenues
|
|
|
26,091
|
|
|
|
25,273
|
|
|
|
99,123
|
|
|
|
103,729
|
|
|
Cost of product revenues
|
|
|
8,224
|
|
|
|
6,195
|
|
|
|
28,434
|
|
|
|
26,633
|
|
|
Cost of service revenues
|
|
|
8,006
|
|
|
|
9,062
|
|
|
|
32,083
|
|
|
|
37,265
|
|
|
Total cost of revenues
|
|
|
16,230
|
|
|
|
15,257
|
|
|
|
60,517
|
|
|
|
63,898
|
|
|
Gross profit
|
|
|
9,861
|
|
|
|
10,016
|
|
|
|
38,606
|
|
|
|
39,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
10,311
|
|
|
|
10,452
|
|
|
|
38,471
|
|
|
|
37,400
|
|
|
Research and development
|
|
|
1,931
|
|
|
|
2,391
|
|
|
|
7,819
|
|
|
|
7,945
|
|
|
Amortization of intangible assets
|
|
|
84
|
|
|
|
4
|
|
|
|
275
|
|
|
|
88
|
|
|
Total operating expenses
|
|
|
12,326
|
|
|
|
12,847
|
|
|
|
46,565
|
|
|
|
45,433
|
|
|
Operating loss
|
|
|
(2,465
|
)
|
|
|
(2,831
|
)
|
|
|
(7,959
|
)
|
|
|
(5,602
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
9
|
|
|
|
(3
|
)
|
|
|
50
|
|
|
|
(16
|
)
|
|
Interest income, net
|
|
|
39
|
|
|
|
23
|
|
|
|
129
|
|
|
|
32
|
|
|
Loss from continuing operations before income taxes
|
|
|
(2,417
|
)
|
|
|
(2,811
|
)
|
|
|
(7,780
|
)
|
|
|
(5,586
|
)
|
|
Benefit for income taxes
|
|
|
(15
|
)
|
|
|
411
|
|
|
|
(36
|
)
|
|
|
1,818
|
|
|
Loss from continuing operations
|
|
|
(2,432
|
)
|
|
|
(2,400
|
)
|
|
|
(7,816
|
)
|
|
|
(3,768
|
)
|
|
Gain on sale of discontinued operation, net of tax
|
|
|
-
|
|
|
|
(16
|
)
|
|
|
-
|
|
|
|
242
|
|
|
Net loss
|
|
$
|
(2,432
|
)
|
|
$
|
(2,416
|
)
|
|
$
|
(7,816
|
)
|
|
$
|
(3,526
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted
|
|
$
|
(0.07
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
(0.12
|
)
|
|
Gain per share from sale of discontinued operation -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted
|
|
$
|
-
|
|
|
$
|
(0.00
|
)
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
Net loss per share - basic and diluted
|
|
|
(0.07
|
)
|
|
|
(0.07
|
)
|
|
|
(0.23
|
)
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in basic per share calculations
|
|
|
33,358
|
|
|
|
33,093
|
|
|
|
33,266
|
|
|
|
32,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted per share calculations
|
|
|
33,358
|
|
|
|
33,093
|
|
|
|
33,266
|
|
|
|
32,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITERIS, INC.
|
|
UNAUDITED SEGMENT REPORTING DETAILS
|
|
(in thousands)
|
|
|
|
|
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
|
|
|
|
Sensors
|
|
Systems
|
|
Analytics
|
|
Iteris, Inc.
|
|
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
11,327
|
|
$
|
1,482
|
|
$
|
-
|
|
|
$
|
12,809
|
|
|
Service revenues
|
|
|
94
|
|
|
11,457
|
|
|
1,731
|
|
|
|
13,282
|
|
|
Total revenues
|
|
$
|
11,421
|
|
$
|
12,939
|
|
$
|
1,731
|
|
|
$
|
26,091
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income (loss)
|
|
$
|
1,548
|
|
$
|
1,631
|
|
$
|
(1,155
|
)
|
|
$
|
2,024
|
|
|
Corporate and other income (expense), net
|
|
|
|
|
|
|
|
|
(4,357
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(84
|
)
|
|
Loss from continuing operations
before income taxes
|
|
|
|
|
|
|
|
$
|
(2,417
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
|
|
|
|
Sensors
|
|
Systems
|
|
Analytics
|
|
Iteris, Inc.
|
|
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
10,725
|
|
$
|
119
|
|
$
|
-
|
|
|
$
|
10,884
|
|
|
Service revenues
|
|
|
49
|
|
|
12,971
|
|
|
1,409
|
|
|
|
14,429
|
|
|
Total revenues
|
|
$
|
10,774
|
|
$
|
13,090
|
|
$
|
1,409
|
|
|
$
|
25,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income (loss)
|
|
$
|
1,442
|
|
$
|
2,169
|
|
$
|
(2,165
|
)
|
|
$
|
1,447
|
|
|
Corporate and other income (expense), net
|
|
|
|
|
|
|
|
|
(4,254
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
Loss from continuing operations
before income taxes
|
|
|
|
|
|
|
|
$
|
(2,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
|
|
|
|
Sensors
|
|
Systems
|
|
Analytics
|
|
Iteris, Inc.
|
|
Twelve Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
43,253
|
|
$
|
4,974
|
|
$
|
-
|
|
|
$
|
48,227
|
|
|
Service revenues
|
|
|
239
|
|
|
44,841
|
|
|
5,816
|
|
|
|
50,896
|
|
|
Total revenues
|
|
$
|
43,492
|
|
$
|
49,815
|
|
$
|
5,816
|
|
|
$
|
99,123
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income (loss)
|
|
$
|
7,011
|
|
$
|
5,907
|
|
$
|
(5,024
|
)
|
|
$
|
7,894
|
|
|
Corporate and other income (expense), net
|
|
|
|
|
|
|
|
|
(15,399
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(275
|
)
|
|
Loss from continuing operations
before income taxes
|
|
|
|
|
|
|
|
$
|
(7,780
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roadway
|
|
Transportation
|
|
Ag & Weather
|
|
|
|
|
|
Sensors
|
|
Systems
|
|
Analytics
|
|
Iteris, Inc.
|
|
Twelve Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
44,163
|
|
$
|
2,301
|
|
$
|
-
|
|
|
$
|
46,464
|
|
|
Service revenues
|
|
|
194
|
|
|
52,180
|
|
|
4,891
|
|
|
|
57,265
|
|
|
Total revenues
|
|
$
|
44,357
|
|
$
|
54,481
|
|
$
|
4,891
|
|
|
$
|
103,729
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating income (loss)
|
|
$
|
8,825
|
|
$
|
8,639
|
|
$
|
(8,048
|
)
|
|
$
|
9,416
|
|
|
Corporate and other income (expense), net
|
|
|
|
|
|
|
|
|
(14,914
|
)
|
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(88
|
)
|
|
Loss from continuing operations before income taxes
|
|
|
|
|
|
|
|
$
|
(5,586
|
)
|
|
|
|
|
|
|
|
|
|
|
ITERIS, INC.
Non-GAAP Financial Measures and
Reconciliation
In addition to results presented in accordance with GAAP, the Company
has included the following non-GAAP financial measures in this release:
non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP
net income and non-GAAP basic and diluted earnings per share from
continuing operations. These non-GAAP financial measures exclude the
following items: (a) stock-based compensation; (b) depreciation; (c)
amortization; (d) Agriculture and Weather Analytics segment realignment;
(e) loss on impairment of goodwill; (f) the estimated tax effect of the
foregoing non-GAAP adjustments; and (g) the impact of the Tax Act .
Iteris believes that the presentation of these non-GAAP financial
measures provides important supplemental information to management and
investors regarding financial and business trends relating to its
financial condition and results of operations. Iteris' management
believes that the use of these non-GAAP financial measures provides
consistency and comparability among and between results from prior
periods or forecasts and future prospects, and also facilitates
comparisons with other companies in its industry. The company's
management believes that the exclusion of the items described above
provides insight into core operating results, the ability to generate
cash and underlying business trends affecting performance. Iteris has
chosen to provide this information to investors to enable them to
perform additional analysis of past, present and future operating
performance, and as a supplemental means to evaluate ongoing core
operations.
Management uses certain non-GAAP financial measures internally for
strategic decision making, forecasting future results and evaluating
current performance. Non-GAAP financial measures are not prepared in
accordance with GAAP; therefore, the information is not necessarily
comparable to other companies' financial information and should be
considered as a supplement to, not a substitute for, or superior to, the
corresponding financial measures calculated in accordance with GAAP.
Details of the items excluded from GAAP financial results in calculating
non-GAAP financial measures and explanatory footnotes are as follows:
|
a)
|
|
Iteris excludes stock-based compensation expenses from its non-GAAP
financial measures primarily because they are non-cash expenses and
management finds it useful to exclude certain non-cash charges to
assess the appropriate level of various operating expenses to assist
in budgeting, planning and forecasting future periods. Moreover,
because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use
under FASB ASC Topic 718, Iteris believes excluding stock-based
compensation expenses allows investors to make meaningful
comparisons between our recurring core business operating results
and those of other companies.
|
|
b)
|
|
Iteris excludes depreciation expenses from its non-GAAP financial
measures. Management finds it useful to exclude these charges to
assess the appropriate level of various operating expenses to assist
in budgeting, planning and forecasting future periods.
|
|
c)
|
|
Iteris incurs amortization of developed technology and purchased
intangibles in connection with acquisitions of certain businesses
and technologies. Amortization of developed technologies and
purchased intangibles is inconsistent in amount and frequency, and
is significantly affected by the timing and size of our developments
and acquisitions. Management finds it useful to exclude these
variable charges from our cost of revenues and operating expenses to
assist in budgeting, planning and forecasting future periods.
Investors should note that the use of intangible assets contributed
to our revenues earned during the periods presented and will
contribute to our future period revenues as well. Amortization of
developed technologies and purchased intangible assets will recur in
future periods.
|
|
d)
|
|
These expenses are associated with realigning our business
strategies related to our Agriculture and Weather Analytics segment
based on current economic conditions. In connection with these
realignment actions, Iteris recognizes costs primarily related to
termination benefits for former employees whose positions were
eliminated. Iteris excludes these charges because these expenses are
not reflective of ongoing business and operating results. Iteris
believes it is useful for investors to understand the effects of
these items on our total operating expenses.
|
|
e)
|
|
As a result of the company's annual goodwill impairment test for
Fiscal 2017, management concluded that the carrying value of
goodwill related to legacy acquisitions by our Agriculture and
Weather Analytic reporting unit exceeded its fair value. This
resulted in an approximately $2.2 million impairment charge in the
fourth quarter of Fiscal 2017.
|
|
f)
|
|
The amount represents the estimated income tax effect of the
non-GAAP adjustments. The tax effect of non-GAAP adjustments for the
three and nine months ended December 31, 2018 and 2017 were
calculated by applying an estimated tax rate of 1% to each specific
non-GAAP item, due to the impact of the valuation allowance on our
effective tax rate in those years.
|
|
g)
|
|
The Tax Act was enacted on December 22, 2017 and resulted in a tax
benefit of approximately $1.7 million, primarily due to the refund
of Alternative Minimum Tax credit carryforwards, as well as a
reduction of the U.S. corporate income tax rates to 21.0% as of
January 1, 2018, which reduced our valuation allowance.
|
|
|
|
|
|
|
|
Iteris, Inc.
|
|
Schedule Reconciling GAAP Net Loss to Non-GAAP Net Loss
|
|
($ in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(2,432
|
)
|
|
$
|
(2,416
|
)
|
|
$
|
(3,368
|
)
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share - basic and diluted
|
|
$
|
(0.07
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
The non-GAAP amounts have been adjusted to exclude the following
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluded from cost of revenues:
|
|
|
|
|
|
|
|
Amortization (c)
|
|
$
|
218
|
|
|
$
|
197
|
|
|
$
|
77
|
|
|
|
|
|
|
|
|
|
|
Excluded from operating expenses:
|
|
|
|
|
|
|
|
Stock based compensation (a)
|
|
$
|
601
|
|
|
$
|
457
|
|
|
$
|
258
|
|
|
Depreciation (b)
|
|
|
192
|
|
|
|
226
|
|
|
|
185
|
|
|
Amortization (c)
|
|
|
84
|
|
|
|
4
|
|
|
|
33
|
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
547
|
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
2,168
|
|
|
Total excluded from operating expenses
|
|
$
|
877
|
|
|
$
|
1,234
|
|
|
$
|
2,644
|
|
|
|
|
|
|
|
|
|
|
Total excluded operating loss
|
|
$
|
1,095
|
|
|
$
|
1,431
|
|
|
$
|
2,721
|
|
|
|
|
|
|
|
|
|
|
Income tax effect on non-GAAP adjustments (f)
|
|
|
(11
|
)
|
|
|
(14
|
)
|
|
|
(27
|
)
|
|
Total excluded from operating loss after income tax effect
|
|
$
|
1,084
|
|
|
$
|
1,417
|
|
|
$
|
2,694
|
|
|
|
|
|
|
|
|
|
|
Excluded from income tax benefit
|
|
|
|
|
|
|
|
Impact of Tax Act (g)
|
|
|
-
|
|
|
|
(383
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
|
|
$
|
(1,348
|
)
|
|
$
|
(1,382
|
)
|
|
$
|
(674
|
)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share - basic and diluted
|
|
$
|
(0.04
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
(a) - (g) See corresponding footnotes above.
|
|
|
|
|
|
|
|
|
|
Iteris, Inc.
|
|
Schedule Reconciling GAAP Net Loss to Non-GAAP Net (Loss) Income
|
|
($ in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
For the Twelve Months Ended
|
|
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
$
|
(7,816
|
)
|
|
$
|
(3,526
|
)
|
|
$
|
(4,826
|
)
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share - basic and diluted
|
|
$
|
(0.23
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
The non-GAAP amounts have been adjusted to exclude the following
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluded from cost of revenues:
|
|
|
|
|
|
|
|
Amortization (c)
|
|
$
|
850
|
|
|
$
|
638
|
|
|
$
|
341
|
|
|
|
|
Excluded from operating expenses
|
|
|
|
|
|
|
|
Stock based compensation (a)
|
|
$
|
2,156
|
|
|
$
|
1,781
|
|
|
$
|
975
|
|
|
Depreciation (b)
|
|
|
851
|
|
|
|
819
|
|
|
|
729
|
|
|
Amortization (c)
|
|
|
275
|
|
|
|
88
|
|
|
|
282
|
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
547
|
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
2,168
|
|
|
Total excluded from operating expenses
|
|
$
|
3,282
|
|
|
$
|
3,235
|
|
|
$
|
4,154
|
|
|
|
|
|
|
|
|
|
|
Total excluded operating loss
|
|
$
|
4,132
|
|
|
$
|
3,873
|
|
|
$
|
4,495
|
|
|
|
|
|
|
|
|
|
|
Income tax effect on non-GAAP adjustments (f)
|
|
|
(41
|
)
|
|
|
(39
|
)
|
|
|
(45
|
)
|
|
Total excluded from operating loss after income tax effect
|
|
$
|
4,091
|
|
|
$
|
3,834
|
|
|
$
|
4,450
|
|
|
|
|
|
|
|
|
|
|
Excluded from income tax expenses
|
|
|
|
|
|
|
|
Impact of Tax Act (g)
|
|
|
-
|
|
|
|
(1,742
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
|
|
$
|
(3,725
|
)
|
|
$
|
(1,434
|
)
|
|
$
|
(376
|
)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share - basic and diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
(a) - (g) See corresponding footnotes above.
|
|
|
|
|
|
|
|
|
|
Iteris, Inc.
|
|
Schedule Reconciling GAAP Operating (Loss) to Non-GAAP Operating
(Loss) Income
|
|
($ in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
GAAP cost of revenues
|
|
$
|
16,230
|
|
|
$
|
15,257
|
|
|
$
|
15,386
|
|
|
Amortization (c)
|
|
|
(218
|
)
|
|
|
(197
|
)
|
|
|
(77
|
)
|
|
Non-GAAP cost of revenues
|
|
$
|
16,012
|
|
|
$
|
15,060
|
|
|
$
|
15,309
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
12,326
|
|
|
$
|
12,847
|
|
|
$
|
13,406
|
|
|
Stock based compensation (a)
|
|
|
(601
|
)
|
|
|
(457
|
)
|
|
|
(258
|
)
|
|
Depreciation (b)
|
|
|
(192
|
)
|
|
|
(226
|
)
|
|
|
(185
|
)
|
|
Amortization (c)
|
|
|
(84
|
)
|
|
|
(4
|
)
|
|
|
(33
|
)
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
(547
|
)
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,168
|
)
|
|
Non-GAAP operating expenses
|
|
$
|
11,449
|
|
|
$
|
11,613
|
|
|
$
|
10,762
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
$
|
(2,465
|
)
|
|
$
|
(2,831
|
)
|
|
$
|
(3,488
|
)
|
|
Stock based compensation (a)
|
|
|
(601
|
)
|
|
|
(457
|
)
|
|
|
(258
|
)
|
|
Depreciation (b)
|
|
|
(192
|
)
|
|
|
(226
|
)
|
|
|
(185
|
)
|
|
Amortization (c)
|
|
|
(302
|
)
|
|
|
(201
|
)
|
|
|
(110
|
)
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
(547
|
)
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,168
|
)
|
|
Non-GAAP operating loss
|
|
$
|
(1,370
|
)
|
|
$
|
(1,400
|
)
|
|
$
|
(767
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Iteris, Inc.
|
|
Schedule Reconciling GAAP Operating (Loss) to Non-GAAP Operating
(Loss) Income
|
|
($ in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
For the Twelve Months Ended
|
|
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
GAAP cost of revenues
|
|
$
|
60,517
|
|
|
$
|
63,898
|
|
|
$
|
58,580
|
|
|
Amortization (c)
|
|
|
(850
|
)
|
|
|
(638
|
)
|
|
|
(341
|
)
|
|
Non-GAAP cost of revenues
|
|
$
|
59,667
|
|
|
$
|
63,260
|
|
|
$
|
58,239
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
46,565
|
|
|
$
|
45,433
|
|
|
$
|
42,638
|
|
|
Stock based compensation (a)
|
|
|
(2,156
|
)
|
|
|
(1,781
|
)
|
|
|
(975
|
)
|
|
Depreciation (b)
|
|
|
(851
|
)
|
|
|
(819
|
)
|
|
|
(729
|
)
|
|
Amortization (c)
|
|
|
(275
|
)
|
|
|
(88
|
)
|
|
|
(282
|
)
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
(547
|
)
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,168
|
)
|
|
Non-GAAP operating expenses
|
|
$
|
43,283
|
|
|
$
|
42,198
|
|
|
$
|
38,484
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
$
|
(7,959
|
)
|
|
$
|
(5,602
|
)
|
|
$
|
(5,236
|
)
|
|
Stock based compensation (a)
|
|
|
(2,156
|
)
|
|
|
(1,781
|
)
|
|
|
(975
|
)
|
|
Depreciation (b)
|
|
|
(851
|
)
|
|
|
(819
|
)
|
|
|
(729
|
)
|
|
Amortization (c)
|
|
|
(1,125
|
)
|
|
|
(726
|
)
|
|
|
(623
|
)
|
|
Agriculture and Weather Analytics segment realignment (d)
|
|
|
-
|
|
|
|
(547
|
)
|
|
|
-
|
|
|
Loss on impairment of Goodwill (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,168
|
)
|
|
Non-GAAP operating loss
|
|
$
|
(3,827
|
)
|
|
$
|
(1,729
|
)
|
|
$
|
(741
|
)
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190603005189/en/
[ Back To TMCnet.com's Homepage ]
|
