Itron Inc. has a market cap of $1.69 billion; its shares were traded at around $48.23 with a P/E ratio of 10.2 and P/S ratio of 0.8. Itron Inc. had an annual average earning growth of 16.7% over the past 10 years. GuruFocus rated Itron Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:Bookings for a reported period represent customer contracts and purchase orders received during the period that have met certain conditions, such as regulatory and/or contractual approval. Total backlog represents committed but undelivered contracts and purchase orders at period-end. Twelve-month backlog represents the portion of total backlog that we estimate will be recognized as revenue over the next 12 months. Backlog is not a complete measure of our future revenues as we also receive significant book-and-ship orders. Bookings and backlog may fluctuate significantly due to the timing of large project awards. In addition, annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. Beginning total backlog, plus bookings, minus revenues, will not equal ending total backlog due to miscellaneous contract adjustments, foreign currency fluctuations, and other factors.
No single customer represented more than 10% of total revenues for the years ended December 31, 2011 and 2009. One customer, Southern California Edison, of our Itron North America operating segment, represented 11% of total Company revenues for the year ended December 31, 2010. Our 10 largest customers in each of the years ended December 31, 2011, 2010, and 2009 accounted for approximately 33%, 34%, and 17%, of total revenues, respectively.
Our product development is focused on both improving existing technology and developing next-generation technology for electricity, natural gas, water, and heat meters, data collection software, communications technologies, data warehousing, and knowledge application solutions. We spent approximately $163 million, $140 million, and $122 million on product development in 2011, 2010, and 2009, which represented 7%, 6%, and 7% of total revenues in those respective years.
Revenues increased 8% in 2011, compared with 2010. The revenue growth was driven by Itron International with a 15% increase in revenues in 2011, compared with 2010, while Itron North America contributed a 1% increase on revenues of $1.2 billion. Revenues increased 34% in 2010, compared with 2009, primarily due to the deployment of our smart metering contracts in Itron North America. Total backlog was $1.3 billion, and twelve-month backlog was $766 million at December 31, 2011.
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