Free 7-day Trial
All Articles and Columns »

Itron Inc. Reports Operating Results (10-Q)

August 06, 2012 | About:
10qk

10qk

18 followers
Itron Inc. (ITRI) filed Quarterly Report for the period ended 2012-06-30.

Itron, Inc. has a market cap of $1.69 billion; its shares were traded at around $42.58 with a P/E ratio of 10.1 and P/S ratio of 0.7. Itron, Inc. had an annual average earning growth of 14.3% over the past 10 years. GuruFocus rated Itron, Inc. the business predictability rank of 3.5-star.

Highlight of Business Operations:

Revenues for the three and six months ended June 30, 2012 were $579 million and $1.2 billion, compared with $612 million and $1.2 billion for the same periods last year. Fluctuations in foreign currency exchange rates unfavorably impacted revenues by $35 million and $48 million for the three and six months ended June 30, 2012. Aside from the foreign currency translation impact,

revenues increased during these same periods in 2012 due to growth in OpenWay projects and the Water operating segment, offset by decreases in Gas revenue. Gross margin for the second quarter of 2012 was 34.0%, compared with a gross margin of 31.3% for the same period last year. Gross margin for the six months ended June 30, 2012 was 33.0% compared with a gross margin of 32.0% for the corresponding period in 2011. Reduced warranty costs contributed to the gross margin improvement by 1.6 percentage points for the quarter and 0.3 percentage points for the six month period in 2012. Operating expenses increased 5% during the second quarter of 2012, compared with the same period last year, and 6% for the six months ended June 30, 2012 compared with the same period in 2011, primarily due to increased sales and marketing and product development expenses associated with expansion of our sales efforts in developing markets and investment in new and enhanced products, as well as increased restructuring expenses.

Revenues decreased $33.3 million and $25.3 million, or 5% and 2%, for the three and six months ended June 30, 2012, compared with the same periods last year. The net translation effect of our operations denominated in foreign currencies resulted in an unfavorable impact to revenues of $35.1 million and $47.6 million for the three and six months ended June 30, 2012, compared with the same periods in 2011. Aside from the foreign currency translation impact, revenues increased for the three and six months ended June 30, 2012, driven by increased OpenWay project revenue in North America and growth in the Water segment, offset by a decrease in Gas revenue. A more detailed analysis of these fluctuations is provided in Operating Segment Results.

Energy operating expenses increased $2.6 million, or 3%, for the three months ended June 30, 2012, compared with the same period last year, primarily due to increased sales and marketing and product development costs for development of new and enhanced products, as well as $2.2 million in restructuring expense. These increases were offset by scheduled decreases in amortization of intangible assets and the foreign currency translation impact of $5.6 million. Operating expenses as a percentage of revenues were 23% for the three months ended June 30, 2012, compared with 21% for the same period last year. Operating expenses related to SmartSynch were $4.7 million subsequent to the acquisition on May 1, 2012.

Operating expenses increased $6.8 million and $15.4 million for the three and six months ended June 30, 2012, compared with the same periods last year, primarily due to increased sales and marketing and product development costs for development of new and enhanced products, acquisition related expenses for the SmartSynch acquisition of $900,000 and $2.9 million, and increased restructuring expenses of $5.8 million and $6.6 million for the three and six months ended June 30, 2012. In addition, we incurred approximately $660,000 and $2.8 million during the second quarter and the first half of 2012 for management training and development costs in connection with the implementation of our new organization and for preliminary planning costs, prior to application development, for our global ERP software initiative that we expect to commence in the second half of 2012. These increases were partially offset by a scheduled decrease in amortization of intangible assets of $4.2 million and $7.9 million for the second quarter and first half of 2012. Foreign currency translation favorably impacted operating expenses by $8.4 million and $11.5 million for the three and six months ended June 30, 2012.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide