Itron Inc. (ITRI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Itron Inc. has a market cap of $2.43 billion; its shares were traded at around $60.19 with a P/E ratio of 18.5 and P/S ratio of 1.4. Itron Inc. had an annual average earning growth of 19.7% over the past 10 years.ITRI is in the portfolios of Lee Ainslie of Maverick Capital, Pioneer Investments, Louis Moore Bacon of Moore Capital Management, LP, Steven Cohen of SAC Capital Advisors.
One customer, Southern California Edison, represented approximately 12% and 11% of total revenues for the three and six months ended 2010, while no single customer represented more than 10% of total Company revenues for the same periods in 2009. Our 10 largest customers accounted for approximately 34% and 33% of total revenues for the three and six months ended June 30, 2010, compared with 15% and 13% for the three and six months ended June 30, 2009, respectively.
Gross margin was 31.0% and 31.4% for the three and six months ended 2010, compared with 32.2% and 32.7% during the same periods in 2009. The decrease in gross margin was due to a decline in both operating segment gross margins, partially offset by a higher percentage of Itron North America revenues, which are at higher gross margins compared with Itron International. A more detailed analysis of these fluctuations is provided in Operating Segment Results.
Itron North America operating expenses increased $1.6 million and $3.2 million, or 4%, for the second quarter and first half of 2010, compared with the same periods in 2009, primarily due to increased compensation expense. These higher costs were partially offset by lower amortization of intangible assets. As a result of higher revenues, operating expenses as a percentage of revenues were 15% and 17% for the second quarter and first half of 2010, compared with 31% for the same periods in 2009.
Itron International: Revenues decreased $4.6 million, or 2%, for the three months ended June 30, 2010, and remained relatively flat for the six months ended June 30, 2010, compared with the same period in 2009. Excluding the translation effect of a stronger U.S. dollar against most foreign currencies in the second quarter of 2010, compared with the second quarter of 2009, revenues increased 1%. Excluding the translation effect of a weaker U.S. dollar against most foreign currencies in the first half of 2010, compared with the first half of 2009, revenues declined 3%. Due to Itron Internationals diverse regional operations, revenue variability occurs due to the diverse economies in which it operates.
Operating expenses for Itron International were $68.0 million and $70.3 million for the three months ended June 30, 2010 and 2009, or 26% of revenues for the respective periods. Operating expenses for the six months ended June 30, 2010 and 2009 were $136.5 million and $137.8 million or 26% and 27% of revenues for the respective periods. Operating expenses, excluding amortization expense and before the impact of foreign currency exchange rate changes, increased 10% and 5% for the three and six months ended June 30, 2010, compared with the same periods in 2009.
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Itron Inc. has a market cap of $2.43 billion; its shares were traded at around $60.19 with a P/E ratio of 18.5 and P/S ratio of 1.4. Itron Inc. had an annual average earning growth of 19.7% over the past 10 years.ITRI is in the portfolios of Lee Ainslie of Maverick Capital, Pioneer Investments, Louis Moore Bacon of Moore Capital Management, LP, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
North America meter volumes increased 124% and 95%, driven by AMI, while International meter volumes decreased 3% and 8% for the three and six months ended June 30, 2010, compared with the same periods in 2009.One customer, Southern California Edison, represented approximately 12% and 11% of total revenues for the three and six months ended 2010, while no single customer represented more than 10% of total Company revenues for the same periods in 2009. Our 10 largest customers accounted for approximately 34% and 33% of total revenues for the three and six months ended June 30, 2010, compared with 15% and 13% for the three and six months ended June 30, 2009, respectively.
Gross margin was 31.0% and 31.4% for the three and six months ended 2010, compared with 32.2% and 32.7% during the same periods in 2009. The decrease in gross margin was due to a decline in both operating segment gross margins, partially offset by a higher percentage of Itron North America revenues, which are at higher gross margins compared with Itron International. A more detailed analysis of these fluctuations is provided in Operating Segment Results.
Itron North America operating expenses increased $1.6 million and $3.2 million, or 4%, for the second quarter and first half of 2010, compared with the same periods in 2009, primarily due to increased compensation expense. These higher costs were partially offset by lower amortization of intangible assets. As a result of higher revenues, operating expenses as a percentage of revenues were 15% and 17% for the second quarter and first half of 2010, compared with 31% for the same periods in 2009.
Itron International: Revenues decreased $4.6 million, or 2%, for the three months ended June 30, 2010, and remained relatively flat for the six months ended June 30, 2010, compared with the same period in 2009. Excluding the translation effect of a stronger U.S. dollar against most foreign currencies in the second quarter of 2010, compared with the second quarter of 2009, revenues increased 1%. Excluding the translation effect of a weaker U.S. dollar against most foreign currencies in the first half of 2010, compared with the first half of 2009, revenues declined 3%. Due to Itron Internationals diverse regional operations, revenue variability occurs due to the diverse economies in which it operates.
Operating expenses for Itron International were $68.0 million and $70.3 million for the three months ended June 30, 2010 and 2009, or 26% of revenues for the respective periods. Operating expenses for the six months ended June 30, 2010 and 2009 were $136.5 million and $137.8 million or 26% and 27% of revenues for the respective periods. Operating expenses, excluding amortization expense and before the impact of foreign currency exchange rate changes, increased 10% and 5% for the three and six months ended June 30, 2010, compared with the same periods in 2009.
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