Iteris(US:ITI)2024-08-08 20:21Financial Performance - Adjusted EBITDA for the three months ended June 30, 2024, was $2.9 million, down from approximately $4.0 million for the same period in 2023, representing a decrease of 27.5%[105] - Adjusted Net Income for the three months ended June 30, 2024, was $2.8 million, compared to approximately $4.0 million for the same period in 2023, indicating a decline of 30%[105] - Basic Adjusted EPS for the three months ended June 30, 2024, was $0.06, down from $0.09 in the same period of 2023, reflecting a decrease of 33.3%[118] - Net income for the three months ended June 30, 2024, was $0.4 million, a significant decrease from $2.1 million in the same period of 2023[116] - The company reported a net income per share of $0.01 for the three months ended June 30, 2024, compared to $0.05 for the same period in 2023[119] Revenue and Bookings - Total revenues for the three months ended June 30, 2024 increased 5.1% to $45.8 million, compared to $43.5 million in the corresponding period in the prior year[126] - Annual Recurring Revenue (ARR) for the three-month period ended June 30, 2024 was approximately 26.0% of total revenue, up from 24.5% in the same period of 2023[125] - The Company added approximately $48.8 million of new bookings during the first quarter of Fiscal 2025, with total ending backlog increasing 2.4% to approximately $126.8 million as of June 30, 2024[127] Expenses - Gross profit for the three months ended June 30, 2024 was $17.3 million, a 3.2% increase from $16.8 million in the prior year[128] - Research and development expense increased approximately 36.6% to $2.9 million for the three months ended June 30, 2024, compared to $2.1 million in the prior year[133] - General and administrative expense increased approximately 8.7% to $6.3 million for the three months ended June 30, 2024, compared to $5.8 million in the prior year[131] - Sales and marketing expense increased approximately 15.3% to $7.3 million for the three months ended June 30, 2024, compared to $6.3 million in the prior year[132] Tax and Amortization - The effective tax rate for the three months ended June 30, 2024 was 10.9% of pretax income, compared to 4.3% for the same period in 2023[138] - Total amortization expense for intangible assets was approximately $1.0 million for the three months ended June 30, 2024, compared to $0.8 million in the prior year[135] Cash Flow and Working Capital - As of June 30, 2024, the company had $34.3 million in working capital, an increase from $32.6 million at March 31, 2024[144] - Net cash used in operating activities for the three months ended June 30, 2024 was $3.6 million, a decrease of $7.6 million compared to net cash provided of $4.0 million for the same period last year[144] - Net cash used in investing activities during the same period was $0.1 million, down from $0.8 million in the prior year, primarily due to a $0.5 million decrease in capitalized software development costs[144] - Net cash used in financing activities was $0.6 million, compared to net cash provided of $0.3 million in the prior year, reflecting $0.6 million in share repurchase activity[145] Climate and Sustainability - The company continues to enhance the design of its sensors to withstand increasingly extreme weather conditions, addressing climate change risks[102] - The company is focused on reducing carbon emissions through improved efficiency in mobility infrastructure management solutions[102] - The company is committed to ongoing assessments of physical climate risk to mitigate potential impacts on its operations[101] Seasonality - The company experiences seasonality affecting product sales in the third and fourth fiscal quarters due to reduced construction and repairs during winter months[148] - Service revenues are also impacted seasonally, particularly in the third fiscal quarter, due to increased holidays reducing available billable hours[148]