Itron Announces Third Quarter 2020 Financial Results and Operational Update

About this update from Itron, Inc.

[{"type":"text","content":" LIBERTY LAKE, Wash.--(BUSINESS WIRE)--\nItron, Inc. (NASDAQ:ITRI) announced today financial results for its third quarter ended Sept. 30, 2020. Key results for the quarter include (compared with the third quarter of 2019):\n\n\nRevenue of $540 million, compared with $624 million;\n\n\nGross margin of 26.5%; compared with 31.5%;\n\n\nGAAP net loss of $(25) million, compared with net income of $17 million;\n\n\nGAAP loss per share of $(0.63), compared with GAAP diluted earnings per share (EPS) of $0.42;\n\n\nNon-GAAP diluted EPS of $0.61, compared with $1.04;\n\n\nAdjusted EBITDA of $40 million, compared with $74 million;\n\n\nFree cash flow of $38 million, compared with $32 million; and\n\n\nTotal backlog of $2.8 billion, compared with $3.1 billion.\n\n\n\"During the third quarter, our team continued to focus on the success of our customers and safely delivered results aligned to our expectations,\" said Tom Deitrich, Itron's president and chief executive officer.\n\n\"While still being negatively impacted by the COVID-19 pandemic, our results have improved sequentially from the second quarter low point,\" continued Deitrich. \"While we navigate the near-term challenges, we continue to innovate and position Itron to capture the growing technology and service need of utilities and cities with our solutions.\"\n\nSummary of Third Quarter Consolidated Financial Results\n\n(All comparisons made are against the prior year period unless otherwise noted)\n\nRevenue\n\nTotal third quarter revenue decreased 13% to $540 million, or 14%, excluding the impact of changes in foreign currency exchange rates. The decrease was primarily due to lower customer demand and operating constraints resulting from COVID-19.\n\nDevice Solutions revenue decreased 17%, Networked Solutions revenue decreased 14% and Outcomes revenue increased 5%.\n\nGross Margin\n\nConsolidated company gross margin of 26.5% decreased 500 basis points from the prior year due to COVID-19 induced manufacturing inefficiencies, inventory reserves and product mix.\n\n\nOperating Expenses and Operating Income\n\nGAAP operating expenses of $167 million increased $10 million from the prior year due to $44 million of restructuring expenses recognized in the quarter, partially offset by lower SG&A expenses, product development and amortization.\n\nNon-GAAP operating expenses of $114 mil...

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