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Iteris (ITI) 8 Aug 24 2025 Q1 Earnings call transcript

AInvestFriday, Aug 9, 2024 7:01 pm ET
1min read

Iteris, a leading provider of smart mobility infrastructure management solutions, showcased its robust performance in the first quarter of fiscal 2025, with record total revenue of $45.8 million, marking a 5% year-over-year increase. This achievement is noteworthy, considering the unusual prior year comparison due to the impact of post-COVID recovery and the release of a large number of sensor shipments.

Strong Customer Adoption of ClearMobility Platform

The company's ClearMobility platform, a key driver of growth, recorded total net bookings of $48.8 million, representing a significant 8% decrease year-over-year. However, this decrease is attributed to the unusually high bookings in the prior year, which were largely driven by a $15 million 4-year SaaS order. Despite this, the company has reported record trailing 6-month total net bookings of $102.1 million, demonstrating sustained customer demand for its offerings.

Product Portfolio Performance

Iteris' product portfolio, comprising sensors and third-party hardware, reported revenue of $24.4 million, representing a 3% increase year-over-year. The launch of new products, such as the Vantage PedSafe sensor and Vantage Next Vantage Radius advanced connectivity solutions, underscores the company's commitment to innovation and market expansion.

Services Portfolio Strength

The services portfolio, which includes consulting services, managed services, software as a service, and data as a service, showed remarkable strength, with record service revenue of $21.4 million, representing an 8% increase year-over-year. This growth is attributed to the strong demand for the Software as a Service solution, ClearGuide, and the company's strategic initiatives to enhance its internal labor capacity.

Financial Highlights and Guidance

Iteris reported a consolidated gross profit of $17.3 million, reflecting a 3% improvement year-over-year. The company expects full-year total revenue to be in the range of $188 million to $194 million, representing organic growth of 11% year-over-year. This growth is expected to be fueled by a series of product releases, including the new form factor for the AI-based detection system, Vantage Apex, and the highly advanced radar-based pedestrian detection system.

Looking Ahead

With a focus on its solutions roadmap and operational priorities, Iteris is poised for significant growth in the coming quarters. The company's strategic investments in research and development and talent acquisition are expected to drive innovation and enhance its competitive edge. Despite the challenges posed by global supply chain constraints and labor market constraints, Iteris remains confident in its ability to navigate these challenges and deliver value to its stakeholders.

In conclusion, Iteris' strong financial performance in the first quarter of fiscal 2025, coupled with its strategic plans for product innovation and operational improvements, positions the company well for future growth and success in the smart mobility infrastructure management market.

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