Iteris Inc (New) (NYSE MKT:ITI) Q3 2018 Earnings Conference Call Transcript

Feb 06, 2019 • 04:30 pm ET

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Iteris Inc (New) (NYSE MKT:ITI) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Iteris Fiscal Third Quarter 2019 Financial Results Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Todd Kehrli with the MKR Group. Please go ahead, sir.

Executive
Todd Kehrli

Thank you, operator. Good afternoon, everyone and thank you for participating in today's conference call to discuss Iteris' financial results for its 2019 fiscal third quarter ended December 31, 2018.

Joining us today are Iteris' President and CEO, Mr. Joe Bergera; and the Company's CFO, Mr. Andy Schmidt. Following the remarks, we'll open the call for your questions.

Before we continue, we'd like to remind all participants that during the course of this call, we may make forward-looking statements regarding future events or the future performance of the Company. These statements are based on current information, are subject to change and are not guarantees of future performance. Iteris is not undertaking an obligation to provide updates to these forward-looking statements in the future. Actual results may differ substantially from what is discussed today, and no one should assume that at a later date, the Company's comments from today will still be valid. Iteris refers you to the documents that the Company files from time to time with the SEC, specifically the Company's most recent forms 10-K, 10-Q and 8-K, which contain and identify important risk factors that could cause actual results to differ materially from those that are contained in any of our forward-looking statements.

I'd like to remind everyone that a webcast replay of today's call will be available via the Investors section of the Company's website at www.iteris.com. In the Investor Relations section of the Iteris website, you'll find a document with many of the financial metrics that we have previously provided in our prepared remarks. We think it is more efficient to provide investors these metrics in a single, easy-to-read document rather than for us to read them in our prepared remarks.

Now I'd like to turn the call over to Iteris' President and CEO, Mr. Joe Bergera.

Executive
Joseph Bergera

Great. Thank you, Todd and good afternoon, everyone. Thank you for joining us today.

As you saw at the close of the market, we issued a press release announcing the financial results of our fiscal third quarter ended December 31, 2018. In Q3, Iteris recorded $23.1 million in total revenue versus $26 million in the prior year and $24.4 million in the prior quarter. This represents an 11% year-over-year decline and a 5% sequential decline.

Typically, we experienced an 8% to 10% sequential decline in our third quarter due to seasonal factors that affect both the Transportation Systems and Roadway Sensors segments. However, the third quarter of our prior fiscal year benefited from disaster recovery spending in the immediate aftermath of Hurricane Harvey, which affected our year-over-year comparisons. Additionally, the year-over-year decline in revenue is a result of the transition of a large contract with the Virginia Department of Transportation, or VDOT, which took effect in the first