-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UvPtWBl5n4wrMtKrKA6FVL/hcDPjOX1obXuVSApu9hunNq3i8sLvyUEhI2U7kkAX 8WEGzcbJlDZcO+ADCkkG1Q== 0001157523-04-006464.txt : 20040719 0001157523-04-006464.hdr.sgml : 20040719 20040719161016 ACCESSION NUMBER: 0001157523-04-006464 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040719 ITEM INFORMATION: Other events FILED AS OF DATE: 20040719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ITRON INC /WA/ CENTRAL INDEX KEY: 0000780571 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 911011792 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22418 FILM NUMBER: 04920209 BUSINESS ADDRESS: STREET 1: 2818 N SULLIVAN RD CITY: SPOKANE STATE: WA ZIP: 99216 BUSINESS PHONE: 5099249900 MAIL ADDRESS: STREET 1: 2818 NORTH SULLIVAN ROAD CITY: SPOKANE STATE: WA ZIP: 99216 FORMER COMPANY: FORMER CONFORMED NAME: ITRON INC DATE OF NAME CHANGE: 19920724 8-K 1 a4683134.txt ITRON INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------------------------------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 19, 2004 -------------------------------------- (Date of Report) ITRON, INC. ---------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Washington 000-22418 91-1011792 - ------------------------------ --------------------- -------------------- (State or Other Jurisdiction (Commission File No.) (IRS Employer of Incorporation) Identification No.) 2818 N. Sullivan Road, Spokane, WA 99216-1897 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices, including Zip Code) (509) 924-9900 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) None - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE. In January 2004, we began to implement an organizational change that resulted in a change in our segment reporting from five market facing business units (Electric, Natural Gas, Water & Public Power, International and End User Solutions) to two operating groups (Hardware Solutions and Software Solutions). Management has three primary measures for each of the operating groups: revenue, gross margin and operating income. Revenues for each operating group are according to product lines. There are no inter-operating group revenues. Within each operating group, costs of sales are based on standard costs, which include materials, direct labor and an overhead allocation based on projected production for the year. Variances from standard cost are also included in each operating group. Service related costs of sales are based on actual time and materials incurred, warranty expense and an allocation of miscellaneous service related costs. Operating expenses directly associated with each operating group may include sales, marketing, product development or administrative expenses. Corporate operating expenses, interest revenue, interest expense, equity in the income of investees accounted for under the equity method, amortization expense and income tax expense are not allocated to the operating groups, nor included in segment profit or loss for management purposes. Assets and liabilities are not allocated to the operating groups. Approximately 50% of depreciation expense is allocated to the operating groups. OPERATING SEGMENT PRODUCTS AND SERVICES OPERATING SEGMENT MAJOR PRODUCTS AND SERVICES - ---------------------- -------------------------------------------- Hardware Solutions: Residential and commercial automatic meter reading (AMR) meter modules, mobile and network AMR reading technologies, SmartSynch meter systems, handheld computers for meter data collection or mobile workforce applications, residential meter data collection software, mobile workforce solutions software and installation and implementation services for AMR, handheld meter data collection and mobile workforce systems. Software Solutions: Commercial and industrial meter data collection software, transmission and distribution systems design and optimization software, energy management and asset optimization software, and related implementation and consulting services. RECASTED 2004 AND 2003 SEGMENT INFORMATION As a result of our organizational change, we recasted our 2004 and 2003 segment information to reflect our new segment reporting structure for each of the quarters presented below.
2004 2003 ------------------------ --------------------------------------------------------- March 31 June 30 March 31 June 30 September 30 December 31 -------- -------- --------- -------- ------------ ----------- (in thousands) REVENUES Hardware Solutions $ 58,289 $ 70,177 $ 65,796 $ 72,069 $ 72,247 $ 71,234 Software Solutions 7,313 9,465 8,849 8,195 9,832 8,743 -------- -------- -------- -------- -------- -------- Total Company $ 65,602 $ 79,642 $ 74,645 $ 80,264 $ 82,079 $ 79,977 ======== ======== ======== ======== ======== ======== GROSS PROFIT Hardware Solutions $ 28,011 $ 32,484 $ 33,957 $ 37,101 $ 36,158 $ 25,811 Software Solutions 1,861 3,774 2,905 2,253 3,370 1,999 -------- -------- -------- -------- -------- -------- Total Company $ 29,872 $ 36,258 $ 36,862 $ 39,354 $ 39,528 $ 27,810 ======== ======== ======== ======== ======== ======== OPERATING INCOME (LOSS) Hardware Solutions $ 20,277 $ 24,033 $ 26,066 $ 28,344 $ 27,614 $ 17,514 Software Solutions (4,247) (1,737) (5,201) (3,591) (2,279) (3,631) Corporate unallocated (17,069) (17,595) (15,324) (16,938) (17,077) (13,803) -------- -------- -------- -------- -------- -------- Total Company $ (1,039) $ 4,701 $ 5,541 $ 7,815 $ 8,258 $ 80 ======== ======== ======== ======== ======== ========
RECASTED 2004 AND 2003 OPERATING EXPENSE INFORMATION Also, as a result of our organizational change, certain historical operating expenses have been reclassified between sales and marketing, product development and general and administrative in order to conform to current management reporting for each of the quarters presented below.
2004 2003 -------------------- ------------------------------------------------- March 31 June 30 March 31 June 30 September 30 December 31 -------- -------- --------- ------- ------------- ----------- (in thousands) OPERATING EXPENSES Sales and marketing $ 9,654 $10,272 $ 9,330 $10,959 $10,672 $10,024 Product development 10,222 10,554 9,891 11,042 10,841 9,734 General and administrative 6,626 8,652 7,147 6,730 6,866 5,398 Amortization of intangibles 2,027 2,027 1,888 2,765 2,391 2,574 Restructurings 2,382 52 2,165 43 -- -- In-process research and development -- -- 900 -- -- -- Litigation accrual -- -- -- -- 500 -- ------- ------- ------- ------- ------- ------- Total operating expenses $30,911 $31,557 $31,321 $31,539 $31,270 $27,730 ======= ======= ======= ======= ======= =======
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. ITRON, INC. Dated: July 19, 2004 By: /s/ DAVID G. REMINGTON ---------------------- David G. Remington Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----