-----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, IoNgm8jFI6EpghQ+zEi3jiNulofJzoDfyRk0k24rrNvPOHamlNgWaZ2XB/E8nnAq 2kpf0ZOkljDCLkVpdPpldw== 0001157523-05-001485.txt : 20050215 0001157523-05-001485.hdr.sgml : 20050215 20050215160029 ACCESSION NUMBER: 0001157523-05-001485 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050215 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050215 DATE AS OF CHANGE: 20050215 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: 05617186 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 a4823267.txt ITRON, INC. 8-K 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 February 15, 2005 ------------------------------------------------- Date of Report (Date of Earliest Event Reported) ITRON, INC. -------------------------------------------------------- (Exact Name of Registrant as Specified in its 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 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices, Zip Code) (509) 924-9900 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) None - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On February 15, 2005, Itron, Inc. issued a press release announcing preliminary financial results for the fourth quarter and year ending December 31, 2004. A copy of this press release and accompanying financial statements are attached as Exhibit 99.1. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. The following exhibits are filed as part of this report: Exhibit Number Description - --------- ------------------------------------------------------------- 99.1 Press Release dated February 15, 2005. The information presented in this Current Report on Form 8-K may contain forward-looking statements and certain assumptions upon which such forward-looking statements are in part based. Numerous important factors, including those factors identified in Itron, Inc.'s Annual Report on Form 10-K/A and other of the Company's filings with the Securities and Exchange Commission, and the fact that the assumptions set forth in this Current Report on Form 8-K could prove incorrect, could cause actual results to differ materially from those contained in such forward-looking statements. 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: February 15, 2005 By: /s/ STEVEN M. HELMBRECHT ---------------------------- Steven M. Helmbrecht Sr. Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - --------- ------------------------------------------------------------ 99.1 Press release dated February 15, 2005. EX-99.1 2 a4823267ex991.txt ITRON, INC. EXHIBIT 99.1 Exhibit 99.1 Itron Reports Preliminary Fourth Quarter and Full Year 2004 Financial Results SPOKANE, Wash.--(BUSINESS WIRE)--Feb. 15, 2005-- Acquisition Related Charges Result in GAAP Loss for the Quarter and Full Year Pro Forma EPS was 41 Cents for Quarter and 93 Cents for Full Year Itron, Inc. (NASDAQ:ITRI), today reported its preliminary financial results for the quarter and full year ended December 31, 2004. Summarizing the Company's financial performance for the year, LeRoy Nosbaum, chairman and CEO noted, "The acquisition of our electricity metering business on July 1, resulted in an exceptionally strong finish to the year. The smooth integration of that acquisition, along with other operational improvements resulted in dramatically increased revenues, profits and cash flow in the second half of 2004." Selected Q4 2004 Highlights: -- Revenues were $131.4 million for the quarter, an increase of 7% over the third quarter and a 64% increase over the year ago fourth quarter. -- Acquisition related and restructuring charges led to a GAAP net loss for the quarter of $6.8 million, or $.32 per diluted share, compared to a loss of $1.6 million, or $.08 per diluted share for the year ago fourth quarter. -- Pro forma net income was $9.1 million in the fourth quarter, or $.41 per diluted share, compared to $7.1 million, or $.32 per diluted share in the third quarter, and $253,000 or $.01 per diluted share for the year ago fourth quarter. -- Cash flow from operations in the fourth quarter was $24.5 million, compared with $20.4 million in the third quarter and negative operating cash flow of $6.0 million in the year ago fourth quarter. -- New order bookings in the fourth quarter, excluding Electricity Metering, were $74 million, the highest quarterly total in over two years. Total new order bookings including Electricity Metering were $128 million. These financial results are preliminary as the Company's independent auditors have not yet completed their audit fieldwork or their audit, which audit the Company currently anticipates will be complete on or about March 8, 2005. Although management is not currently aware of any adjustments that in the aggregate will require a material change to these financial results, it is possible that there may be adjustments prior to the filing of the Company's Annual Report on Form 10-K. In particular, the Company's annual assessment of whether goodwill or intangible assets have been impaired is not yet complete. Total Company fourth quarter revenues were $131.4 million in 2004 compared with $80.0 million in 2003. For the full year, total Company revenues were $399.2 million in 2004, compared with $317.0 million in 2003. The increased revenues in 2004 are driven by the addition of our Electricity Metering business mid-year. Meter Data Collection (MDC) segment revenues declined in the fourth quarter of 2004 compared with 2003 primarily because approximately two-thirds of our electric AMR shipments in 2004 were solid-state electricity meters with embedded AMR (which are reflected in Electricity Metering segment revenues) as opposed to separate AMR modules for installation on new or existing mechanical electricity meters (which are shown in MDC segment revenues). This transition in our electric AMR business, as well as slow industry-wide order activity from large investor owned utilities in late 2003 and the first three quarters of 2004, resulted in lower MDC revenues for the full year 2004 compared with 2003. We shipped approximately 1.3 million AMR endpoints in the fourth quarter of 2004, which includes separate AMR modules as well as electricity meters with embedded AMR, compared with approximately 1.1 million AMR endpoints in the fourth quarter of 2003, all of which were separate AMR modules. For the full year 2004, total AMR endpoint shipments were 4.5 million, compared with 4.3 million in 2003. Prior to the Electricity Metering acquisition on July 1, 2004, revenues from shipments of electricity meters with our AMR embedded were in the form of royalties only. New order bookings, excluding Electricity Metering, were $74 million for the quarter, 64% higher than new order bookings in the fourth quarter of last year, and our highest quarterly total for new order bookings since the third quarter of 2002. For the full year 2004, excluding Electricity Metering, new order bookings were $251 million compared with $214 million in 2003. Including Electricity Metering, new order bookings were $128 million for the fourth quarter of 2004, resulting in a book to bill ratio of approximately 1.1 to 1. New order bookings were $358 million for the full year 2004, resulting in a book to bill ratio of approximately 1 to 1 for the full year 2004, a significant improvement over the book to bill ratio in 2003 of approximately .8 to 1. Backlog figures in this release for 2004 include our Electricity Metering business. Twelve-month backlog, which represents the portion of backlog that will be earned over the next twelve months, was $97 million at December 31, 2004, compared with $104 million at September 30, 2004, and $62 million a year ago. Total backlog was $179 million at December 31, 2004 compared with $177 million at the end of last quarter and $145 million a year ago. In the fourth quarter of 2004, we completed a valuation analysis related to our Electricity Metering acquisition that closed on July 1, 2004, which resulted in a $6.4 million in process research and development (IPR&D) charge in the quarter and in a significant increase to intangible asset amortization expenses in the quarter. We expect to file a Form 8-K shortly that reflects an updated reallocation of the purchase price for our Electricity Metering acquisition. As a result of the IPR&D, increased asset amortization expenses, and restructuring charges, on a GAAP basis, we reported a net loss of $6.8 million, or $.32 per diluted share, for the fourth quarter of 2004, and a net loss of $5.1 million, or $.24 per diluted share for the full year 2004. By comparison, on a GAAP basis, we had a net loss of $1.6 million, or $.08 per diluted share for the fourth quarter of 2003 and net income of $10.5 million, or $.48 per diluted share, for the full year 2003. Pro forma net income for the fourth quarter was $9.1 million, or $.41 per diluted share in 2004, compared with $253,000, or $.01 cents per diluted share in the fourth quarter of 2003. For the full year 2004, pro forma net income was $20.6 million, or $.93 per diluted share, compared with $19.3 million, or $.89 per diluted share in 2003. Pro forma earnings exclude the amortization of intangible assets and debt placement fees, restructurings, IPR&D and extraordinary litigation accruals. A schedule reconciling pro forma income with GAAP income is attached to this release. Gross margin increased from 40% in the third quarter of 2004 to 42% in the fourth quarter of 2004. By comparison, fourth quarter 2003 gross margin was 35%. The lower gross margin in the fourth quarter of 2003 resulted primarily from higher warranty expense related to a specific product issue. For the full year, gross margin was 43%, compared with 45% in 2003. The lower gross margin for the full year 2004 results from the addition of our Electricity Metering business mid-year, which has a slightly lower gross margin than the rest of our business, and lower margins in our Meter Data Collection business that resulted primarily from a shift in the mix of hardware products, partially offset by lower warranty expense in 2004. Sales and marketing, product development and general and administrative expenses were 27% of revenues for the fourth quarter, and 31% of revenues for the full year 2004. By comparison, they were 31% in the fourth quarter of 2003 and 34% for the full year 2003. The decreases as a percentage of revenues in 2004 reflect improved operating leverage and the lower level of spending required for Electricity Metering marketing and product development due to its more narrowly focused product line, offset by higher general and administrative expenses including Sarbanes-Oxley compliance and audit fees. Higher intangible asset amortization expenses and interest expense for the quarter and year-to-date periods in 2004 are attributable to our Electricity Metering acquisition. Operating activities generated $24.5 million in cash during the quarter compared to negative operating cash flow of $6.0 million in the fourth quarter of 2003. For the full year 2004, operating activities generated $52.1 million in cash, compared with $10.3 million for the full year in 2003. The higher operating cash flow in 2004 results partially from our new Electricity Metering operations, but as well from higher collections on accounts receivable in 2004 and an increase in unearned revenue due primarily to increased service support renewals. We made a total of $24.0 million of optional repayments during the fourth quarter of 2004 on the $185.0 million term loan issued on July 1, 2004 in connection the acquisition of our Electricity Metering business. At December 31, 2004 the term loan balance was $150.1 million. To date in 2005, we have made additional optional repayments totaling $3.0 million. Business Outlook: Our outlook for 2005 does not include any impact related to the expensing of stock options or shares issued under our employee stock purchase plan (ESPP). We expect to implement FASB's Statement 123R effective July 1, 2005, which requires the expensing of stock options and ESPP shares issued at a discount. Expensing of stock options will decrease gross margin, increase expenses and influence our effective tax rate. For the quarter ending March 31, 2005, we expect: -- Revenues to be between $110 and $115 million, reflecting the seasonal downturn typically experienced in the first quarter due to weather and utility spending patterns. -- Pro forma diluted earnings per share between 20 and 22 cents. For the full year 2005, we expect: -- Revenues to be between $505 and $515 million. -- Pro forma diluted earnings per share between $1.40 and $1.45. -- Operating cash flow between $70 and $80 million. -- Net capital expenditures of approximately $15 million. "Our outlook for 2005 reflects low single digit growth in hardware revenues and high single digit growth in software revenues over the second half of 2004," said Nosbaum. "AMR activity levels remain high and we expect to close some orders in the current quarter with several investor owned utilities. With the reorganization into two primary operations groups now behind us, we expect to see further efficiencies in our expanded operations as we move through 2005 and look for another good year of free cash flow in 2005." Use of Pro Forma Financial Information: To supplement our consolidated financial statements presented in accordance with GAAP, we use pro forma measures of operating results, net income and earnings per share. Pro forma results are adjusted from GAAP-based results to exclude certain costs and expenses that we believe are not indicative of our core operating results. Pro forma results are one of the primary indicators management uses for evaluating historical results and for planning and forecasting future periods. We believe pro forma results provide consistency in our financial reporting which enhances our investor's understanding of our current financial performance as well as our future prospects. Pro forma results should be viewed in addition to, and not in lieu of, GAAP results. Earnings Conference Call: Itron will host a conference call to discuss the financial results contained in this release at 1:45 p.m. PST on February 15, 2005. The call will be webcast in a listen only mode by Thomson/CCBN and can be accessed online at www.itron.com, "About Itron - Investor Events." Investors may also listen to the live call through Thomson's StreetEvents Network at www.fulldisclosure.com or www.streetevents.com. The live webcast will begin at 1:45 p.m. (PT) and webcast replays will begin shortly after the conclusion of the live call and will be available for two weeks. A telephone replay of the call will also be available approximately one hour after the conclusion of the live call, for 48 hours, and is accessible by dialing 888-203-1112 (Domestic) or 719-457-0820 (International), and entering passcode #364612. Forward Looking Statements: This release contains forward-looking statements concerning Itron's operations, financial performance, sales, earnings and cash flow. These statements reflect our current plans and expectations and are based on information currently available. They rely on a number of assumptions and estimates, which could be inaccurate, and which are subject to risks and uncertainties that could cause our actual results to vary materially from those anticipated. Risks and uncertainties include the rate and timing of customer demand for the Company's products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, changes in laws and regulations, and other factors which are more fully described in our Annual Report on Form 10-K/A for the year ended December 31, 2003 and Forms 10-Q/A for 2004 on file with the SEC. Itron undertakes no obligation to update publicly or revise any forward-looking statements. About Itron: Itron is a leading technology provider and critical source of knowledge to the global energy and water industries. More than 3,000 utilities worldwide rely on Itron technology to deliver the knowledge they require to optimize the delivery and use of energy and water. Itron delivers value to its clients by providing industry-leading solutions for electricity metering, meter data collection, energy information management, demand side management and response, load forecasting, analysis and consulting services, distribution system design and optimization, Web-based workforce automation, commercial and industrial customer care and residential energy management. To know more, start here: www.itron.com. Statements of operations, reconciliation between reported and pro forma income and EPS, balance sheets and segment information follow. ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, Revenues 2004 2003 2004 2003 -------- -------- -------- -------- Sales $116,185 $ 69,253 $346,543 $273,783 Service 15,261 10,724 52,651 43,182 -------- -------- -------- -------- Total revenues 131,446 79,977 399,194 316,965 -------- -------- -------- -------- Cost of revenues Sales 67,138 46,763 198,131 151,023 Service 9,254 5,404 30,394 22,388 -------- -------- -------- -------- Total cost of revenues 76,392 52,167 228,525 173,411 -------- -------- -------- -------- Gross profit 55,054 27,810 170,669 143,554 Operating expenses Sales and marketing 13,308 10,024 45,279 40,985 Product development 11,710 9,734 44,379 41,508 General and administrative 10,784 5,398 35,263 26,141 Amortization of intangibles 16,630 2,574 27,901 9,618 Restructurings 3,253 - 7,258 2,208 In-process research and development 6,400 - 6,400 900 Litigation accrual - - - 500 -------- -------- -------- -------- Total operating expenses 62,085 27,730 166,480 121,860 -------- -------- -------- -------- Operating income (loss) (7,031) 80 4,189 21,694 Other income (expense) Equity in affiliates (13) (83) - 79 Interest income 14 (106) 166 159 Interest expense (4,983) (421) (13,145) (2,638) Other income (expense), net 98 (1,817) (389) (1,395) -------- -------- -------- -------- Total other income (expense) (4,884) (2,427) (13,368) (3,795) -------- -------- -------- -------- Income (loss) before income taxes (11,915) (2,347) (9,179) 17,899 Income tax benefit (provision) 5,108 708 4,122 (7,421) -------- -------- -------- -------- Net income (loss) $ (6,807) $ (1,639) $ (5,057) $ 10,478 -------- -------- -------- -------- Earnings per share Basic net income (loss) per share $ (0.32) $ (0.08) $ (0.24) $ 0.51 -------- -------- -------- -------- Diluted net income (loss) per share $ (0.32) $ (0.08) $ (0.24) $ 0.48 -------- -------- -------- -------- Weighted average number of shares outstanding Basic 21,204 20,556 20,922 20,413 Diluted 21,204 20,556 20,922 21,740 ITRON, INC. RECONCILIATION BETWEEN GAAP AND PRO FORMA INCOME (LOSS) AND EPS (Unaudited, in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, PRO FORMA NET INCOME 2004 2003 2004 2003 -------- ------- -------- -------- GAAP basis income (loss) before income taxes $(11,915) $(2,347) $ (9,179) $ 17,899 Adjustments to income (loss) before income taxes Amortization of intangibles 16,630 2,574 27,901 9,618 Amortization of debt placement fees 633 190 1,745 680 Restructurings 3,253 - 7,258 2,208 In-process research and development 6,400 - 6,400 900 Litigation accrual - - - 500 -------- ------- -------- -------- Total adjustments 26,916 2,764 43,304 13,906 Adjusted income before income taxes 15,001 417 34,125 31,805 Income tax provision (5,884) (164) (13,572) (12,480) -------- ------- -------- -------- Pro forma net income $ 9,117 $ 253 $ 20,553 $ 19,325 -------- ------- -------- -------- PRO FORMA EARNINGS PER SHARE Basic Weighted average number of basic shares outstanding 21,204 20,556 20,922 20,413 Basic pro forma net income per share $ 0.43 $ 0.01 $ 0.98 $ 0.95 -------- ------- -------- -------- Diluted Weighted average number of basic shares outstanding 21,204 20,556 20,922 20,413 Employee stock option shares 1,073 1,304 1,134 1,327 -------- ------- -------- -------- Weighted average number of diluted shares outstanding 22,277 21,860 22,056 21,740 Pro forma net income $ 9,117 $ 253 $ 20,553 $ 19,325 -------- ------- -------- -------- Diluted pro forma net income per share $ 0.41 $ 0.01 $ 0.93 $ 0.89 -------- ------- -------- -------- ITRON, INC. RECONCILIATION BETWEEN GAAP NET INCOME (LOSS), EBITDA AND PRO FORMA EBITDA (Unaudited, in thousands) Three Months Twelve Months Ended Ended December 31, December 31, 2004 2003 2004 2003 ------- ------- ------- ------- GAAP basis net income (loss) $(6,807) $(1,639) $(5,057) $10,478 Adjustments to net income (loss) Interest income (14) 106 (166) (159) Interest expense 4,983 421 13,145 2,638 Income tax provision (benefit) (5,108) (708) (4,122) 7,421 Depreciation and amortization 19,859 4,950 38,785 19,040 ------- ------- ------- ------- Total adjustments 19,720 4,769 47,642 28,940 -------- -------- -------- -------- EBITDA $12,913 $ 3,130 $42,585 $39,418 In-process research and development 6,400 - 6,400 900 -------- -------- -------- -------- PRO FORMA EBITDA $19,313 $ 3,130 $48,985 $40,318 ------- ------- ------- ------- ITRON, INC. SEGMENT INFORMATION (Unaudited, in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2004 2003 2004 2003 -------- -------- -------- -------- Revenues Hardware Solutions Meter Data Collection $ 59,846 $ 67,469 $238,560 $266,985 Electricity Metering 58,391 - 112,586 - -------- -------- -------- -------- Total Hardware Solutions 118,237 67,469 351,146 266,985 Software Solutions 13,209 12,508 48,048 49,980 -------- -------- -------- -------- Total Company $131,446 $ 79,977 $399,194 $316,965 -------- -------- -------- -------- Gross profit Hardware Solutions Meter Data Collection $ 26,133 $ 24,282 $108,348 $128,505 Electricity Metering 23,334 - 44,517 - -------- -------- -------- -------- Total Hardware Solutions 49,467 24,282 152,865 128,505 Software Solutions 5,587 3,528 17,804 15,049 -------- -------- -------- -------- Total Company $ 55,054 $ 27,810 $170,669 $143,554 -------- -------- -------- -------- Operating income (loss) Hardware Solutions Meter Data Collection $ 21,196 $ 18,669 $ 87,963 $105,605 Electricity Metering 12,762 - 30,047 - Other unallocated costs (307) (72) (911) (280) -------- -------- -------- -------- Total Hardware Solutions 33,651 18,597 117,099 105,325 Software Solutions (1,257) (4,841) (14,239) (21,037) Corporate unallocated (39,425) (13,676) (98,671) (62,594) -------- -------- -------- -------- Total Company $ (7,031) $ 80 $ 4,189 $ 21,694 -------- -------- -------- -------- ITRON, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) December 31, December 31, 2004 2003 ----------- ----------- ASSETS Current assets Cash and cash equivalents $ 11,624 $ 6,240 Accounts receivable, net 90,097 70,782 Inventories 45,459 16,037 Deferred income taxes, net 22,733 11,673 Other 5,477 4,557 ----------- ----------- Total current assets 175,390 109,289 Property, plant and equipment, net 59,690 42,818 Intangible assets, net 162,137 22,979 Goodwill 117,471 90,385 Deferred income taxes, net 27,252 31,755 Other 15,211 6,263 ----------- ----------- Total assets $ 557,151 $ 303,489 ----------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 37,440 $ 26,236 Wages and benefits payable 13,947 10,711 Short-term borrowings - 10,000 Current portion of debt 18,647 38,245 Current portion of warranty 7,243 13,939 Unearned revenue 22,991 12,004 ----------- ----------- Total current liabilities 100,268 111,135 Long-term debt 256,361 - Project financing debt 3,227 4,024 Warranty 6,331 3,536 Other obligations 6,535 7,550 ----------- ----------- Total liabilities 372,722 126,245 Shareholders' equity Preferred stock - - Common stock 211,719 200,567 Accumulated other comprehensive income (loss) 954 (136) Accumulated deficit (28,244) (23,187) ----------- ----------- Total shareholders' equity 184,429 177,244 ----------- ----------- Total liabilities and shareholders' equity $ 557,151 $ 303,489 ----------- ----------- CONTACT: Itron, Inc. Mima Scarpelli, 509-891-3565 mima.scarpelli@itron.com -----END PRIVACY-ENHANCED MESSAGE-----