Iteris Reports Preliminary Record Financial Results for Fiscal 2020 Fourth Quarter and Definitive Agreement to Sell Its Agriculture and Weather Analytics Segment

Iteris, Inc. (NASDAQ: ITI), the global leader in smart mobility infrastructure management, today announced preliminary revenue and operating income results for the period ending March 31, 2020.

Fourth Quarter and Full Year Preliminary Results

• Total fourth quarter revenue of over $31.5 million and total full year revenue of over $114.8 million, representing an increase of 21% and 16% respectively
• Total fourth quarter GAAP operating income of over $1.0 million and total full year GAAP operating loss of no more than $5.0 million, representing significant improvements
• Total fourth quarter bookings of over $28.5 million and total full year bookings of over $121.5 million, representing an increase of 18% and 14% respectively

Definitive Agreement to Sell Agriculture and Weather Analytics Segment

Iteris also announced that it has executed a definitive agreement to sell its Agriculture and Weather Analytics segment, composed of its ClearAg and ClearPath Weather product lines, to DTN, LLC, which is an operating company of TBG AG, a Swiss-based holding company. DTN is the leading independent provider of decision support solutions to global agriculture, oil and gas, and other weather-sensitive industries. Iteris will receive $12.0 million in total consideration in the all-cash transaction. The agreement includes normal working capital and other adjustments. Iteris will retain access to the weather and pavement data that it integrates into its market-leading transportation software products. Additionally, coincident with executing the definitive agreement, Iteris and DTN agreed to enter into a strategic partnership to pursue future joint opportunities in the global transportation market.

In conjunction with the sale, Iteris will take a restructuring charge in the range of $1.7 million to $1.9 million in the first quarter of fiscal year 2021, of which approximately 60% relates to the sale activities. The restructure includes separation costs for certain employees who will not transition to DTN and an additional 10 to 15 positions that are being eliminated to right-size the cost structure of the company. The annualized savings from the restructure charges, excluding those related to the sale, will be in the range of $1.2 million to $1.3 million.