Iteris (ITI) 10-K20 Jun 162016 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2016	Jun. 08, 2016	Sep. 30, 2015
Document and Entity Information
Entity Registrant Name	ITERIS, INC.
Entity Central Index Key	350,868
Document Type	10-K
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 63,350,000
Entity Common Stock, Shares Outstanding		32,057,503
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Current assets:
Cash and cash equivalents	$ 16,029	$ 21,961
Trade accounts receivable, net of allowance for doubtful accounts of $714 and $314 at March 31, 2016 and March 31, 2015, respectively	13,241	11,206
Costs and estimated earnings in excess of billings on uncompleted contracts	5,250	4,266
Inventories	3,153	3,062
Deferred income taxes		2,680
Prepaid expenses and other current assets	1,505	1,338
Total current assets	39,178	44,513
Property and equipment, net	2,139	1,990
Deferred income taxes		5,610
Intangible assets, net	951	987
Goodwill	17,318	17,318
Other assets	434	214
Total assets	60,020	70,632
Current liabilities:
Trade accounts payable	5,469	5,915
Accrued payroll and related expenses	5,719	4,871
Accrued liabilities	1,445	1,320
Billings in excess of costs and estimated earnings on uncompleted contracts	2,294	1,549
Total current liabilities	14,927	13,655
Deferred rent	750	826
Deferred income taxes	685
Unrecognized tax benefits	196	183
Total liabilities	$ 16,558	$ 14,664
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $1.00 par value: Authorized shares - 2,000 Issued and outstanding shares - none
Common stock, $0.10 par value: Authorized shares - 70,000 at March 31, 2016 and March 31, 2015;Issued and outstanding shares - 32,048 at March 31, 2016 and 32,411 at March 31, 2015	$ 3,205	$ 3,242
Additional paid-in capital	135,424	135,572
Accumulated deficit	(95,167)	(82,846)
Total stockholders' equity	43,462	55,968
Total liabilities and stockholders' equity	$ 60,020	$ 70,632

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Consolidated Balance Sheets
Trade accounts receivable, allowance for doubtful accounts (in dollars)	$ 714	$ 314
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, Authorized shares	2,000	2,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, Authorized shares	70,000	70,000
Common stock, Issued shares	32,048	32,411
Common stock, outstanding shares	32,048	32,411

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statements of Operations
Total revenues	$ 77,748	$ 72,251	$ 68,228
Cost of revenues	47,079	44,069	42,254
Gross profit	30,669	28,182	25,974
Operating expenses:
Selling, general and administrative	26,846	24,425	19,269
Research and development	6,933	5,396	4,029
Amortization of intangible assets	360	431	627
Change in fair value of contingent consideration		9	25
Total operating expenses	34,139	30,261	23,950
Operating (loss) income	(3,470)	(2,079)	2,024
Non-operating income (expense):
Other income (expense), net	2	(20)
Interest income, net	12	6
(Loss) income from continuing operations before income taxes	(3,456)	(2,093)	2,024
(Provision) benefit for income taxes	(9,079)	816	(704)
(Loss) income from continuing operations	(12,535)	(1,277)	1,320
Gain on sale of discontinued operation, net of tax	214	207	89
Net (loss) income	$ (12,321)	$ (1,070)	$ 1,409
(Loss) income per share from continuing operations - basic and diluted	$ (0.39)	$ (0.04)	$ 0.04
Gain per share from sale of discontinued operation - basic and diluted (in dollars per share)	0.01	0.01	0
Net (loss) income per share - basic and diluted	$ (0.38)	$ (0.03)	$ 0.04
Shares used in basic per share calculations (in shares)	32,049	32,595	32,665
Shares used in diluted per share calculations (in shares)	32,049	32,595	32,847

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Mar. 31, 2013	$ 3,264	$ 135,802	$ (83,185)	$ 55,881
Balance (in shares) at Mar. 31, 2013	32,626,000
Increase (Decrease) in Stockholders' Equity
Stock option exercises	$ 29	241		270
Stock option exercises (in shares)	299,000
Stock-based compensation		300		300
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes	$ 6	(37)		(31)
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes (in shares)	59,000
Repurchases of common stock	$ (19)	(320)		$ (339)
Repurchases of common stock (in shares)	(196,000)			(196,000)
Net income (loss)			1,409	$ 1,409
Balance at Mar. 31, 2014	$ 3,280	135,986	(81,776)	57,490
Balance (in shares) at Mar. 31, 2014	32,788,000
Increase (Decrease) in Stockholders' Equity
Stock option exercises	$ 2	31		33
Stock option exercises (in shares)	24,000
Stock-based compensation		398		398
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes	$ 7	(27)		(20)
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes (in shares)	72,000
Repurchases of common stock	$ (47)	(816)		$ (863)
Repurchases of common stock (in shares)	(473,000)			(473,000)
Net income (loss)			(1,070)	$ (1,070)
Balance at Mar. 31, 2015	$ 3,242	135,572	(82,846)	$ 55,968
Balance (in shares) at Mar. 31, 2015	32,411,000			32,411,000
Increase (Decrease) in Stockholders' Equity
Stock option exercises	$ 24	359		$ 383
Stock option exercises (in shares)	243,000
Stock-based compensation		659		659
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes	$ 5	(37)		(32)
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes (in shares)	50,000
Repurchases of common stock	$ (66)	(1,129)		$ (1,195)
Repurchases of common stock (in shares)	(656,000)			(656,000)
Net income (loss)			(12,321)	$ (12,321)
Balance at Mar. 31, 2016	$ 3,205	$ 135,424	$ (95,167)	$ 43,462
Balance (in shares) at Mar. 31, 2016	32,048,000			32,048,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net (loss) income	$ (12,321)	$ (1,070)	$ 1,409
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Deferred income taxes	8,859	(749)	710
Depreciation of property and equipment	649	525	768
Stock-based compensation	659	398	300
Amortization of intangible assets	526	597	733
Change in fair value of contingent consideration		9	25
Gain on sale of discontinued operation, net of tax	(214)	(207)	(89)
Loss on disposal of property and equipment	58	17
Loss on impairment of intangible asset			108
Changes in operating assets and liabilities, net of effects of discontinued operation:
Accounts receivable	(2,035)	1,143	(1,403)
Net costs and estimated earnings in excess of billings	(239)	1,705	(34)
Inventories	(91)	(516)	(81)
Prepaid expenses and other assets	(407)	9	140
Accounts payable and accrued expenses	446	1,716	688
Net cash (used in) provided by operating activities	(4,110)	3,577	3,274
Cash flows from investing activities
Purchases of property and equipment	(856)	(986)	(452)
Capitalized software development costs	(490)		(301)
Cash proceeds from sale of business segment	368	142	(26)
Net cash used in investing activities	(978)	(844)	(779)
Cash flows from financing activities
Deferred payment for prior business combination		(336)	(659)
Repurchases of common stock	(1,195)	(863)	(339)
Proceeds from stock option exercises	383	33	270
Tax withholding payments for net share settlements of restricted stock units	(32)	(20)	(31)
Net cash used in financing activities	(844)	(1,186)	(759)
(Decrease) increase in cash and cash equivalents	(5,932)	1,547	1,736
Cash and cash equivalents at beginning of period	21,961	20,414	18,678
Cash and cash equivalents at end of period	16,029	21,961	20,414
Supplemental cash flow information:
Interest	18	30	33
Income taxes	177	141	128
Supplemental cash flow information:
Issuance of common stock for vested restricted stock units	$ 5	7	$ 6
Landlord contribution for tenant improvements		$ 328

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	12 Months Ended
	Mar. 31, 2016
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Description of Business Iteris, Inc. (referred to collectively with its subsidiary in these consolidated financial statements as "Iteris," the "Company," "we," "our" and "us") is a provider of intelligent information solutions for both the traffic management and global agribusiness markets. We are focused on the development and application of advanced technologies and software-based information systems that reduce traffic congestion, provide measurement, management and predictive traffic and weather analytics, and improve the safety of surface transportation systems infrastructure. We believe our products, services and solutions, in conjunction with sound traffic management, minimize the environmental impact of traffic congestion. By combining our unique intellectual property, products, decades of experience in traffic management, weather forecasting solutions and information technologies, we offer a broad range of Intelligent Transportation Systems ("ITS") solutions to customers throughout the U.S. and internationally. In the agribusiness markets, we have combined our unique intellectual property with enhanced soil, land surface and agronomy modeling techniques to create a set of ClearAg solutions. These solutions provide analytical support to large enterprises in the agriculture market and field-specific advisories to individual producers. We continue to make significant investments to leverage our existing technologies and further expand our software-based information systems to offer solutions to the precision agriculture technology markets. Iteris was incorporated in Delaware in 1987. Basis of Presentation Our consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary and have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). All intercompany accounts and transactions have been eliminated in consolidation. The results of continuing operations for all periods presented in the consolidated financial statements exclude the financial impact of a discontinued operation. See Note 3, "Sale of Vehicle Sensors," for further discussion related to the discontinued operation presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in the preparation of the consolidated financial statements include the collectability of accounts receivable and related allowance for doubtful accounts, projections of taxable income used to assess realizability of deferred tax assets, warranty reserves, costs to complete long-term contracts, indirect cost rates used in cost-plus contracts, contract reserves, the valuation of purchased intangible assets and goodwill, the valuation of equity instruments and estimates of future cash flows used to assess the recoverability of long-lived assets and the impairment of goodwill and fair value of our stock option awards used to calculate the stock-based compensation. Revenue Recognition Product revenues and related costs of sales are recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery under the terms of the arrangement has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection of the receivable is reasonably assured. These criteria are typically met at the time of product shipment but, in certain circumstances, may not be met until receipt or acceptance by the customer. Accordingly, at the date revenue is recognized, the significant obligations or uncertainties concerning the sale have been resolved. Transportation Systems revenues are derived primarily from long-term contracts with governmental agencies. Certain Performance Analytics revenues are also derived from long-term contracts with governmental agencies, as well as contracts with commercial companies. When appropriate, revenues are recognized using the percentage of completion method of accounting, whereby revenue is recognized as contract performance progresses and is determined based on the relationship of costs incurred to total estimated costs. Any anticipated losses on contracts are charged to earnings when identified. Changes in job performance and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined. Profit incentives are included in revenues when their realization is reasonably assured. Certain of our revenues are recognized as services are performed and amounts are earned, which is measured by time incurred or other contractual milestones or output measures. Revenues accounted for in this manner generally relate to certain fixed fee professional services, cost-plus fixed fee or time-and-materials contracts. Revenues for ongoing operations and maintenance services contracts are generally accounted for ratably as the services are performed throughout the term of the contract. Payments received in advance of services performed are deferred and recognized when the related services are performed. We recognize revenue from the sale of deliverables that are part of a multiple-element arrangement in accordance with applicable accounting guidance that establishes a relative selling price hierarchy permitting the use of an estimated selling price to determine the allocation of arrangement consideration to a deliverable in a multiple-element arrangement where neither vendor specific objective evidence ("VSOE") nor third-party evidence ("TPE") of fair value is available for that deliverable. In the absence of VSOE or TPE of the stand-alone selling price for one or more delivered or undelivered elements in a multiple-element arrangement, we are required to estimate the selling prices of those elements. Overall arrangement consideration is allocated to each element (both delivered and undelivered items) that has stand-alone value based on their relative selling prices, regardless of whether those selling prices are evidenced by VSOE or TPE or are based on our estimated selling prices. Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts Costs and estimated earnings in excess of billings on uncompleted contracts in the accompanying consolidated balance sheets represent unbilled amounts earned and reimbursable under services sales arrangements. At any given period-end, a large portion of the balance in this account represents the accumulation of labor, materials and other costs that have not been billed due to timing, whereby the accumulation of each month's costs and earnings are not administratively billed until the subsequent month. Also included in this account are amounts that will become billable according to contract terms, which usually require the consideration of the passage of time, achievement of milestones or completion of the project. Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billings in excess of costs and estimated earnings on uncompleted contracts in the accompanying consolidated balance sheets is comprised of cash collected from customers and billings to customers on contracts in advance of work performed, advance payments negotiated as a contract condition, estimated losses on uncompleted contracts, project-related legal liabilities and other project-related reserves. The unearned amounts are expected to be earned within the next twelve months. We record provisions for estimated losses on uncompleted contracts in the period in which such losses become known. The cumulative effects of revisions to contract revenues and estimated completion costs are recorded in the accounting period in which the amounts become evident and can be reasonably estimated. These revisions can include such items as the effects of change orders and claims, warranty claims, liquidated damages or other contractual penalties and adjustments for contract closeout settlements. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents consist primarily of demand deposits and money market funds maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with high quality financial institutions, and therefore are believed to have minimal credit risk. Our accounts receivable are primarily derived from billings with customers located throughout North America, as well as in the Middle East, Europe, South America and Asia. We generally do not require collateral or other security from our domestic customers. We maintain an allowance for doubtful accounts for potential credit losses, which losses have historically been within management's expectations. Fair Values of Financial Instruments The fair value of cash equivalents, receivables, accounts payable and accrued expenses approximate carrying value because of the short period of time to maturity. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments with initial maturities of ninety days or less. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were $1.5 million as of March 31, 2016 and $1.3 million as of March 31, 2015 and included approximately $520,000 of cash designated as collateral on performance bonds, as required under certain of our Transportation Systems contracts in the Middle East. The performance bonds require us to maintain 100% cash value of the bonds as collateral in a bank that is local to the purchasing agency. The performance bond collateral is required throughout the delivery of our services and is maintained in the local bank until the contract is closed by the purchasing agency. We expect these requirements, and the related cash collateral restrictions, to remain in place through 2016. Allowance for Doubtful Accounts The collectability of our accounts receivable is evaluated through review of outstanding invoices and ongoing credit evaluations of our customers' financial condition. In cases where we are aware of circumstances that may impair a specific customer's ability to meet its financial obligations subsequent to the original sale, we will record an allowance against amounts due, and thereby reduce the net recognized accounts receivable to the amount we reasonably believe will be collected. We also maintain an allowance based on our historical collections experience. When we determine that collection is not likely, we write off accounts receivable against the allowance for doubtful accounts. Inventories Inventories consist of finished goods, work-in-process and raw materials and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful life ranging from three to eight years. Leasehold improvements are depreciated over the term of the related lease or the estimated useful life of the improvement, whichever is shorter. Goodwill and Long-Lived Assets We evaluate goodwill on an annual basis in our fourth fiscal quarter or more frequently if we believe indicators of impairment exist. We have determined that our reporting units for purposes of testing for goodwill impairment are identical to our reportable segments for financial reporting purposes. We adopted the provisions issued by the Financial Accounting Standards Board ("FASB") that were intended to simplify goodwill impairment testing. This guidance permits us to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a two-step goodwill impairment test. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their carrying values. We determine the fair values of our reporting units using the income valuation approach, as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, we perform the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. The amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. We monitor the indicators for goodwill impairment testing between annual tests. As of March 31, 2016, following a quantative first-step assessment of the Company's reporting units, management determined that no adjustments to the carrying value of its goodwill and intangible assets were required. We test long-lived assets and purchased intangible assets (other than goodwill) for impairment if we believe indicators of impairment exist. We determine whether the carrying value of an asset or asset group is recoverable, based on comparisons to undiscounted expected future cash flows the asset or asset group is expected to generate. If an asset is not recoverable, we record an impairment loss equal to the amount by which the carrying value of the asset exceeds its fair value. We primarily use the income valuation approach to determine the fair value of our long lived assets and purchased intangible assets. As of March 31, 2016, there was no impairment to our long-lived and intangible assets. Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more-likely-than-not that some or all of the deferred tax assets will not be realized, which increases our income tax expense in the period such determination is made. As such, we determined it was appropriate to record a valuation allowance of approximately $10.1 million in the third quarter of our fiscal year ended March 31, 2016 ("Fiscal 2016") against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Stock-Based Compensation We record stock-based compensation in our consolidated statements of operations as an expense, based on the estimated grant date fair value of our stock-based awards, whereby such fair values are amortized over the requisite service period. Our stock-based awards are currently comprised of common stock options and restricted stock units. The fair value of our common stock option awards is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. While utilizing this model meets established requirements, the estimated fair values generated by it may not be indicative of the actual fair values of our common stock option awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements, as well as limited transferability. The fair value of our restricted stock units is based on the closing market price of our common stock on the grant date. If there are any modifications or cancellations of the underlying unvested stock-based awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Research and Development Expenditures Research and development expenditures are charged to expense in the period incurred. Shipping and Handling Costs Shipping and handling costs are included as cost of revenues in the period during which the products ship. Sales Taxes Sales taxes are presented on a net basis (excluded from revenues) in the consolidated statements of operations. Advertising Expenses Advertising costs are expensed in the period incurred and totaled $164,000, $134,000 and $168,000 in Fiscal 2016, the fiscal year ended March 31, 2015 ("Fiscal 2015") and fiscal year ended March 31, 2014 ("Fiscal 2014"), respectively. Warranty We generally provide a one to three year warranty from the original invoice date on all products, materials and workmanship. Products sold to various original equipment manufacturer customers sometimes carry longer warranties. Defective products will be either repaired or replaced, usually at our option, upon meeting certain criteria. We accrue a provision for the estimated costs that may be incurred for product warranties relating to a product as a component of cost of sales at the time revenue for that product is recognized. The accrued warranty reserve is included within accrued liabilities in the accompanying consolidated balance sheets. Repair and Maintenance Costs We incur repair and maintenance costs in the normal course of business. Should the repair or maintenance result in a permanent improvement to one of our leased facilities, the cost is capitalized as a leasehold improvement and amortized over its useful life or the remainder of the lease period, whichever is shorter. Non-permanent repair and maintenance costs are charged to expense as incurred. Comprehensive Income Comprehensive income equals net income for all periods presented. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes principles for reporting revenue and cash flows arising from an entity's contracts with customers. This new revenue recognition standard will replace most of the recognition guidance within GAAP. This guidance was deferred by ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued by the FASB in August 2015, and is now effective for fiscal years beginning on or after December 15, 2017 with early adoption permitted as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations , which further clarifies the implementation guidance in ASU 2014-09. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the impact that these standards will have on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11") to simplify the guidance on the measurement of inventory. Under the new standard, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard is effective for interim and annual periods beginning after December 15, 2016. We do not anticipate a significant impact on our consolidated financial statements upon adoption of ASU 2015-11. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") to simplify the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The standard may be adopted prospectively or retrospectively and early adoption is permitted. The Company early adopted ASU 2015-17, prospectively, in our fourth quarter of Fiscal 2016, which did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which is intended to simplify several aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The guidance will be effective for the fiscal year beginning after December 15, 2016, including interim periods within that year. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements.

Supplementary Financial Informa

Supplementary Financial Information	12 Months Ended
Supplementary Financial Information	Mar. 31, 2016
Supplementary Financial Information
Supplementary Financial Information	2. Supplementary Financial Information Inventories The following table presents details regarding our inventories: March 31, 2016 2015 (In thousands) Materials and supplies $ $ Work in process Finished goods $ $ Property and Equipment, net The following table presents details of our property and equipment, net: March 31, 2016 2015 (In thousands) Equipment $ $ Leasehold improvements Accumulated depreciation ) ) $ $ Depreciation expense was approximately $649,000, $525,000 and $768,000 in Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. Intangible Assets The following table presents details regarding our intangible assets: March 31, 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Technology $ $ ) $ $ ) Customer contracts / relationships ) ) Trade names and non-compete agreements ) ) Capitalized software development costs ) ) Total $ $ ) $ $ ) Amortization expense for intangible assets subject to amortization was approximately $526,000, $597,000 and $733,000 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. Approximately $166,000, $166,000 and $106,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $360,000, $431,000 and $627,000 was recorded to amortization expense for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively, in the consolidated statement of operations. Capitalized software development costs for the iPeMS platform began to be amortized in October 2013, resulting in approximately $166,000 recorded to cost of revenues in the accompanying consolidated statements of operations for the fiscal years ended March 31, 2016 and 2015. We do not have any intangible assets with indefinite useful lives. As of March 31, 2016, the future estimated amortization expense of approximately $951,000 is entirely associated with our Performance Analytics business segment, as follows: Year Ending March 31, (In thousands) 2017 $ 2018 2019 $ Refer to Note 4 for additional information regarding intangible assets acquired during the last three fiscal years. Goodwill The following table presents the activity related to the carrying value of our goodwill by reportable segment for Fiscal 2014, Fiscal 2015 and Fiscal 2016: Roadway Sensors Transportation Systems Performance Analytics Total (In thousands) Balance—March 31, 2014 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) $ $ $ $ Balance—March 31, 2015 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) Balance—March 31, 2016 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) $ $ $ $ Warranty Reserve Activity The following table presents activity with respect to the warranty reserve: Year Ended March 31, 2016 2015 2014 (In thousands) Balance at beginning of fiscal year $ $ $ Additions charged to cost of sales Warranty claims ) ) ) Balance at end of fiscal year $ $ $ Earnings Per Share The following table sets forth the computation of basic and diluted (loss) income from continuing operations per share: Year Ended March 31, 2016 2015 2014 (In thousands, except per share amounts) Numerator: (Loss) Income from continuing operations $ ) $ ) $ Denominator: Weighted average common shares used in basic computation Dilutive stock options — — Dilutive restricted stock units — — Dilutive warrants — — Weighted average common shares used in diluted computation (Loss) income from continuing operations per share: Basic $ ) $ ) $ Diluted $ ) $ ) $ The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted (loss) income per share from continuing operations as their effect would have been anti-dilutive: Year Ended March 31, 2016 2015 2014 (In thousands) Stock options Restricted stock units —

Sale of Vehicle Sensors

Sale of Vehicle Sensors	12 Months Ended
Sale of Vehicle Sensors	Mar. 31, 2016
Sale of Vehicle Sensors
Sale of Vehicle Sensors	3. Sale of Vehicle Sensors On July 29, 2011, we completed the sale of substantially all of our assets used in connection with our prior Vehicle Sensors segment to Bendix Commercial Vehicle Systems LLC ("Bendix"), a member of Knorr-Bremse Group. In connection with the asset sale, we are entitled to additional consideration in the form of the following performance and royalty-related earn-outs: Bendix is obligated to pay us an amount in cash equal to 85% of revenue associated with royalties received under our license and distribution agreements with Audiovox Electronics Corporation and Valeo Schalter and Sensoren GmbH through December 31, 2017, subject to certain reductions and limitations set forth in the asset purchase agreement. From the date of the asset sale, through March 31, 2016, we received approximately $1.6 million in connection with royalty-related earn-outs provisions for a total of $15.3 million in cash from the asset sale. In accordance with applicable accounting guidance, we determined that the Vehicle Sensors segment, which constituted one of our operating segments, qualified as a discontinued operation. For the fiscal year ended March 31, 2016, 2015 and 2014, we recorded a gain on sale of discontinued operation of approximately $214,000, $207,000 and $89,000, respectively, net of tax, related to the earn-out provisions of the asset purchase agreement.

Acquisitions

Acquisitions	12 Months Ended
Acquisitions	Mar. 31, 2016
Acquisitions
Acquisitions	4. Acquisitions Berkeley Transportation Systems, Inc. In the fiscal year ended March 31, 2012 ("Fiscal 2012"), we acquired all of the outstanding capital stock of Berkeley Transportation Systems, Inc. ("BTS"). BTS was a privately-held company based in Berkeley, California, which specialized in transportation performance measurement. BTS' Performance Measurement System leverages its real-time data collection, diagnostic, fusion and warehousing platform to aggregate and compute performance measures. This information is used to analyze how a transportation system is performing based on pre-determined measures of effectiveness such as stops, delays and travel time. Our primary reasons for the acquisition were to add key technologies to complement our Performance Analytics solutions and strengthen our performance measurement and management initiative as a whole. Our consolidated financial statements for Fiscal 2016, Fiscal 2015 and Fiscal 2014 include the results of operations of BTS. On or shortly after the acquisition date, we paid a total of approximately $840,000 in cash to the shareholders of BTS. On December 17, 2012, the Company entered into an amendment to the BTS stock purchase agreement, which modified certain earn out provisions, and as a result, the Company paid $700,000 in cash to the former BTS shareholders for achievement of those modified earn-out provisions in our fourth quarter of the fiscal year ended March 31, 2013 ("Fiscal 2013"). The amendment did not have a material impact on previous estimated amounts accrued in connection with the earn-out provisions. This payment completed the Company's obligation under the earn- out provisions of the agreement. During the third quarter of Fiscal 2014, the Company paid $250,000 pursuant to certain holdback provisions. Additionally, the Company paid the BTS shareholders approximately $336,000 in November 2014 pursuant to certain deferred payment provisions. These payments completed all of the Company's obligations under the purchase agreement. Meridian Environmental Technology, Inc. In Fiscal 2012, we acquired all of the capital stock of Meridian Environmental Technology, Inc. ("MET"), a privately-held company based in Grand Forks, North Dakota. MET specialized in 511/Advanced Traveler Information Systems, as well as the ClearPath Weather management tools that allow users to create solutions to meet roadway maintenance decision needs. On or shortly after the acquisition date, we paid approximately $1.6 million in cash, exclusive of $369,000 of cash acquired. We also agreed to pay up to $1.0 million on each of the first two anniversaries of the closing of the acquisition upon the satisfaction of certain conditions, as well as up to an additional $2.0 million under a 24-month earn-out provision. In January 2012, we made a cash payment of approximately $668,000 of the first deferred payment to the shareholders of MET and held back $250,000 in accordance with certain provisions of the purchase agreement. In June 2012, we determined the contingencies related to the release of the $250,000 holdback were not met. As a result, no portion of the $250,000 holdback was reversed into operating income during the second quarter of Fiscal 2013. Additionally, no amounts were earned by the former MET shareholders related to the first and second year earn-out provisions which ended on December 31, 2011 and 2012, respectively. The second deferred payment of $1.0 million was due in the fourth quarter of Fiscal 2013. As a result of certain holdback provisions and other deductions, the Company paid approximately $409,000 to the former MET shareholders in the second quarter of Fiscal 2014. This payment completed the Company's obligations under the deferred payment provisions of the purchase agreement. The total purchase price paid for this business acquisition was approximately $2.7 million.

Impairment of Goodwill

Impairment of Goodwill	12 Months Ended
Impairment of Goodwill	Mar. 31, 2016
Impairment of Goodwill
Impairment of Goodwill	5. Impairment of Goodwill As discussed in Note 1, goodwill is tested for impairment on an annual basis in our fourth fiscal quarter or more frequently if indicators of impairment exist. In Fiscal 2012, we early adopted the provisions issued by the FASB that are intended to simplify goodwill impairment testing. The updated guidance permits us to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting units is less than its carrying amount, we conduct a two-step goodwill impairment test. We determined it was appropriate to perform a quantitative first-step assessment in Fiscal 2014, Fiscal 2015 and Fiscal 2016 to estimate the fair value of our reporting units using both the income approach and the market approach. Based on our assessments, we determined that no impairment was indicated as of March 31, 2016 as the estimated fair value of each reporting unit exceeded its respective carrying value.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	6. Fair Value Measurements We measure fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities or prices quoted in inactive markets; and Level 3, defined as unobservable inputs that are significant to the fair value of the asset or liability, and for which little or no market data exists, therefore requiring management to utilize its own assumptions to provide its best estimate of what market participants would use in valuing the asset or liability. The liability for the estimated fair value of the contingent consideration in connection with our acquisitions of MET and BTS was initially determined using Level 3 inputs based on a probabilistic calculation whereby we assigned estimated probabilities to achieving the earn-out targets and then discounted the total contingent consideration to net present value. The MET and BTS earn-out targets were completed during Fiscal 2013 and the deferred acquisition payments were completed during Fiscal 2015. Other than the above, we did not have any material financial assets or liabilities measured at fair value on a recurring basis using Level 3 inputs as of March 31, 2016, 2015 or 2014. Our non-financial assets, such as goodwill, intangible assets and property and equipment, are measured at fair value on a non-recurring basis, generally when there is a transaction involving those assets such as a purchase transaction, a business combination or an adjustment for impairment. No non- financial assets were measured at fair value during the fiscal years ended March 31, 2016 and 2015.

Credit Facility

Credit Facility	12 Months Ended
Credit Facility	Mar. 31, 2016
Credit Facility
Credit Facility	7. Credit Facility We currently have a $12.0 million revolving line of credit with California Bank & Trust ("CB&T"), which expires on October 1, 2016. Interest on borrowed amounts under the revolving line of credit is payable monthly at a rate equal to the current stated prime rate (3.50% at March 31, 2016). We are obligated to pay an unused line fee of 0.15% per annum applied to the average unused portion of the revolving line of credit during the preceding month. The revolving line of credit does not contain any early termination fees and is secured by substantially all of our assets. As of March 31, 2016 and 2015, no amounts were outstanding under the credit facility with CB&T. Availability under this line of credit may be reduced or otherwise limited as a result of our obligations to comply with certain financial and other covenants. As of March 31, 2016 and 2015, we were in compliance with all such financial and other covenants.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Mar. 31, 2016
Income Taxes
Income Taxes	8. Income Taxes The components of current and deferred federal and state income tax provisions (benefits) are as follows: Year Ended March 31, 2016 2015 2014 (In thousands) Current income tax provision: Federal $ $ $ State Deferred income tax provision (benefit): Federal ) State ) Net income tax provision (benefit) $ $ ) $ The components of income tax expense (benefit) consist of the following: Year Ended March 31, 2016 2015 2014 (In thousands) Current income tax expense $ $ $ Deferred income tax expense (benefit) ) Benefit of operating loss carryforwards ) ) — Recording of valuation allowance — — Net income tax provision (benefit) $ $ ) $ The reconciliation of our income tax provision (benefit) to taxes computed at U.S. federal statutory rates is as follows: Year Ended March 31, 2016 2015 2014 (In thousands) (Benefit) provision for income taxes at statutory rates $ ) $ ) $ State income taxes net of federal benefit ) ) Tax credits ) ) ) Change in fair value of contingent acquisition consideration — Compensation charges Change in valuation allowance — Other Provision (benefit) for income taxes $ $ ) $ The components of deferred tax assets and liabilities are as follows: March 31, 2016 2015 (In thousands) Deferred tax assets: Net operating losses $ $ Capitalized R&D — Credit carry forwards Deferred compensation and payroll Bad debt allowance and other reserves Deferred rent Other, net Total deferred tax assets Valuation allowance ) — Total deferred tax assets, net of valuation allowance Deferred tax liabilities: Property and equipment ) ) Acquired intangibles ) ) Goodwill ) ) Total deferred tax liabilities ) ) Net deferred tax (liabilities) assets $ ) $ At March 31, 2016, we had $1.0 million in federal alternative minimum tax credit carryforwards that can be carried forward indefinitely, and $797,000 in federal research credits that begin to expire in 2031. We also had $480,000 in state tax credits that begin to expire in 2023. We had $9.7 million of federal net operating loss carryforwards at March 31, 2016 that begin to expire in 2022. We also had $794,000 of state net operating loss carryforwards at March 31, 2016 that begin to expire in 2031. Our deferred tax assets at March 31, 2016 do not include approximately $874,000 of excess tax benefits from employee stock option exercises that are a component of our net operating loss carryforwards. If and when such excess tax benefits are realized, stockholders' equity will be increased. In assessing the realizability of our deferred tax assets, we review all available positive and negative evidence, including reversal of deferred tax liabilities, potential carrybacks, projected future taxable income, tax planning strategies and recent financial performance. A valuation allowance is recorded when it is more-likely-than-not that some or all of the deferred tax assets will not be realized, which increases our income tax expense in the period such determination is made. As of December 31, 2015, the Company had generated a cumulative pre-tax loss over the trailing three years. As such, we considered it appropriate to record a valuation allowance of approximately $10.1 million in our third quarter of Fiscal 2016 against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance. Unrecognized Tax Benefits As of March 31, 2016 and 2015, our gross unrecognized tax benefits were $394,000 and $319,000, respectively, of which $251,000 and $184,000, respectively, are netted against certain noncurrent deferred tax assets. The amounts that would affect our effective tax rate if recognized are $328,000 and $257,000, respectively. We recognize interest income and/or interest expense, net, and penalties related to income tax matters in income tax expense. As of March 31, 2016 and 2015, we had accrued cumulatively $52,000 and $47,000, respectively, for the payment of potential interest and penalties. The total amount of interest expense and interest income, net, and penalties recognized in the consolidated statements of operations for the fiscal years ended March 31, 2016 and 2015 was $5,000 and $(6,000), respectively. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Year Ended March 31, 2016 2015 2014 (In thousands) Gross unrecognized tax benefits at beginning of year $ $ $ Increases for tax positions taken in prior years Decreases for tax positions taken in prior years — ) ) Increases for tax positions taken in the current year Lapse in statute of limitations ) ) ) Gross unrecognized tax benefits at March 31 $ $ $ We do not anticipate a significant change in gross unrecognized tax benefits within the next twelve months. We are subject to taxation in the U.S. and various state tax jurisdictions. We are subject to U.S. federal tax examination for fiscal tax years ended March 31, 2013 or later, and state and local income tax examination for fiscal tax years ended March 31, 2012 or later. However, if net operating loss ("NOL") carryforwards that originated in earlier tax years are utilized in the future, the amount of such NOLs from such earlier years remain subject to review by tax authorities. Our Fiscal 2015 federal tax return is currently under examination by the U.S. Internal Revenue Service.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments and Contingencies:
Commitments and Contingencies	9. Commitments and Contingencies Litigation and Other Contingencies As a provider of traffic engineering services, hardware products, software and other various solutions for the traffic and agricultural industries, the Company has in the past been, and may in the future be from time to time, involved in litigation relating to claims arising out of its operations in the normal course of business. While the Company cannot accurately predict the outcome of any such litigation, except as described below, the Company is not a party to any legal proceeding, the outcome of which, in management's opinion, individually or in the aggregate, would have a material effect on the Company's consolidated results of operations, financial position or cash flows. In November 2015, the City of Detroit, Michigan (the "City") filed a lawsuit against the Company in the United States Bankruptcy Court for the Eastern District of Michigan alleging that the Company received a payment in the amount of approximately $124,000 from the City during the 90-day period prior to the City's bankruptcy filing in 2013. In March 2016, the Company entered into such agreement with the City for an immaterial amount to fully resolve the matter. Operating Leases In May 2007, we entered into an agreement to lease 52,000 square feet of office space in Santa Ana, California for a term of 88 months. In September 2007, we relocated our headquarters and principal operations into this space. The monthly lease rate was $102,000 during the first year of the lease and increased each year thereafter, to $120,000 per month during the last year of the lease. In February 2014, we entered into an amendment to the lease, which reduced our office space by approximately 11,000 square feet and changed the lease term to 96 months, commencing on April 1, 2014. The monthly lease rate is approximately $76,000 during the first year of the amended term and increases each year thereafter, up to a maximum of approximately $90,000 during the last year of the term. Additionally, the lease amendment provided for approximately $328,000 in incentives in the form of tenant improvement allowances, which we recorded as fixed assets and deferred rent in our consolidated balance sheet. The leasehold improvements were capitalized into fixed assets during Fiscal 2015 and will be depreciated over the estimated useful life of the improvements, or the term of the lease amendment, whichever is shorter. The corresponding deferred rent amount will reduce monthly rent expense over the term of the lease amendment. We have lease commitments for facilities in various locations throughout the U.S., as well as for certain equipment. Future minimum rental payments under these non-cancelable operating leases at March 31, 2016 were as follows: Year Ending March 31, (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter $ Rent expense totaled approximately $1.7 million, $1.7 million and $1.9 million for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. Related Party Transaction We previously subleased office space to Maxxess Systems, Inc. ("Maxxess"), one of our former subsidiaries that we sold in September 2003. Maxxess is currently owned by an investor group that includes one current Iteris director and one former Iteris director. The sublease terminated in September 2007, at which time Maxxess owed us an aggregate of $274,000. Maxxess executed a promissory note for such amount, which was subsequently amended and restated on July 23, 2013. The amended and restated note bears interest at a rate of 6% per annum, compounded annually, with accrued interest to be paid quarterly on the first business day of each calendar quarter. Payments under the amended and restated note may only be paid in cash and all amounts outstanding will become due and payable on the earliest of (i) August 10, 2016, (ii) a change of control in Maxxess, or (iii) a financing by Maxxess resulting in gross proceeds of at least $10 million. As of March 31, 2016, approximately $219,000 of the original principal balance was outstanding and payable to Iteris. We have previously fully reserved for amounts owed to us by Maxxess and the outstanding principal balance remains fully reserved. On June 30, 2015, the Company entered into an agreement with Maxxess to provide professional services for the Company's Performance Analytics segment, in support of its ClearAg software development initiative. The professional services commenced in July 2015 and continued through December 31, 2015. On February 19, 2016, the Company entered into an amendment of the agreement to extend the duration for an additional six months, to continue through August 2016. The total effort under this agreement is limited to 300 hours, billed on a time and materials basis, not to exceed $102,600. During the fiscal year ended March 31, 2016, approximately $54,000 of professional services were rendered to the Company. Inventory Purchase Commitments At March 31, 2016, we had firm commitments to purchase approximately $4.4 million of inventory, operating assets and other supplies, which are expected to occur primarily during the first and second quarters of the fiscal year ended March 31, 2017.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Mar. 31, 2016
Stockholders' Equity
Stockholders' Equity	10. Stockholders' Equity Preferred Stock Our certificate of incorporation provides for the issuance of up to 2,000,000 shares of preferred stock. Our Board of Directors is authorized to issue from time to time such authorized but unissued shares of preferred stock in one or more series and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of each such series, including the dividend, conversion, voting, redemption and liquidation rights. As of March 31, 2016 and 2015, there were no outstanding shares of preferred stock, and we do not currently have plans to issue any shares of preferred stock. In August 2009, our Board of Directors adopted a stockholder rights plan, which calls for preferred stock purchase rights (each, a "Right") to be distributed, as a dividend, at the rate of one Right for each share of common stock held as of September 3, 2009. Each Right will entitle holders of common stock to buy one one-thousandth of one share of Series A Junior Participating Preferred Stock of Iteris. A further description and terms of the Rights are set forth in the Rights Agreement dated August 20, 2009 (as amended in August 2012) by and between Iteris and Computershare Trust Company, N.A., as rights agent. In connection with the stockholder rights plan, our Board of Directors approved the adoption of a Certificate of Designations, which created the Series A Junior Participating Preferred Stock, and likewise authorized the filing of a Certification of Elimination to eliminate the two series of junior participating preferred stock, which were originally created in April 1998 in connection with our previous stockholder rights plan which expired in 2008. Common Stock Reserved for Future Issuance The following summarizes common stock reserved for future issuance at March 31, 2016: Number of Shares (In thousands) Stock options outstanding Restricted stock units outstanding Authorized for future issuance under stock incentive plans

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Mar. 31, 2016
Employee Benefit Plans
Employee Benefit Plans	11. Employee Benefit Plans Stock Incentive Plans In September 2007, our stockholders approved the 2007 Omnibus Incentive Plan (the "2007 Plan"), which provides that options to purchase shares of our unissued common stock may be granted to our employees, officers, consultants and directors at exercise prices which are equal to or greater than the market value of our common stock on the date of grant. Options expire no more than ten years after the date of grant and generally vest at the rate of 25% on each of the first four anniversaries of the grant date. The 2007 Plan also allows for the issuance of stock appreciation rights, restricted stock, restricted stock units ("RSUs") and other stock-based awards based on the value of our common stock. New shares are issued to satisfy stock option exercises and share issuances under the 2007 Plan. In September 2009, our stockholders approved an amendment to increase the number of shares of our common stock authorized and reserved for issuance under the 2007 Plan by 800,000 shares to a total of 1,650,000 shares. In September 2012, our stockholders approved an amendment to increase the number of shares of our common stock authorized and reserved for issuance under the 2007 Plan by 800,000 shares to a total of 2,450,000 shares. In October 2014, our stockholders approved an amendment of the 2007 Plan to increase the number of shares of common stock authorized for issuance under the 2007 Plan by an additional 1,500,000 shares to a total of 3,950,000 shares. In September 2015, our stockholders approved an amendment of the 2007 Plan to increase the number of shares of common stock authorized for issuance under the 2007 Plan by an additional 1,000,000 shares to a total of 4,950,000 shares. At March 31, 2016, there were approximately 902,000 shares of common stock available for grant under this plan. As of March 31, 2016, options to purchase approximately 3,287,000 shares of common stock, as well as 173,000 RSUs, were outstanding under the 2007 Plan. Our 1997 Stock Incentive Plan (the "1997 Plan") terminated in September 2007; however, all stock options outstanding under the 1997 Plan remain outstanding pursuant to the terms of such stock options. As of March 31, 2016, options to purchase approximately 23,000 shares of our common stock were outstanding under the 1997 Plan. No further options or other stock-based awards may be granted under the 1997 Plan. Certain options granted under the 2007 Plan and the 1997 Plan (collectively, the "Plans") and the RSUs granted under the 2007 Plan provide for accelerated vesting of unvested options in the event of a change in control under certain circumstances. Stock Options A summary of activity in the Plans with respect to our stock options for Fiscal 2016 is as follows: Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) (Years) (In thousands) Options outstanding at March 31, 2015 $ Granted Exercised ) Forfeited ) Expired ) Options outstanding at March 31, 2016 $ $ Options exercisable at March 31, 2016 $ $ Vested and expected to vest at March 31, 2016 $ $ Options exercisable at March 31, 2016 pursuant to a change-in-control $ $ Restricted Stock Units In August 2010, we began granting RSUs under the 2007 Plan to certain of our employees. RSU awards are stock-based awards that entitle the holder to receive one share of our common stock for each RSU upon vesting. RSUs vest at the rate of 25% on each of the first four anniversaries of the grant date provided that the holder remains in service (as defined by the 2007 Plan) as of the vesting date. The fair value per RSU is determined based on the closing market price of our common stock on the grant date. A summary of activity with respect to our RSUs for Fiscal 2016 is as follows: # of Shares Weighted Average Price Per Share Weighted Average Remaining Life Aggregate Intrinsic Value (In thousands) (Years) (In thousands) RSUs outstanding at March 31, 2015 $ Granted Vested ) Forfeited ) RSUs outstanding at March 31, 2016 $ $ Expected to vest at March 31, 2016 $ $ Common stock issuable (for RSUs) at March 31, 2016 upon a change-in-control $ $ Stock-Based Compensation The following table presents stock-based compensation expense that is included in each functional line item in our consolidated statements of operations: Year Ended March 31, 2016 2015 2014 (In thousands) Cost of revenues $ $ $ Selling, general and administrative expense Research and development expense Total stock-based compensation $ $ $ At March 31, 2016, there was approximately $2.1 million and $265,000 of unrecognized compensation expense related to unvested stock options and RSUs, respectively. This expense is currently expected to be recognized over a weighted average period of approximately 3.1 years for stock options and 2.5 years for RSUs. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional stock options, RSUs or other stock-based awards. The grant date fair value of stock options granted was estimated using the following weighted-average assumptions: Year Ended March 31, 2016 2015 2014 Expected life—years Risk-free interest rate % % % Expected volatility of common stock % % % Dividend yield — % — % — % A summary of certain fair value and intrinsic value information pertaining to our stock options is as follows: Year Ended March 31, 2016 2015 2014 (In thousands, except per share amounts) Weighted average grant date fair value per share of options granted $ $ $ Intrinsic value of options exercised $ $ $ Employee Incentive Programs Under the terms of a Profit Sharing Plan, we may contribute to a trust fund such amounts as determined annually by the Board of Directors. No contributions were made during the fiscal years ended March 31, 2016, 2015 and 2014. We sponsor a defined contribution 401(k) plan (the "401(k) Plan"), adopted in 1990, under which eligible associates voluntarily contribute to the plan, up to IRS maximums, through payroll deductions. We match up to 50% of contributions, up to a stated limit, with all matching contributions being fully vested after three years of service. Our matching contributions under the 401(k) Plan were approximately $716,000, $495,000 and $504,000 for the fiscal years ended March 31, 2016, 2015 and 2014, respectively.

Stock Repurchase Program

Stock Repurchase Program	12 Months Ended
Stock Repurchase Program	Mar. 31, 2016
Stock Repurchase Program
Stock Repurchase Program	12. Stock Repurchase Program In August 2011, our Board of Directors approved a stock repurchase program pursuant to which we were authorized to acquire up to $3 million of our outstanding common stock from time to time through August 2012. We repurchased approximately 964,000 shares under this original program for a total purchase price of $1.3 million. On August 9, 2012, our Board of Directors approved a new stock repurchase program pursuant to which we may acquire up to $3 million of our outstanding common stock for an unspecified length of time. Under the new program, we may repurchase shares from time to time in open market and privately negotiated transactions and block trades, and may also repurchase shares pursuant to a 10b5-1 trading plan during our closed trading windows. There is no guarantee as to the exact number of shares that will be repurchased. We may modify or terminate the repurchase program at any time without prior notice. On November 6, 2014, our Board of Directors approved a $3.0 million increase to the Company's existing stock repurchase program, pursuant to which the Company may continue to acquire shares of its outstanding common stock from time to time for an unspecified length of time. For our fiscal year ended March 31, 2016, 2015 and 2014, we repurchased approximately 656,000, 473,000 and 196,000 shares of our common stock, respectively. From inception of the program in August 2011 through March 31, 2016, we repurchased approximately 3,422,000 shares of our common stock for an aggregate price of approximately $5.6 million, at an average price per share of $1.63. As of March 31, 2016, all repurchased shares have been retired and resumed their status as authorized and unissued shares of our common stock. As of March 31, 2016, approximately $1.7 million remains available for the repurchase of our common stock under our current program.

Business Segments, Significant

Business Segments, Significant Customer and Geographic Information	12 Months Ended
	Mar. 31, 2016
Business Segments, Significant Customer and Geographic Information
Business Segments, Significant Customer and Geographic Information	13. Business Segments, Significant Customer and Geographic Information Business Segments We currently operate in three reportable segments: Roadway Sensors, Transportation Systems and Performance Analytics. The Roadway Sensors segment provides hardware and software products to multiple segments of the ITS market. These various vehicle detection and information systems are used for traffic intersection control, incident detection and roadway traffic data collection applications. These include, among other products, our Vantage, VantageNext, VersiCam, Vantage Vector, SmartCycle, SmartSpan, Pegasus, Velocity, P10, P100 and Abacus products. The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the ITS industry. The Performance Analytics segment includes our performance measurement and information management solution iPeMS, a specialized transportation performance measurement and traffic analytics solutions, as well as ClearPath Weather, our road-maintenance applications, and ClearAg, our precision agriculture solutions. iPeMS provides big data and software analytics solutions that help determine current and future traffic patterns, permitting the effective performance analysis and management of traffic infrastructure resources. ClearPath Weather provides winter road maintenance recommendations for state agencies, municipalities and for commercial companies. Our ClearAg platform provides access to a comprehensive database of weather, soil and agronomic information essential to making informed agricultural decisions. The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1). Certain corporate general and administrative expenses, including general overhead functions such as information systems, accounting, human resources, marketing, compliance costs and certain administrative expenses, as well as interest and amortization of intangible assets, are not allocated to the segments. The reportable segments are each managed separately because they manufacture and distribute distinct products or provide services with different processes. All reported segment revenues are derived from external customers. The Company's Chief Executive Officer, who is the chief operating decision maker, or CODM, reviews financial information at the operating segment level. The Company's CODM does not review assets by segment in his resource allocation and therefore assets by segment are not disclosed below. Selected financial information for our reportable segments for the fiscal years ended March 31, 2016, 2015 and 2014 is as follows: Roadway Sensors Transportation Systems Performance Analytics Total (In thousands) Year Ended March 31, 2016 Revenues $ $ $ $ Depreciation Segment income (loss) ) Year Ended March 31, 2015 Revenues $ $ $ $ Depreciation Segment income (loss) ) Year Ended March 31, 2014 Revenues $ $ $ $ Depreciation Segment income (loss) ) The following table reconciles total segment income to consolidated income from continuing operations before income taxes: Year Ended March 31, 2016 2015 2014 (In thousands) Segment income: Total income from reportable segments $ $ $ Unallocated amounts: Corporate and other expenses ) ) ) Amortization of intangible assets ) ) ) Change in fair value of contingent acquisition consideration — ) ) Other (expense) income, net ) — Interest income, net — (Loss) income from continuing operations before income taxes $ ) $ ) $ Significant Customer and Geographic Information We currently have, and historically have had, a diverse customer base. For Fiscal 2016, no individual customer represented approximately 10% of our total revenues. For Fiscal 2015, one individual customer represented approximately 10% of our total revenues and no other individual customer represented greater than 10% of our total revenues. For Fiscal 2014, one individual customer represented approximately 11% of our total revenues and no other individual customer represented greater than 10% of our total revenues. No individual customer or government agency had a receivable balance at March 31, 2016 or 2015 greater than 10% of our total trade accounts receivable balances as of March 31, 2016 and 2015, respectively. The following table sets forth the percentages of our revenues, by geographic region, derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.: Year Ended March 31, 2016 2015 2014 Middle East % % % Other — — % % % Substantially all of our long-lived assets are held in the U.S.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
Quarterly Financial Data (Unaudited)	Mar. 31, 2016
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	14. Quarterly Financial Data (Unaudited) Quarter Ended: Revenues Gross Profit Net Loss Basic Net Loss per Share Diluted Net Loss per Share (In thousands, except per share amounts) June 30, 2015 $ $ $ ) $ ) $ ) September 30, 2015 ) ) ) December 31, 2015 ) ) ) March 31, 2016 ) ) ) $ $ $ ) $ * $ * June 30, 2014 $ $ $ ) $ — $ — September 30, 2014 ) ) ) December 31, 2014 ) — — March 31, 2015 ) ) ) $ $ $ ) $ * $ * * Annual per share amounts may not agree to the sum of the quarterly per share amounts due to differences between average shares outstanding during the periods.

Description of Business and S21

Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Mar. 31, 2016
Description of Business and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Our consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary and have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). All intercompany accounts and transactions have been eliminated in consolidation. The results of continuing operations for all periods presented in the consolidated financial statements exclude the financial impact of a discontinued operation. See Note 3, "Sale of Vehicle Sensors," for further discussion related to the discontinued operation presentation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in the preparation of the consolidated financial statements include the collectability of accounts receivable and related allowance for doubtful accounts, projections of taxable income used to assess realizability of deferred tax assets, warranty reserves, costs to complete long-term contracts, indirect cost rates used in cost-plus contracts, contract reserves, the valuation of purchased intangible assets and goodwill, the valuation of equity instruments and estimates of future cash flows used to assess the recoverability of long-lived assets and the impairment of goodwill and fair value of our stock option awards used to calculate the stock-based compensation.
Revenue Recognition	Revenue Recognition Product revenues and related costs of sales are recognized when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery under the terms of the arrangement has occurred, (iii) the price to the customer is fixed or determinable, and (iv) collection of the receivable is reasonably assured. These criteria are typically met at the time of product shipment but, in certain circumstances, may not be met until receipt or acceptance by the customer. Accordingly, at the date revenue is recognized, the significant obligations or uncertainties concerning the sale have been resolved. Transportation Systems revenues are derived primarily from long-term contracts with governmental agencies. Certain Performance Analytics revenues are also derived from long-term contracts with governmental agencies, as well as contracts with commercial companies. When appropriate, revenues are recognized using the percentage of completion method of accounting, whereby revenue is recognized as contract performance progresses and is determined based on the relationship of costs incurred to total estimated costs. Any anticipated losses on contracts are charged to earnings when identified. Changes in job performance and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined. Profit incentives are included in revenues when their realization is reasonably assured. Certain of our revenues are recognized as services are performed and amounts are earned, which is measured by time incurred or other contractual milestones or output measures. Revenues accounted for in this manner generally relate to certain fixed fee professional services, cost-plus fixed fee or time-and-materials contracts. Revenues for ongoing operations and maintenance services contracts are generally accounted for ratably as the services are performed throughout the term of the contract. Payments received in advance of services performed are deferred and recognized when the related services are performed. We recognize revenue from the sale of deliverables that are part of a multiple-element arrangement in accordance with applicable accounting guidance that establishes a relative selling price hierarchy permitting the use of an estimated selling price to determine the allocation of arrangement consideration to a deliverable in a multiple-element arrangement where neither vendor specific objective evidence ("VSOE") nor third-party evidence ("TPE") of fair value is available for that deliverable. In the absence of VSOE or TPE of the stand-alone selling price for one or more delivered or undelivered elements in a multiple-element arrangement, we are required to estimate the selling prices of those elements. Overall arrangement consideration is allocated to each element (both delivered and undelivered items) that has stand-alone value based on their relative selling prices, regardless of whether those selling prices are evidenced by VSOE or TPE or are based on our estimated selling prices.
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts	Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts Costs and estimated earnings in excess of billings on uncompleted contracts in the accompanying consolidated balance sheets represent unbilled amounts earned and reimbursable under services sales arrangements. At any given period-end, a large portion of the balance in this account represents the accumulation of labor, materials and other costs that have not been billed due to timing, whereby the accumulation of each month's costs and earnings are not administratively billed until the subsequent month. Also included in this account are amounts that will become billable according to contract terms, which usually require the consideration of the passage of time, achievement of milestones or completion of the project.
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts	Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts Billings in excess of costs and estimated earnings on uncompleted contracts in the accompanying consolidated balance sheets is comprised of cash collected from customers and billings to customers on contracts in advance of work performed, advance payments negotiated as a contract condition, estimated losses on uncompleted contracts, project-related legal liabilities and other project-related reserves. The unearned amounts are expected to be earned within the next twelve months. We record provisions for estimated losses on uncompleted contracts in the period in which such losses become known. The cumulative effects of revisions to contract revenues and estimated completion costs are recorded in the accounting period in which the amounts become evident and can be reasonably estimated. These revisions can include such items as the effects of change orders and claims, warranty claims, liquidated damages or other contractual penalties and adjustments for contract closeout settlements.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents consist primarily of demand deposits and money market funds maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with high quality financial institutions, and therefore are believed to have minimal credit risk. Our accounts receivable are primarily derived from billings with customers located throughout North America, as well as in the Middle East, Europe, South America and Asia. We generally do not require collateral or other security from our domestic customers. We maintain an allowance for doubtful accounts for potential credit losses, which losses have historically been within management's expectations.
Fair Values of Financial Instruments	Fair Values of Financial Instruments The fair value of cash equivalents, receivables, accounts payable and accrued expenses approximate carrying value because of the short period of time to maturity.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments with initial maturities of ninety days or less.
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were $1.5 million as of March 31, 2016 and $1.3 million as of March 31, 2015 and included approximately $520,000 of cash designated as collateral on performance bonds, as required under certain of our Transportation Systems contracts in the Middle East. The performance bonds require us to maintain 100% cash value of the bonds as collateral in a bank that is local to the purchasing agency. The performance bond collateral is required throughout the delivery of our services and is maintained in the local bank until the contract is closed by the purchasing agency. We expect these requirements, and the related cash collateral restrictions, to remain in place through 2016.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The collectability of our accounts receivable is evaluated through review of outstanding invoices and ongoing credit evaluations of our customers' financial condition. In cases where we are aware of circumstances that may impair a specific customer's ability to meet its financial obligations subsequent to the original sale, we will record an allowance against amounts due, and thereby reduce the net recognized accounts receivable to the amount we reasonably believe will be collected. We also maintain an allowance based on our historical collections experience. When we determine that collection is not likely, we write off accounts receivable against the allowance for doubtful accounts.
Inventories	Inventories Inventories consist of finished goods, work-in-process and raw materials and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful life ranging from three to eight years. Leasehold improvements are depreciated over the term of the related lease or the estimated useful life of the improvement, whichever is shorter.
Goodwill and Long-Lived Assets	Goodwill and Long-Lived Assets We evaluate goodwill on an annual basis in our fourth fiscal quarter or more frequently if we believe indicators of impairment exist. We have determined that our reporting units for purposes of testing for goodwill impairment are identical to our reportable segments for financial reporting purposes. We adopted the provisions issued by the Financial Accounting Standards Board ("FASB") that were intended to simplify goodwill impairment testing. This guidance permits us to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we conduct a two-step goodwill impairment test. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their carrying values. We determine the fair values of our reporting units using the income valuation approach, as well as other generally accepted valuation methodologies. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, we perform the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. The amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. We monitor the indicators for goodwill impairment testing between annual tests. As of March 31, 2016, following a quantative first-step assessment of the Company's reporting units, management determined that no adjustments to the carrying value of its goodwill and intangible assets were required. We test long-lived assets and purchased intangible assets (other than goodwill) for impairment if we believe indicators of impairment exist. We determine whether the carrying value of an asset or asset group is recoverable, based on comparisons to undiscounted expected future cash flows the asset or asset group is expected to generate. If an asset is not recoverable, we record an impairment loss equal to the amount by which the carrying value of the asset exceeds its fair value. We primarily use the income valuation approach to determine the fair value of our long lived assets and purchased intangible assets. As of March 31, 2016, there was no impairment to our long-lived and intangible assets.
Income Taxes	Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more-likely-than-not that some or all of the deferred tax assets will not be realized, which increases our income tax expense in the period such determination is made. As such, we determined it was appropriate to record a valuation allowance of approximately $10.1 million in the third quarter of our fiscal year ended March 31, 2016 ("Fiscal 2016") against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met.
Stock-Based Compensation	Stock-Based Compensation We record stock-based compensation in our consolidated statements of operations as an expense, based on the estimated grant date fair value of our stock-based awards, whereby such fair values are amortized over the requisite service period. Our stock-based awards are currently comprised of common stock options and restricted stock units. The fair value of our common stock option awards is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. While utilizing this model meets established requirements, the estimated fair values generated by it may not be indicative of the actual fair values of our common stock option awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements, as well as limited transferability. The fair value of our restricted stock units is based on the closing market price of our common stock on the grant date. If there are any modifications or cancellations of the underlying unvested stock-based awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense.
Research and Development Expenditures	Research and Development Expenditures Research and development expenditures are charged to expense in the period incurred.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are included as cost of revenues in the period during which the products ship.
Sales Taxes	Sales Taxes Sales taxes are presented on a net basis (excluded from revenues) in the consolidated statements of operations.
Advertising Expenses	Advertising Expenses Advertising costs are expensed in the period incurred and totaled $164,000, $134,000 and $168,000 in Fiscal 2016, the fiscal year ended March 31, 2015 ("Fiscal 2015") and fiscal year ended March 31, 2014 ("Fiscal 2014"), respectively.
Warranty	Warranty We generally provide a one to three year warranty from the original invoice date on all products, materials and workmanship. Products sold to various original equipment manufacturer customers sometimes carry longer warranties. Defective products will be either repaired or replaced, usually at our option, upon meeting certain criteria. We accrue a provision for the estimated costs that may be incurred for product warranties relating to a product as a component of cost of sales at the time revenue for that product is recognized. The accrued warranty reserve is included within accrued liabilities in the accompanying consolidated balance sheets.
Repair and Maintenance Costs	Repair and Maintenance Costs We incur repair and maintenance costs in the normal course of business. Should the repair or maintenance result in a permanent improvement to one of our leased facilities, the cost is capitalized as a leasehold improvement and amortized over its useful life or the remainder of the lease period, whichever is shorter. Non-permanent repair and maintenance costs are charged to expense as incurred.
Comprehensive Income	Comprehensive Income Comprehensive income equals net income for all periods presented.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which establishes principles for reporting revenue and cash flows arising from an entity's contracts with customers. This new revenue recognition standard will replace most of the recognition guidance within GAAP. This guidance was deferred by ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued by the FASB in August 2015, and is now effective for fiscal years beginning on or after December 15, 2017 with early adoption permitted as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations , which further clarifies the implementation guidance in ASU 2014-09. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. These standards are effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the impact that these standards will have on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11") to simplify the guidance on the measurement of inventory. Under the new standard, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard is effective for interim and annual periods beginning after December 15, 2016. We do not anticipate a significant impact on our consolidated financial statements upon adoption of ASU 2015-11. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") to simplify the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The standard may be adopted prospectively or retrospectively and early adoption is permitted. The Company early adopted ASU 2015-17, prospectively, in our fourth quarter of Fiscal 2016, which did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which is intended to simplify several aspects of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The guidance will be effective for the fiscal year beginning after December 15, 2016, including interim periods within that year. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements.

Supplemental Financial Informat

Supplemental Financial Information (Tables)	12 Months Ended
Supplemental Financial Information (Tables)	Mar. 31, 2016
Supplementary Financial Information
Schedule of inventories	March 31, 2016 2015 (In thousands) Materials and supplies $ $ Work in process Finished goods $ $
Schedule of property and equipment, net	March 31, 2016 2015 (In thousands) Equipment $ $ Leasehold improvements Accumulated depreciation ) ) $ $
Schedule of intangible assets	March 31, 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Technology $ $ ) $ $ ) Customer contracts / relationships ) ) Trade names and non-compete agreements ) ) Capitalized software development costs ) ) Total $ $ ) $ $ )
Schedule of future estimated amortization expense	Year Ending March 31, (In thousands) 2017 $ 2018 2019 $
Schedule of activity related to the carrying value of goodwill by reportable segment	Roadway Sensors Transportation Systems Performance Analytics Total (In thousands) Balance—March 31, 2014 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) $ $ $ $ Balance—March 31, 2015 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) Balance—March 31, 2016 Goodwill $ $ $ $ Accumulated impairment losses — ) — ) $ $ $ $
Schedule of warranty reserve activity	Year Ended March 31, 2016 2015 2014 (In thousands) Balance at beginning of fiscal year $ $ $ Additions charged to cost of sales Warranty claims ) ) ) Balance at end of fiscal year $ $ $
Schedule of computation of basic and diluted (loss) income from continuing operations per share	Year Ended March 31, 2016 2015 2014 (In thousands, except per share amounts) Numerator: (Loss) Income from continuing operations $ ) $ ) $ Denominator: Weighted average common shares used in basic computation Dilutive stock options — — Dilutive restricted stock units — — Dilutive warrants — — Weighted average common shares used in diluted computation (Loss) income from continuing operations per share: Basic $ ) $ ) $ Diluted $ ) $ ) $
Schedule of instruments excluded in the computation of diluted income from continuing operations per share	Year Ended March 31, 2016 2015 2014 (In thousands) Stock options Restricted stock units —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Mar. 31, 2016
Income Taxes
Schedule of components of current and deferred federal and state income tax provisions (benefits)	Year Ended March 31, 2016 2015 2014 (In thousands) Current income tax provision: Federal $ $ $ State Deferred income tax provision (benefit): Federal ) State ) Net income tax provision (benefit) $ $ ) $
Schedule of components of income tax expense (benefit)	Year Ended March 31, 2016 2015 2014 (In thousands) Current income tax expense $ $ $ Deferred income tax expense (benefit) ) Benefit of operating loss carryforwards ) ) — Recording of valuation allowance — — Net income tax provision (benefit) $ $ ) $
Schedule of reconciliation of income tax (benefit) provision to taxes computed at U.S federal statutory rates	Year Ended March 31, 2016 2015 2014 (In thousands) (Benefit) provision for income taxes at statutory rates $ ) $ ) $ State income taxes net of federal benefit ) ) Tax credits ) ) ) Change in fair value of contingent acquisition consideration — Compensation charges Change in valuation allowance — Other Provision (benefit) for income taxes $ $ ) $
Schedule of components of deferred tax assets and liabilities	March 31, 2016 2015 (In thousands) Deferred tax assets: Net operating losses $ $ Capitalized R&D — Credit carry forwards Deferred compensation and payroll Bad debt allowance and other reserves Deferred rent Other, net Total deferred tax assets Valuation allowance ) — Total deferred tax assets, net of valuation allowance Deferred tax liabilities: Property and equipment ) ) Acquired intangibles ) ) Goodwill ) ) Total deferred tax liabilities ) ) Net deferred tax (liabilities) assets $ ) $
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits	Year Ended March 31, 2016 2015 2014 (In thousands) Gross unrecognized tax benefits at beginning of year $ $ $ Increases for tax positions taken in prior years Decreases for tax positions taken in prior years — ) ) Increases for tax positions taken in the current year Lapse in statute of limitations ) ) ) Gross unrecognized tax benefits at March 31 $ $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
Commitments and Contingencies (Tables)	Mar. 31, 2016
Commitments and Contingencies:
Schedule of future minimum rental payments under non-cancelable operating leases	Year Ending March 31, (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
Stockholders' Equity (Tables)	Mar. 31, 2016
Stockholders' Equity
Schedule of common stock reserved for future issuance	Number of Shares (In thousands) Stock options outstanding Restricted stock units outstanding Authorized for future issuance under stock incentive plans

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
Employee Benefit Plans (Tables)	Mar. 31, 2016
Employee Benefit Plans
Summary of activity in the plans with respect to stock options	Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) (Years) (In thousands) Options outstanding at March 31, 2015 $ Granted Exercised ) Forfeited ) Expired ) Options outstanding at March 31, 2016 $ $ Options exercisable at March 31, 2016 $ $ Vested and expected to vest at March 31, 2016 $ $ Options exercisable at March 31, 2016 pursuant to a change-in-control $ $
Summary of activity with respect to RSUs	# of Shares Weighted Average Price Per Share Weighted Average Remaining Life Aggregate Intrinsic Value (In thousands) (Years) (In thousands) RSUs outstanding at March 31, 2015 $ Granted Vested ) Forfeited ) RSUs outstanding at March 31, 2016 $ $ Expected to vest at March 31, 2016 $ $ Common stock issuable (for RSUs) at March 31, 2016 upon a change-in-control $ $
Schedule of stock-based compensation expense	Year Ended March 31, 2016 2015 2014 (In thousands) Cost of revenues $ $ $ Selling, general and administrative expense Research and development expense Total stock-based compensation $ $ $
Schedule of weighted-average assumptions used in estimating the grant date fair value of stock options granted	Year Ended March 31, 2016 2015 2014 Expected life—years Risk-free interest rate % % % Expected volatility of common stock % % % Dividend yield — % — % — %
Summary of certain fair value and intrinsic value information pertaining to stock options	Year Ended March 31, 2016 2015 2014 (In thousands, except per share amounts) Weighted average grant date fair value per share of options granted $ $ $ Intrinsic value of options exercised $ $ $

Business Segments, Significan27

Business Segments, Significant Customer and Geographic Information (Tables)	12 Months Ended
	Mar. 31, 2016
Business Segments, Significant Customer and Geographic Information
Schedule of selected financial information for reportable segments	Roadway Sensors Transportation Systems Performance Analytics Total (In thousands) Year Ended March 31, 2016 Revenues $ $ $ $ Depreciation Segment income (loss) ) Year Ended March 31, 2015 Revenues $ $ $ $ Depreciation Segment income (loss) ) Year Ended March 31, 2014 Revenues $ $ $ $ Depreciation Segment income (loss) )
Schedule of reconciliation of total segment income to consolidated income from continuing operations before income taxes	Year Ended March 31, 2016 2015 2014 (In thousands) Segment income: Total income from reportable segments $ $ $ Unallocated amounts: Corporate and other expenses ) ) ) Amortization of intangible assets ) ) ) Change in fair value of contingent acquisition consideration — ) ) Other (expense) income, net ) — Interest income, net — (Loss) income from continuing operations before income taxes $ ) $ ) $
Schedule of percentages of revenues, by geographic region, derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.	Year Ended March 31, 2016 2015 2014 Middle East % % % Other — — % % %

Quarterly Financial Data (Una28

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
Quarterly Financial Data (Unaudited) (Tables)	Mar. 31, 2016
Quarterly Financial Data (Unaudited)
Schedule of quarterly financial data (Unaudited)	Quarter Ended: Revenues Gross Profit Net Loss Basic Net Loss per Share Diluted Net Loss per Share (In thousands, except per share amounts) June 30, 2015 $ $ $ ) $ ) $ ) September 30, 2015 ) ) ) December 31, 2015 ) ) ) March 31, 2016 ) ) ) $ $ $ ) $ * $ * June 30, 2014 $ $ $ ) $ — $ — September 30, 2014 ) ) ) December 31, 2014 ) — — March 31, 2015 ) ) ) $ $ $ ) $ * $ * * Annual per share amounts may not agree to the sum of the quarterly per share amounts due to differences between average shares outstanding during the periods.

Description of Business and S29

Description of Business and Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2015
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets	$ 1,505,000	$ 1,338,000
Cash designated as collateral on performance bonds	$ 520,000
Percentage of cash value of the bonds as collateral	100.00%
Goodwill and Long-Lived Assets
Impairment of long-lived and intangible assets	$ 0	0
Income Taxes
Valuation allowance on deferred tax assets	10,561,000			$ 10,100,000
Advertising Expenses
Advertising costs	$ 164,000	$ 134,000	$ 168,000
Maximum
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts
Expected period for unearned amounts to be earned	12 months
Warranty
Warranty period	3 years
Maximum \| Property and equipment
Property and Equipment
Useful life	8 years
Minimum
Warranty
Warranty period	1 year
Minimum \| Property and equipment
Property and Equipment
Useful life	3 years

Supplementary Financial Infor30

Supplementary Financial Information - Inventories , Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Inventories
Materials and supplies	$ 1,754	$ 1,566
Work in process	217	216
Finished goods	1,182	1,280
Total inventories	3,153	3,062
Property and Equipment, net
Accumulated depreciation	(6,854)	(6,946)
Net	2,139	1,990
Depreciation expense	649	525	$ 768
Equipment
Property and Equipment, net
Gross	6,530	6,473
Leasehold improvements
Property and Equipment, net
Gross	$ 2,463	$ 2,463

Supplementary Financial Infor31

Supplementary Financial Information - Intangible Assets (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Intangible Assets
Gross Carrying Amount	$ 4,704,000	$ 4,214,000
Accumulated Amortization	(3,753,000)	(3,227,000)
Amortization expense	526,000	597,000	$ 733,000
Amortization recorded to cost of revenues	166,000	166,000	106,000
Amortization of intangible assets	360,000	431,000	$ 627,000
Future estimated amortization expense
Total	951,000	987,000
Performance Analytics
Future estimated amortization expense
2,017	528,000
2,018	251,000
2,019	172,000
Total	951,000
Technology
Intangible Assets
Gross Carrying Amount	1,856,000	1,856,000
Accumulated Amortization	(1,708,000)	(1,565,000)
Customer contracts / relationships
Intangible Assets
Gross Carrying Amount	750,000	750,000
Accumulated Amortization	(622,000)	(497,000)
Trade names and non-compete agreements
Intangible Assets
Gross Carrying Amount	1,110,000	1,110,000
Accumulated Amortization	(1,008,000)	(916,000)
Capitalized software development costs
Intangible Assets
Gross Carrying Amount	988,000	498,000
Accumulated Amortization	(415,000)	(249,000)
Capitalized software development costs and acquired data sets
Intangible Assets
Amortization recorded to cost of revenues	$ 166,000	$ 166,000

Supplementary Financial Infor32

Supplementary Financial Information - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Activity related to carrying value of goodwill
Balance at the end of the year	$ 25,288	$ 25,288	$ 25,288
Accumulated impairment losses	(7,970)	(7,970)	(7,970)
Goodwill, net	17,318	17,318	17,318
Activity related to warranty reserve
Balance at beginning of fiscal year	181	184	169
Additions charged to cost of sales	236	134	179
Warranty claims	(224)	(137)	(164)
Balance at end of fiscal year	193	181	184
Roadway Sensors
Activity related to carrying value of goodwill
Balance at the end of the year	8,214	8,214	8,214
Goodwill, net	8,214	8,214	8,214
Transportation Systems
Activity related to carrying value of goodwill
Balance at the end of the year	14,906	14,906	14,906
Accumulated impairment losses	(7,970)	(7,970)	(7,970)
Goodwill, net	6,936	6,936	6,936
Performance Analytics
Activity related to carrying value of goodwill
Balance at the end of the year	2,168	2,168	2,168
Goodwill, net	$ 2,168	$ 2,168	$ 2,168

Supplementary Financial Infor33

Supplementary Financial Information - Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Numerator:
(Loss) income from continuing operations	$ (12,535)	$ (1,277)	$ 1,320
Denominator:
Weighted average common shares used in basic computation (in shares)	32,049	32,595	32,665
Dilutive warrants (in shares)			1
Weighted average common shares used in diluted computation (in shares)	32,049	32,595	32,847
(Loss) income from continuing operations per share:
Basic (in dollars per share)	$ (0.39)	$ (0.04)	$ 0.04
Diluted (in dollars per share)	$ (0.39)	$ (0.04)	$ 0.04
Stock options
Denominator:
Dilutive stock options (in shares)			111
Restricted stock units
Denominator:
Dilutive restricted stock units (in shares)			70

Supplemental Financial Inform34

Supplemental Financial Information - Earnings (Loss) Per Share 2 (Details) - shares shares in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Stock options
Shares excluded in the computation of income (loss) from continuing operations per share
Shares excluded in the computation of income (loss) from continuing operations per share	3,220	2,252	854
Restricted stock units
Shares excluded in the computation of income (loss) from continuing operations per share
Shares excluded in the computation of income (loss) from continuing operations per share	186	198

Sale of Vehicle Sensors (Detail

Sale of Vehicle Sensors (Details)	Jul. 29, 2011segment	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2014USD ($)
Sale of Vehicle Sensors
Cash proceeds from sale of business segment		$ 368,000	$ 142,000	$ (26,000)
Number of discontinued operations business segments \| segment	1
Vehicle Sensors segment
Sale of Vehicle Sensors
Additional cash consideration, percentage of revenue associated with royalties	85.00%
Amount of earn-outs in connection with royalty		1,600,000
Cash proceeds from sale of business segment		15,300,000
Sale of Vehicle Sensors, additional disclosures
Net sales classified as part of discontinued operation		$ 214,000	$ 207,000	$ 89,000

Acquisitions - Berkeley and Mer

Acquisitions - Berkeley and Meridian (Details) - USD ($)

Dec. 17, 2014

Nov. 30, 2014

Jan. 31, 2012

Dec. 31, 2013

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2012

Mar. 31, 2015

Mar. 31, 2014

Dec. 31, 2012

Mar. 31, 2012

Dec. 31, 2011

Acquisitions

Payment for deferred and holdback provisions

$ 9,000

$ 25,000

Cash payment related to second deferred payment

336,000

$ 659,000

BTS

Acquisitions

Amount paid on modification of certain earn-out provisions

$ 700,000

Payment for deferred and holdback provisions

$ 336,000

$ 250,000

Fair value of consideration transferred:

Cash paid on or shortly after acquisition date

$ 840,000

MET

Acquisitions

Contingent consideration scheduled payment term for other adjustments

2 years

Contingent consideration, maximum annual amount other adjustments

$ 1,000,000

Contingent consideration scheduled payment term for an earn-out provision

24 months

Contingent consideration, maximum annual earn-out provision

$ 2,000,000

Cash payment related to first deferred payment

$ 668,000

$ 409,000

Amount heldback in accordance with certain provisions of purchase agreement

$ 250,000

$ (250,000)

Amount of the earn-out provision

$ 0

Cash payment related to second deferred payment

$ 1,000,000

Fair value of consideration transferred:

Cash paid on or shortly after acquisition date

$ 2,700,000

Allocation:

Cash Acquired from Acquisition

$ 369,000

Impairment of Goodwill (Details

Impairment of Goodwill (Details)	12 Months Ended
Impairment of Goodwill (Details)	Mar. 31, 2016USD ($)
Impairment of Goodwill
Goodwill, Impairment Loss	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	12 Months Ended
Fair Value Measurements (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Non-financial assets measured at fair value
Non-financial assets measured at fair value	$ 0	$ 0

Credit Facility (Details)

Credit Facility (Details) - USD ($)	12 Months Ended
Credit Facility (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Credit facility
Revolving Line of Credit
Amount outstanding	$ 0	$ 0
Revolving Line of Credit
Revolving Line of Credit
Maximum borrowing capacity	$ 12,000,000
Prime rate at the end of the period (as a percent)	3.50%
Unused line fee (as a percent)	0.15%

Income Taxes - Components of cu

Income Taxes - Components of current and deferred federal and state income tax provisions (benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Current income tax provision :
Federal	$ 170	$ 3	$ 21
State	50	49	20
Deferred income tax provision (benefit):
Federal	8,289	(655)	330
State	570	(213)	333
Net income tax provision (benefit)	$ 9,079	$ (816)	$ 704

Income Taxes - Components of in

Income Taxes - Components of income tax expense (benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Components of income tax expense (benefit)
Current income tax expense	$ 220	$ 52	$ 41
Deferred income tax expense (benefit)	1,232	(781)	663
Benefit of operating loss carryforwards	(1,316)	(87)
Recording of valuation allowance	8,943
Net income tax provision (benefit)	$ 9,079	$ (816)	$ 704

Income Taxes - Reconciliation a

Income Taxes - Reconciliation and Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2015
Reconciliation of income tax provision to taxes computed at U.S. federal statutory rates
(Benefit) provision for income taxes at statutory rates	$ (1,175)	$ (712)	$ 688
State income taxes net of federal benefit	(184)	(108)	48
Tax credits	(258)	(148)	(290)
Change in fair value of contingent acquisition consideration		3	8
Compensation charges	91	88	22
Change in valuation allowance	10,557		185
Other	48	61	43
Net income tax provision (benefit)	9,079	(816)	$ 704
Deferred tax assets:
Net operating losses	2,468	5,420
Capitalized R&D	3,557
Credit carry forwards	2,130	1,610
Deferred compensation and payroll	1,306	1,163
Bad debt allowance and other reserves	665	504
Deferred rent	335	364
Other, net	242	271
Total deferred tax assets	10,703	9,332
Valuation allowance	(10,561)			$ (10,100)
Total deferred tax assets, net of valuation allowance	142	9,332
Deferred tax liabilities:
Property and equipment	(71)	(137)
Acquired intangibles	(71)	(252)
Goodwill	(685)	(653)
Total deferred tax liabilities	(827)	(1,042)
Net deferred tax liabilities	$ (685)
Net deferred tax assets		$ 8,290

Income Taxes - Federal and Stat

Income Taxes - Federal and State tax credit carryforwards (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Operating loss carryforwards
Excess tax benefits from exercise of employee stock option	$ 874,000
Valuation allowance on deferred tax assets	10,561,000	$ 10,100,000
Deferred Tax Assets, Tax Credit Carryforwards [Abstract]
Federal research credits	3,557,000
Federal
Operating loss carryforwards
Operating loss carryforwards	9,700,000
Deferred Tax Assets, Tax Credit Carryforwards [Abstract]
Federal alternative minimum tax credit carryforwards	1,000,000
Federal research credits	797,000
State
Operating loss carryforwards
Operating loss carryforwards	794,000
Deferred Tax Assets, Tax Credit Carryforwards [Abstract]
Tax credit carryforwards	$ 480,000

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefit (Details) - USD ($)	12 Months Ended
Income Taxes - Unrecognized tax benefit (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Income Taxes
Unrecognized tax benefits netted against certain noncurrent deferred tax assets	$ 251,000	$ 184,000
Unrecognized tax benefits that, if recognized, would affect effective tax rate	328,000	257,000
Accrued payment of potential interest and penalties	52,000	47,000
Interest and penalties recognized	5,000	(6,000)
Gross unrecognized tax benefits
Balance at the beginning of the year	319,000	281,000	$ 218,000
Increases for tax positions taken in prior years	22,000	14,000	106,000
Decreases for tax positions taken in prior years		(3,000)	(53,000)
Increases for tax positions taken in the current year	68,000	46,000	41,000
Lapse in statute of limitations	(15,000)	(19,000)	(31,000)
Balance at the end of the year	$ 394,000	$ 319,000	$ 281,000

Commitments and Contingencies -

Commitments and Contingencies - Litigation (Details) - The City Of Detroit	1 Months Ended
	Nov. 30, 2015USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 124,000
Number of days prior to the City's bankruptcy filing	90 days

Commitments and Contingencies46

Commitments and Contingencies - Operating leases and related party Transactions (Details)	Jun. 30, 2015USD ($)	Apr. 01, 2014	Feb. 28, 2014USD ($)ft²	May 31, 2007USD ($)ft²	Mar. 31, 2016USD ($)directorsubsidiary	Mar. 31, 2015USD ($)	Aug. 31, 2014USD ($)	Mar. 31, 2014USD ($)	Jul. 23, 2013USD ($)
Operating Leases
Area of office space \| ft²				52,000
Term of lease		96 months		88 months
Monthly lease rate during first year of lease			$ 76,000	$ 102,000
Maximum monthly lease rate during last year of lease					$ 90,000		$ 120,000
Reduced office space due to amendment of the lease agreement \| ft²			11,000
Tenant improvement allowance					328,000
Future minimum rental payments under non-cancelable operating leases
2,017					1,861,000
2,018					1,708,000
2,019					1,454,000
2,020					1,213,000
2,021					1,161,000
Thereafter					1,153,000
Total					8,550,000
Total rental expense					$ 1,700,000	$ 1,700,000		$ 1,900,000
Maxxess
Related Party Transactions
Number of former subsidiaries \| subsidiary					1
Number of current directors included in investor group \| director					1
Number of former directors included in investor group \| director					1
Promissory note payable issued to reporting entity for amounts previously owed under a sublease agreement					$ 219,000				$ 274,000
Interest on promissory note (as a percent)					6.00%
Professional services cost					$ 54,000
Maxxess \| Minimum
Related Party Transactions
Gross proceeds from financing by related party					$ 10,000,000
Maxxess \| Maximum
Related Party Transactions
Professional services hours	300 hours
Professional services cost	$ 102,600

Commitments and Contingencies47

Commitments and Contingencies - Inventory purchase commitments (Details) $ in Millions	Mar. 31, 2016USD ($)
Inventory
Inventory Purchase Commitments
Firm commitments to purchase inventory, operating assets and other supplies	$ 4.4

Stockholders' Equity (Details)

Stockholders' Equity (Details)	1 Months Ended
Stockholders' Equity (Details)	Aug. 31, 2009itemshares	Mar. 31, 2016shares	Mar. 31, 2015shares
Common stock reserved for future issuance
Stock options outstanding (in shares)		3,309,000
Restricted stock units outstanding (in shares)		173,000
Authorized for future issuance under stock incentive plans (in shares)		902,000
Common stock reserved for future issuance (in shares)		4,384,000
Preferred Stock
Authorized shares of preferred stock		2,000,000	2,000,000
Outstanding shares of preferred stock		0	0
Stockholder Rights Plan
Common Stock Warrants
Number of preferred stock purchase rights distributed as dividend for each shares of common stock held (in shares)	1
Number of shares of Series A Junior Participating Preferred Stock that each right will enable the holder to buy	0.001
Number of series of junior participating preferred stock eliminated \| item	2

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				12 Months Ended
	Sep. 30, 2015	Oct. 31, 2014	Sep. 30, 2012	Sep. 30, 2009	Mar. 31, 2016
Employee Benefit Plans
Shares of common stock available for grant					902,000
Number of Options
Options outstanding at the end of the period (in shares)					3,309,000
Number of Shares
RSUs outstanding at the end of the period (in shares)					173,000
Stock options
Number of Options
Options outstanding at the beginning of the period (in shares)					2,199,000
Granted (in shares)					1,808,000
Exercised (in shares)					(243,000)
Forfeited (in shares)					(79,000)
Expired (in shares)					(376,000)
Options outstanding at the end of the period (in shares)					3,309,000
Options exercisable at the end of the period (in shares)					1,057,000
Vested and expected to vest at the end of the period (in shares)					2,948,000
Options exercisable at the end of the period pursuant to a change-in-control (in shares)					3,309,000
Weighted Average Exercise Price Per Share
Options outstanding at the beginning of the period (in dollars per share)					$ 1.83
Granted (in dollars per share)					2.35
Exercised (in dollars per share)					1.58
Forfeited (in dollars per share)					1.82
Expired (in dollars per share)					2.36
Options outstanding at the end of the period (in dollars per share)					2.07
Options exercisable at the end of the period (in dollars per share)					1.70
Vested and expected to vest at the end of the period (in dollars per share)					$ 2.05
Weighted Average Remaining Contractual Life
Options outstanding at the end of the period					8 years 1 month 6 days
Options exercisable at the end of the period					5 years 10 months 24 days
Vested and expected to vest at the end of the period					8 years
Aggregate Intrinsic Value
Options outstanding at the end of the period (in dollars)					$ 1,222
Options exercisable at the end of the period (in dollars)					788
Vested and expected to vest at the end of the period (in dollars)					1,167
Options exercisable at the end of the period pursuant to a change-in-control (in dollars)					$ 1,222
Stock options \| Change in Control
Weighted Average Exercise Price Per Share
Options exercisable at the end of the period (in dollars per share)					$ 2.07
Weighted Average Remaining Contractual Life
Options exercisable at the end of the period					8 years 1 month 6 days
Restricted stock units
Number of Shares
RSUs outstanding at the beginning of the period (in shares)					194,000
Granted (in shares)					63,000
Vested (in shares)					(66,000)
Forfeited (in shares)					(18,000)
RSUs outstanding at the end of the period (in shares)					173,000
Expected to vest at the end of the period (in shares)					150,000
Weighted Average Price Per Share
RSUs outstanding at the beginning of the period (in dollars per share)					$ 1.74
Granted (in dollars per share)					2.37
Vested (in dollars per share)					1.61
Forfeited (in dollars per share)					1.84
RSUs outstanding at the end of the period (in dollars per share)					2
Expected to vest at the end of the period (in dollars per share)					$ 1.99
Weighted Average Remaining Life
RSUs outstanding at the end of the period					2 years 6 months
Expected to vest at the end of the period					2 years 4 months 24 days
Aggregate Intrinsic Value
RSUs outstanding at the end of the period (in dollars)					$ 273
Expected to vest at the end of the period (in dollars)					$ 245
Restricted stock units \| Change in Control
Number of Shares
Common stock issuable (for RSUs) at the end of the period upon a change-in-control (in shares)					173,000
Weighted Average Price Per Share
Vested (in dollars per share)					$ 2
Weighted Average Remaining Life
RSUs outstanding at the end of the period					2 years 6 months
Aggregate Intrinsic Value
Common stock issuable (for RSUs) at the end of the period upon a change-in-control (in dollars)					$ 273
2007 Plan
Employee Benefit Plans
Increase in number of shares of common stock authorized and reserved for issuance under the plan	1,000,000	1,500,000	800,000	800,000
Total shares authorized under the plan	4,950,000	3,950,000	2,450,000	1,650,000
Shares of common stock available for grant					902,000
2007 Plan \| Stock options
Employee Benefit Plans
Vesting percentage					25.00%
Vesting period					4 years
Number of Options
Options outstanding at the end of the period (in shares)					3,287,000
2007 Plan \| Stock options \| Maximum
Employee Benefit Plans
Expiration term					10 years
2007 Plan \| Restricted stock units
Employee Benefit Plans
Vesting percentage					25.00%
Vesting period					4 years
Aggregate Intrinsic Value
Number of shares of common stock receivable upon vesting of each RSU					1
Number of Shares
RSUs outstanding at the end of the period (in shares)					173,000
1997 Plan
Employee Benefit Plans
Options or other stock-based awards granted (in shares)					0
1997 Plan \| Stock options
Number of Options
Options outstanding at the end of the period (in shares)					23,000

Employee Benefit Plans - Stock-

Employee Benefit Plans - Stock-Based Compensation (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation
Stock-based compensation expense	$ 659,000	$ 398,000	$ 300,000
Unrecognized compensation expense	$ 265,000
Weighted average period over which compensation expense is expected to be recognized	3 years 1 month 6 days
Cost of revenues
Stock-Based Compensation
Stock-based compensation expense	$ 42,000	21,000	30,000
Selling, general and administrative expense.
Stock-Based Compensation
Stock-based compensation expense	567,000	315,000	246,000
Research and development expense.
Stock-Based Compensation
Stock-based compensation expense	$ 50,000	$ 62,000	$ 24,000

Employee Benefit Plans - Stock

Employee Benefit Plans - Stock options granted (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Weighted average assumptions used in estimating the grant date fair value of stock options granted
Expected life - years	7 years 2 months 12 days	7 years 8 months 12 days	7 years
Risk-free interest rate (as a percent)	1.90%	2.00%	2.00%
Expected volatility of common stock (as a percent)	47.00%	50.00%	51.00%
Fair value and intrinsic value information
Weighted average grant date fair value per share of options granted (in dollars per share)	$ 1.19	$ 1.01	$ 0.99
Intrinsic value of options exercised (in dollars)	$ 135	$ 9	$ 281

Employee Benefit Plans - Employ

Employee Benefit Plans - Employee incentive programs (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Profit Sharing Plan
Employee incentive programs
Employer contribution under plan (in dollars)	$ 0	$ 0	$ 0
401 (k) Plan
Employee incentive programs
Employer contribution under plan (in dollars)	$ 716,000	$ 495,000	$ 504,000
Employer matching contribution (as a percent)	50.00%
Vesting period of employer matching contributions	3 years

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 06, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Aug. 31, 2012	Mar. 31, 2016	Aug. 09, 2012	Aug. 31, 2011
Stock Repurchase Program
Number of shares acquired		656,000	473,000	196,000		3,422,000
Increase in the authorized amount for repurchase of common stock	$ 3,000
Value of common stock repurchased		$ 1,195	$ 863	$ 339		$ 5,600
Average price per share of common stock repurchased (in dollars per share)						$ 1.63
Value of common stock available for repurchase under current program		$ 1,700				$ 1,700
Maximum
Stock Repurchase Program
Value of common stock approved under stock repurchase program							$ 3,000
August 2011 Program
Stock Repurchase Program
Number of shares acquired					964,000
Value of common stock repurchased					$ 1,300
August 2011 Program \| Maximum
Stock Repurchase Program
Value of common stock approved under stock repurchase program								$ 3,000

Business Segments, Significan54

Business Segments, Significant Customer and Geographic Information - Business segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)	Mar. 31, 2014USD ($)
Business Segments
Number of reportable segments \| segment									3
Revenues	$ 19,796	$ 19,014	$ 20,573	$ 18,365	$ 18,045	$ 17,540	$ 18,550	$ 18,116	$ 77,748	$ 72,251	$ 68,228
Depreciation									649	525	768
Segment operating income (loss)									(3,470)	(2,079)	2,024
Operating segments
Business Segments
Depreciation									449	376	487
Segment operating income (loss)									4,369	6,092	7,579
Operating segments \| Roadway Sensors
Business Segments
Revenues									40,259	36,370	31,769
Depreciation									152	119	208
Segment operating income (loss)									7,718	6,302	5,791
Operating segments \| Transportation Systems
Business Segments
Revenues									32,330	30,294	30,524
Depreciation									136	115	161
Segment operating income (loss)									4,031	4,239	3,363
Operating segments \| Performance Analytics
Business Segments
Revenues									5,159	5,587	5,935
Depreciation									161	142	118
Segment operating income (loss)									$ (7,380)	$ (4,449)	$ (1,575)

Business Segment Information -

Business Segment Information - Reconciliation of total segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Business Segments
Total income from reportable segments	$ (3,470)	$ (2,079)	$ 2,024
Amortization of intangible assets	(360)	(431)	(627)
Change in fair value of acquisition contingent consideration		(9)	(25)
Other (expense) income, net	2	(20)
Interest income, net	12	6
(Loss) income from continuing operations before income taxes	(3,456)	(2,093)	2,024
Operating segments
Business Segments
Total income from reportable segments	4,369	6,092	7,579
Unallocated amounts
Business Segments
Corporate and other expenses	(7,479)	(7,731)	(4,903)
Amortization of intangible assets	(360)	(431)	(627)
Change in fair value of acquisition contingent consideration		(9)	(25)
Other (expense) income, net	2	(20)
Interest income, net	12	6
(Loss) income from continuing operations before income taxes	$ (3,456)	$ (2,093)	$ 2,024

Business Segments - Significant

Business Segments - Significant Customer and Geographic Information (Details) - Net sales and contract revenues - Customer - item	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Customer concentration
Number of customers or government agencies		1	1
Concentration Risk, Percentage	10.00%	10.00%	11.00%

Business Segments - Percentage

Business Segments - Percentage of Revenue by Geographic region (Details) - Total Revenues	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Percentage of revenues by geographic region derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.
Percentage of total net sales and contract revenues	1.00%	3.00%	5.00%
Middle East
Percentage of revenues by geographic region derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.
Percentage of total net sales and contract revenues	1.00%	3.00%	4.00%
Other
Percentage of revenues by geographic region derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.
Percentage of total net sales and contract revenues			1.00%

Quarterly Financial Data (Una58

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Quarterly Financial Data (Unaudited)
Revenues	$ 19,796	$ 19,014	$ 20,573	$ 18,365	$ 18,045	$ 17,540	$ 18,550	$ 18,116	$ 77,748	$ 72,251	$ 68,228
Gross Profit	7,938	7,211	7,883	7,637	7,214	6,862	7,299	6,807	30,669	28,182	25,974
Net (loss) income	$ (1,292)	$ (10,442)	$ (395)	$ (192)	$ (766)	$ (98)	$ (187)	$ (19)	$ (12,321)	$ (1,070)	$ 1,409
Basic Net (Loss) Income per Share (in dollars per share)	$ (0.04)	$ (0.33)	$ (0.01)	$ (0.01)	$ (0.02)		$ (0.01)		$ (0.39)	$ (0.03)
Diluted Net (Loss) Income per Share (in dollars per share)	$ (0.04)	$ (0.33)	$ (0.01)	$ (0.01)	$ (0.02)		$ (0.01)		$ (0.39)	$ (0.03)