Iteris (ITI) 10-Q 9 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Feb. 06, 2017
Document and Entity Information
Entity Registrant Name	ITERIS, INC.
Entity Central Index Key	350,868
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		32,239,460
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 17,881	$ 16,029
Trade accounts receivable, net of allowance for doubtful accounts of $328 and $714 at December 31, 2016 and March 31, 2016, respectively	12,443	13,241
Costs and estimated earnings in excess of billings on uncompleted contracts	6,031	5,250
Inventories	2,753	3,153
Prepaid expenses and other current assets	2,016	1,505
Total current assets	41,124	39,178
Property and equipment, net	2,078	2,139
Intangible assets, net	1,011	951
Goodwill	17,318	17,318
Other assets	278	434
Total assets	61,809	60,020
Current liabilities:
Trade accounts payable	6,809	5,469
Accrued payroll and related expenses	5,850	5,719
Accrued liabilities	1,716	1,445
Billings in excess of costs and estimated earnings on uncompleted contracts	2,950	2,294
Total current liabilities	17,325	14,927
Deferred rent	674	750
Deferred income taxes	695	685
Unrecognized tax benefits	210	196
Total liabilities	18,904	16,558
Commitments and contingencies (Note 7)
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 December 31, 2016 and March 31, 2016 Issued and outstanding shares - 32,229 at December 31, 2016 and 32,048 at March 31, 2016	3,224	3,205
Additional paid-in capital	136,306	135,424
Accumulated deficit	(96,625)	(95,167)
Total stockholders' equity	42,905	43,462
Total liabilities and stockholders' equity	$ 61,809	$ 60,020

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Consolidated Balance Sheets
Trade accounts receivable, allowance for doubtful accounts (in dollars)	$ 328	$ 714
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	32,229	32,048
Common stock, outstanding shares	32,229	32,048

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Operations
Total revenues	$ 22,691	$ 19,014	$ 70,678	$ 57,952
Cost of revenues	14,071	11,803	43,194	35,220
Gross profit	8,620	7,211	27,484	22,732
Operating expenses:
Selling, general and administrative	8,035	6,400	23,698	19,176
Research and development	1,979	1,853	5,287	5,428
Amortization of intangible assets	80	92	248	276
Total operating expenses	10,094	8,345	29,233	24,880
Operating loss	(1,474)	(1,134)	(1,749)	(2,148)
Non-operating income (expense):
Other (expense) income, net	(1)	(3)	(7)	1
Interest income, net	4	3	9	10
Loss from continuing operations before income taxes	(1,471)	(1,134)	(1,747)	(2,137)
Benefit (expense) for income taxes	4	(9,365)	11	(9,055)
Loss from continuing operations	(1,467)	(10,499)	(1,736)	(11,192)
Gain on sale of discontinued operation, net of tax	87	57	278	163
Net loss	$ (1,380)	$ (10,442)	$ (1,458)	$ (11,029)
Loss share from continuing operations - basic and diluted	$ (0.05)	$ (0.33)	$ (0.05)	$ (0.35)
Gain per share from sale of discontinued operation - basic and diluted (in dollars per share)	0.01	0	0.01	0.01
Net loss per share - basic and diluted	$ (0.04)	$ (0.33)	$ (0.04)	$ (0.34)
Shares used in basic and diluted per share calculations	32,205	32,013	32,125	32,051

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net loss	$ (1,458)	$ (11,029)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income taxes	24	8,874
Depreciation of property and equipment	544	482
Stock-based compensation	718	429
Amortization of intangible assets	512	400
Gain on sale of discontinued operation, net of tax	(278)	(163)
Loss on disposal of equipment	14	57
Changes in operating assets and liabilities, net of effects of discontinued operation:
Accounts receivable	798	(645)
Net costs and estimated earnings in excess of billings	(125)	1,077
Inventories	400	18
Prepaid expenses and other assets	(275)	(396)
Accounts payable and accrued expenses	1,500	(1,436)
Net cash provided by (used in) operating activities	2,374	(2,332)
Cash flows from investing activities
Purchases of property and equipment	(497)	(673)
Capitalized software development costs	(572)
Net proceeds from sale of discontinued operation	364	284
Net cash used in investing activities	(705)	(389)
Cash flows from financing activities
Repurchases of common stock		(1,194)
Proceeds from stock option exercises	238	367
Tax withholding payments for net share settlements of restricted stock units	(55)	(32)
Net cash provided by (used in) financing activities	183	(859)
Increase (decrease) in cash and cash equivalents	1,852	(3,580)
Cash and cash equivalents at beginning of period	16,029	21,961
Cash and cash equivalents at end of period	17,881	18,381
Supplemental cash flow information:
Interest	14	10
Income taxes	$ 52	$ 177

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Dec. 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 wholly-owned subsidiary, Iteris Michigan, LLC, in this report 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. 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. We believe our products, services and solutions, in conjunction with sound traffic management, minimize the environmental impact of traffic congestion. 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 unaudited consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary, and have been prepared in accordance with the rules of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting, which permit certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“GAAP”) to be condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2016 (“Fiscal 2016”), filed with the SEC on June 20, 2016. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine month periods ended December 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2017 (“Fiscal 2017”) or any other periods. The results of continuing operations for all periods presented in the unaudited consolidated financial statements exclude our former vehicle sensors operation, which has been classified as a discontinued operation. See Note 3, “Sale of Vehicle Sensors,” for further discussion related to the discontinued operation presentation. As of April 1, 2016, certain operations that were previously within the Agriculture and Weather Analytics segment (formerly known as our Performance Analytics segment), specifically our performance measurement and information management solution, iPeMS, and related traffic analytic consulting services, were reassigned to the Transportation Systems segment to better align our traffic analytics capabilities, resources and initiatives. All prior segment information presented in this report has been reclassified to reflect this change. 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. 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. 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. We have historically had a diverse customer base. For the three and nine months ended December 31, 2016, one individual customer represented greater than 10% of our total revenues. For the three and nine months ended December 31, 2015, no individual customer represented more than 10% of our total revenues. 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 Included in prepaid expenses and other current assets was approximately $540,000 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 our fiscal year end March 31, 2017. 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 December 31, 2016, management determined that no adjustments to the carrying value of its goodwill and intangible assets were required. However, if the Agriculture and Weather Analytics reporting unit is unable to continue signing new contracts, it is possible that the carrying values of its related assets, including goodwill, could be reduced following our annual fourth fiscal quarter impairment testing or within the next 12 months. 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 December 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. 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 unaudited 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 unaudited statements of operations. 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 unaudited consolidated balance sheets. 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. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , which amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. 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 or 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. We 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 February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The pronouncement requires an entity to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. We are currently evaluating the impact of ASU 2016-02 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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Recipts and Cash Payments (“ASU 2016-15”), which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), requiring restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU 2016-18 on our consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-19, Technical Corrections and Improvements (“ASU 2016-19”), which clarifies guidance, corrects errors and makes minor improvements affecting a variety of topics in the Accounting Standards Codification. The new standard is effective upon issuance (December 14, 2016) for amendments that do not have transition guidance, with all other amendments effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of ASU 2016-19 on our consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), which allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU 2016-20 on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), eliminating the second step of the goodwill impairment test, and eliminating the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of ASU 2017-04 on our consolidated financial statements.

Supplemental Financial Informat

Supplemental Financial Information	9 Months Ended
	Dec. 31, 2016
Supplemental Financial Information
Supplemental Financial Information	2. Supplemental Financial Information Inventories The following table presents details of our inventories: December 31, March 31, 2016 2016 (In thousands) Materials and supplies $ $ Work in process Finished goods $ $ Intangible Assets There are no indefinite lived intangible assets on our unaudited consolidated balance sheets. The following table presents details of our net intangible assets: December 31, 2016 March 31, 2016 Gross Accumulated Gross Accumulated (In thousands) Technology $ $ ) $ $ ) Customer contracts / relationships ) ) Trade names and non-compete agreements ) ) Capitalized software development costs ) ) Total $ $ ) $ $ ) As of December 31, 2016, future estimated amortization expense is as follows: Fiscal Year Ending March 31, (In thousands) Remainder of 2017 $ 2018 2019 2020 Thereafter — $ Warranty Reserve Activity Warranty reserve was recorded as accrued liabilities in the accompanying unaudited consolidated balance sheets. The following table presents activity related to the warranty reserve: Nine Months Ended December 31, 2016 2015 (In thousands) Balance at beginning of fiscal year $ $ Additions charged to cost of sales Warranty claims ) ) Balance at end of period $ $ Comprehensive Income Comprehensive income is equal to net income for all periods presented in the accompanying unaudited consolidated statements of operations. Loss Per Share The following table sets forth the reconciliation of weighted average common shares used in basic per share computations and weighted average common shares used in diluted per share computations in the unaudited consolidated financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Denominator: Weighted average common shares used in basic computation Dilutive stock options — — — — Dilutive restricted stock units — — — — Weighted average common shares used in diluted computation The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted loss from continuing operations per share as their effect would have been anti-dilutive: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Stock options Restricted stock units

Sale of Vehicle Sensors

Sale of Vehicle Sensors	9 Months Ended
	Dec. 31, 2016
Sale of Vehicle Sensors
Sale of Vehicle Sensors	3. Sale of Vehicle Sensors On July 29, 2011, we completed the sale (the “Asset 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 December 31, 2016, we received approximately $2.0 million in connection with the royalty related earn-out provisions for a total of $15.7 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 at the time of the Asset Sale, qualified as a discontinued operation. For the nine months ended December 31, 2016 and 2015, we recorded a gain on sale of discontinued operation of approximately $278,000 and $163,000, respectively, net of tax, related to the earn-out provisions of the asset purchase agreement for the Asset Sale.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Fair Value Measurements	4. 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. 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 nine months ended December 31, 2016 and 2015.

Credit Facility

Credit Facility	9 Months Ended
	Dec. 31, 2016
Credit Facility
Credit Facility	5. Credit Facility We had a $12.0 million revolving line of credit with California Bank & Trust (“CB&T”), which expired on October 1, 2016. We chose not to renew our line of credit as we do not foresee a need to utilize credit within the next twelve months. As of December 31, 2016 and 2015, no amounts were outstanding under the credit facility with CB&T.

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	6. Income Taxes The following table sets forth our benefit (expense) for income taxes, along with the corresponding effective tax rates: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands, except percentages) Benefit for income taxes $ $ $ $ Change in valuation allowance ) ) ) ) Total benefit (expense) for income taxes $ $ ) $ $ ) Effective tax rate % )% % )% On an interim basis, we estimate what our anticipated annual effective tax rate will be, while also separately considering applicable discrete and other non-recurring items, and record a quarterly income tax provision in accordance with the anticipated annual rate. As the fiscal year progresses, we refine our estimates based on actual events and financial results during the year. This process can result in significant changes to our expected effective tax rate. When this occurs, we adjust our income tax provision during the quarter in which our estimates are refined so that the year-to-date provision reflects the expected annual effective tax rate. These changes, along with adjustments to our deferred taxes, among others, may create fluctuations in our overall effective tax rate from quarter to quarter. 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. We have experienced a cumulative pre-tax loss over the trailing three years. As such, we consider it appropriate to continue to maintain a valuation allowance against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2016
Commitments and Contingencies:
Commitments and Contingencies	7. Commitments and Contingencies Litigation and Other Contingencies On September 15, 2016, a stockholder class action and derivative action (captioned Ionni v. Bergera, et al., Case No. 16-cv00807-RGA) was filed in the United States District Court for the District of Delaware (the “Court”) against certain of the Company’s current and former directors and officers (the “Individual Defendants”) and the Company as a nominal defendant (together with the Individual Defendants, the “Defendants”). The complaint asserts claims for breach of fiduciary duty and unjust enrichment. Plaintiff contends that, in 2014 and 2015, the Individual Defendants caused the Company to issue purportedly false and misleading proxy statements in connection with the Company’s annual meeting of stockholders in 2014 and 2015 (collectively, the “Proxy Statements”). In those Proxy Statements, the Company’s stockholders were asked to approve amendments (the “Amendments”) to increase the number of shares of the Company’s common stock reserved for issuance under the Iteris, Inc. 2007 Omnibus Incentive Plan (the “2007 Plan”). Among other things, Plaintiff alleges that the Proxy Statements were materially false and misleading because they affirmatively represented that no person could receive more than 500,000 stock options or SARs under the 2007 Plan in any fiscal year (the “Share Limit”) and failed to disclose that the Compensation Committee had the discretion to approve an annual grant to a 2007 Plan participant in excess of that amount. Plaintiff contends that, in voting to approve the Amendments, the Company’s stockholders were not fully informed and, therefore, the Amendments were not valid. Plaintiff seeks rescission of any stock options granted pursuant to the Amendments, including the option to purchase up to 1,350,000 shares of the Company’s common stock that was granted in September 2015 to Mr. Bergera (the “CEO Option”) in connection with his appointment to serve as President and Chief Executive Officer of the Company. The Individual Defendants deny that they breached their fiduciary duties and the Company believes the Amendments were properly approved and that all of the options granted pursuant to the Amendments, including the CEO Option, were valid. Nonetheless, to eliminate the burden, expense and uncertainty of the litigation, on November 8, 2016, the parties entered into a Memorandum of Understanding setting forth their agreement in principle to resolve the litigation. In consideration for a release of claims and dismissal of this litigation with prejudice, the Company agreed to submit a proposal at its 2016 Annual Meeting of Stockholders seeking stockholder approval for that portion of the CEO Option that exceeds the Share Limit (i.e., the 850,000 options above the Share Limit (the “Excess Shares”)). The Company submitted a proposal of the Excess Shares for approval by the Company stockholders at the 2016 Annual Meeting of Stockholders. On December 15, 2016, the Company’s stockholders approved the Excess Shares. The settlement is still subject to final approval of the Court. Pursuant to the Memorandum of Understanding, the parties thereto have agreed that the Plaintiff is entitled to an award of reasonable attorneys’ fees and reimbursement of expenses in connection with this litigation. However, the parties have not had any discussions concerning the amount of such fees and expenses. The Company believes that any such fees and expenses will not be material. As a result, the Company has not accrued any amounts in connection with these legal proceedings other than the Company’s ongoing attorneys’ fees. 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, the Company is not currently a party to any other legal proceeding, the outcome of which, in management’s opinion, individually or in the aggregate, would have a material effect on the Company’s unaudited consolidated results of operations, financial position or cash flows. Related Party Transaction We previously subleased office space to Maxxess Systems, Inc. (“Maxxess”), one of our former subsidiaries that we sold in September 2003. 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 payable quarterly on the first business day of each calendar quarter. Maxxess continues to pay down the balance of this note by providing consulting services to Iteris, although we have previously fully reserved for amounts owed to us by Maxxess and the outstanding principal balance remains fully reserved. As of December 31, 2016, approximately $146,000 of the original principal balance was outstanding and payable to Iteris. Maxxess is currently owned by an investor group that includes one former Iteris director, who has not been a director of Iteris since September 2013, and one existing director of Iteris, who currently owns less than 2% of Maxxess’ capital stock.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation We currently maintain two stock incentive plans, the 2007 Plan and the 2016 Omnibus Incentive Plan (the “2016 Plan”). Of these plans, we may only grant future awards from the 2016 Plan. As of 2016 Annual Meeting of Stockholders, no future shares could be granted under the 2007 Plan. The 2016 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), cash incentive awards and other stock-based awards. At December 31, 2016, no awards had been granted under the 2016 Plan and there were approximately 3.4 million shares of common stock available for grant or issuance under the 2016 Plan. Total stock options vested and expected to vest were approximately 3.0 million as of December 31, 2016. Stock Options A summary of activity with respect to our stock options for the nine months ended December 31, 2016 is as follows: Number of Weighted (In thousands) Options outstanding at March 31, 2016 $ Granted Exercised ) Forfeited ) Expired ) Options outstanding at December 31, 2016 $ Restricted Stock Units A summary of activity with respect to our RSUs, which entitle the holder to receive one share of our common stock for each RSU upon vesting, for the nine months ended December 31, 2016 is as follows: Number of (In thousands) RSUs outstanding at March 31, 2016 Granted Vested ) Forfeited ) RSUs outstanding at December 31, 2016 Stock-Based Compensation Expense The following table presents stock-based compensation expense that is included in each line item on our unaudited consolidated statements of operations: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Cost of revenues $ $ $ $ Selling, general and administrative expense Research and development expense Total stock-based compensation expense $ $ $ $ At December 31, 2016, there was approximately $1.5 million and $151,000 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 2.5 years for stock options and 2.1 years for RSUs.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Dec. 31, 2016
Stock Repurchase Program
Stock Repurchase Program	9. 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 $3.0 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 $3.0 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 our existing stock repurchase program, pursuant to which we may continue to acquire shares of its outstanding common stock from time to time for an unspecified length of time. For the three and nine months ended December 31, 2016, we did not repurchase any shares. During the three months ended December 31, 2015, we did not repurchase any shares, and during the nine months ended December 31, 2015, we repurchased approximately 656,000 shares of our common stock. As of December 31, 2016, approximately $1.7 million remained available for the repurchase of our common stock under our current stock purchase program. 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 December 31, 2016, all repurchased shares have been retired and resumed their status as authorized and unissued shares of our common stock.

Business Segments Information

Business Segments Information	9 Months Ended
	Dec. 31, 2016
Business Segment Information
Business Segment Information	10. Business Segment Information We currently operate in three reportable segments: Roadway Sensors, Transportation Systems, and Agriculture and Weather Analytics (formerly known as Performance Analytics). The Roadway Sensors segment provides hardware and software products to multiple segments of the ITS market. These products primarily consist of various vehicle detection and information systems are used for traffic intersection control, communication and roadway traffic data collection applications. These include, among other products, our Vantage, VantageNext, VersiCam, Vantage Vector, SmartCycle, PedTrax, SmartSpan, Pegasus, Velocity, P10 and P100 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. As of April 1, 2016, our performance measurement and information management solution, iPeMS, and related traffic analytic consulting services, previously included in Agriculture and Weather segment, were reassigned to the Transportation Systems segment to better align our traffic analytics capabilities, resources and initiatives. Prior segment information has been reclassified to reflect this change. The Agriculture and Weather Analytics segment includes ClearPath Weather, our road-maintenance applications, and ClearAg, our precision agriculture solutions. 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. Our Chief Executive Officer, who is our chief operating decision maker (“CODM”), reviews financial information at the operating segment level. Our CODM does not review assets by segment in his resource allocation, and therefore assets by segment are not disclosed below. The following table sets forth selected unaudited consolidated financial information for our reportable segments for the three and nine months ended December 31, 2016 and 2015: Roadway Transportation Agriculture Total (In thousands) Three Months Ended December, 2016 Revenues $ $ $ $ Segment income (loss) ) Three Months Ended December 31, 2015 Revenues $ $ $ $ Segment income (loss) ) Nine Months Ended December, 2016 Revenues $ $ $ $ Segment income (loss) ) Nine Months Ended December 31, 2015 Revenues $ $ $ $ Segment income (loss) ) The following table reconciles total segment income to unaudited consolidated income from continuing operations before income taxes: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Segment income: Total income from reportable segments $ $ $ $ Unallocated amounts: Corporate and other expenses ) ) ) ) Amortization of intangible assets ) ) ) ) Other (expense) income, net ) ) ) Interest income, net Loss from continuing operations before income taxes $ ) $ ) $ ) $ )

Description of Business and S16

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2016
Description of Business and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Our unaudited consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary, and have been prepared in accordance with the rules of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting, which permit certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“GAAP”) to be condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2016 (“Fiscal 2016”), filed with the SEC on June 20, 2016. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and nine month periods ended December 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2017 (“Fiscal 2017”) or any other periods. The results of continuing operations for all periods presented in the unaudited consolidated financial statements exclude our former vehicle sensors operation, which has been classified as a discontinued operation. See Note 3, “Sale of Vehicle Sensors,” for further discussion related to the discontinued operation presentation. As of April 1, 2016, certain operations that were previously within the Agriculture and Weather Analytics segment (formerly known as our Performance Analytics segment), specifically our performance measurement and information management solution, iPeMS, and related traffic analytic consulting services, were reassigned to the Transportation Systems segment to better align our traffic analytics capabilities, resources and initiatives. All prior segment information presented in this report has been reclassified to reflect this change.
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. 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. 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. We have historically had a diverse customer base. For the three and nine months ended December 31, 2016, one individual customer represented greater than 10% of our total revenues. For the three and nine months ended December 31, 2015, no individual customer represented more than 10% of our total revenues.
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 Included in prepaid expenses and other current assets was approximately $540,000 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 our fiscal year end March 31, 2017.
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 December 31, 2016, management determined that no adjustments to the carrying value of its goodwill and intangible assets were required. However, if the Agriculture and Weather Analytics reporting unit is unable to continue signing new contracts, it is possible that the carrying values of its related assets, including goodwill, could be reduced following our annual fourth fiscal quarter impairment testing or within the next 12 months. 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 December 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. 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 unaudited 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 unaudited statements of operations.
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 unaudited consolidated balance sheets.
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. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , which amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. 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 or 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. We 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 February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). The pronouncement requires an entity to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. We are currently evaluating the impact of ASU 2016-02 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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Recipts and Cash Payments (“ASU 2016-15”), which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact of ASU 2016-09 on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), requiring restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU 2016-18 on our consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-19, Technical Corrections and Improvements (“ASU 2016-19”), which clarifies guidance, corrects errors and makes minor improvements affecting a variety of topics in the Accounting Standards Codification. The new standard is effective upon issuance (December 14, 2016) for amendments that do not have transition guidance, with all other amendments effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of ASU 2016-19 on our consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), which allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU 2016-20 on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), eliminating the second step of the goodwill impairment test, and eliminating the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of ASU 2017-04 on our consolidated financial statements.

Supplemental Financial Inform17

Supplemental Financial Information (Tables)	9 Months Ended
	Dec. 31, 2016
Supplemental Financial Information
Schedule of inventories	December 31, March 31, 2016 2016 (In thousands) Materials and supplies $ $ Work in process Finished goods $ $
Schedule of intangible assets	December 31, 2016 March 31, 2016 Gross Accumulated Gross Accumulated (In thousands) Technology $ $ ) $ $ ) Customer contracts / relationships ) ) Trade names and non-compete agreements ) ) Capitalized software development costs ) ) Total $ $ ) $ $ )
Schedule of future estimated amortization expense	Fiscal Year Ending March 31, (In thousands) Remainder of 2017 $ 2018 2019 2020 Thereafter — $
Schedule of warranty reserve activity	Nine Months Ended December 31, 2016 2015 (In thousands) Balance at beginning of fiscal year $ $ Additions charged to cost of sales Warranty claims ) ) Balance at end of period $ $
Schedule of computation of basic and diluted (loss) income from continuing operations per share	Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Denominator: Weighted average common shares used in basic computation Dilutive stock options — — — — Dilutive restricted stock units — — — — Weighted average common shares used in diluted computation
Schedule of instruments excluded in the computation of diluted income from continuing operations per share	Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Stock options Restricted stock units

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Dec. 31, 2016
Income Taxes
Schedule of reconciliation of income tax benefit (expense) to taxes computed at U.S federal statutory rates	Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands, except percentages) Benefit for income taxes $ $ $ $ Change in valuation allowance ) ) ) ) Total benefit (expense) for income taxes $ $ ) $ $ ) Effective tax rate % )% % )%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Summary of activity in the plans with respect to stock options	Number of Weighted (In thousands) Options outstanding at March 31, 2016 $ Granted Exercised ) Forfeited ) Expired ) Options outstanding at December 31, 2016 $
Summary of activity with respect to RSUs	Number of (In thousands) RSUs outstanding at March 31, 2016 Granted Vested ) Forfeited ) RSUs outstanding at December 31, 2016
Schedule of stock-based compensation expense	Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Cost of revenues $ $ $ $ Selling, general and administrative expense Research and development expense Total stock-based compensation expense $ $ $ $

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Dec. 31, 2016
Business Segment Information
Schedule of selected financial information for reportable segments	Roadway Transportation Agriculture Total (In thousands) Three Months Ended December, 2016 Revenues $ $ $ $ Segment income (loss) ) Three Months Ended December 31, 2015 Revenues $ $ $ $ Segment income (loss) ) Nine Months Ended December, 2016 Revenues $ $ $ $ Segment income (loss) ) Nine Months Ended December 31, 2015 Revenues $ $ $ $ Segment income (loss) )
Schedule of reconciliation of total segment income to consolidated income from continuing operations before income taxes	Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (In thousands) Segment income: Total income from reportable segments $ $ $ $ Unallocated amounts: Corporate and other expenses ) ) ) ) Amortization of intangible assets ) ) ) ) Other (expense) income, net ) ) ) Interest income, net Loss from continuing operations before income taxes $ ) $ ) $ ) $ )

Description of Business and S21

Description of Business and Summary of Significant Accounting Policies (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2016USD ($)customer	Dec. 31, 2016USD ($)customer
Prepaid Expenses and Other Current Assets
Cash designated as collateral on performance bonds	$ 540,000	$ 540,000
Percentage of cash value of the bonds as collateral		100.00%
Goodwill and Long-Lived Assets
Impairment of long-lived and intangible assets		$ 0
Total Revenues | Customer | One individual customer
Concentration of Credit Risk
Number of customers | customer	1	1
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
Minimum | Total Revenues | Customer | One individual customer
Concentration of Credit Risk
Percentage of total revenue	10.00%	10.00%

Supplemental Financial Inform22

Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Inventories
Materials and supplies	$ 1,437	$ 1,754
Work in process	276	217
Finished goods	1,040	1,182
Total inventories	$ 2,753	$ 3,153

Supplemental Financial Inform23

Supplemental Financial Information - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Intangible Assets
Gross Carrying Amount	$ 5,276	$ 4,704
Accumulated Amortization	(4,265)	(3,753)
Future estimated amortization expense
Remainder of 2017	124
2,018	449
2,019	370
2,020	68
Total	1,011	951
Technology
Intangible Assets
Gross Carrying Amount	1,856	1,856
Accumulated Amortization	(1,816)	(1,708)
Customer contracts / relationships
Intangible Assets
Gross Carrying Amount	750	750
Accumulated Amortization	(715)	(622)
Trade names and non-compete agreements
Intangible Assets
Gross Carrying Amount	1,110	1,110
Accumulated Amortization	(1,055)	(1,008)
Capitalized software development costs
Intangible Assets
Gross Carrying Amount	1,560	988
Accumulated Amortization	$ (679)	$ (415)

Supplemental Financial Inform24

Supplemental Financial Information - Warranty Reserve Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Activity related to warranty reserve
Balance at beginning of period	$ 193	$ 181
Additions charged to cost of sales	218	174
Warranty claims	(138)	(159)
Balance at end of period	$ 273	$ 196

Supplemental Financial Inform25

Supplemental Financial Information - Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Denominator:
Weighted average common shares used in basic computation (in shares)	32,205	32,013	32,125	32,051
Weighted average common shares used in diluted computation (in shares)	32,205	32,013	32,125	32,051

Supplemental Financial Inform26

Supplemental Financial Information - Earnings (Loss) Per Share Excluded weighted average (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
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	3,237	3,667	3,305	3,231
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	136	193	161	221

Sale of Vehicle Sensors (Detail

Sale of Vehicle Sensors (Details)	Jul. 29, 2011	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)segment
Sale of Vehicle Sensors
Net proceeds from sale of discontinued operation				$ 364,000	$ 284,000
Number of discontinued operations business segments | segment		1		1		1
Gain on the sale, net of tax		$ 87,000	$ 57,000	$ 278,000	163,000
Vehicle Sensors segment | 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						$ 2,000,000
Net proceeds from sale of discontinued operation						$ 15,700,000
Gain on the sale, net of tax				$ 278,000	$ 163,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Non-financial assets measured at fair value
Non-financial assets measured at fair value	$ 0	$ 0

Credit Facility (Details)

Credit Facility (Details) - Revolving Line of Credit - USD ($) $ in Millions	Dec. 31, 2016	Oct. 01, 2016	Dec. 31, 2015
Revolving Line of Credit
Maximum borrowing capacity		$ 12
Amount outstanding	$ 0		$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of income tax provision to taxes computed at U.S. federal statutory rates
Benefit for income taxes	$ 530	$ 700	$ 652	$ 1,010
Change in valuation allowance	(526)	(10,065)	(641)	(10,065)
Total benefit (expense) for income taxes	$ 4	$ (9,365)	$ 11	$ (9,055)
Effective tax rate (as a percent)	0.30%	(826.60%)	0.60%	(423.80%)

Commitments and Contingencies -

Commitments and Contingencies - Litigation (Details) - 2007 Plan - Proxy Statements - Pending Litigation - shares	Nov. 08, 2016	Sep. 30, 2015	Sep. 15, 2016
Loss Contingencies [Line Items]
Stock options authorized under the plan (in shares)			500,000
Mr. Bergera
Loss Contingencies [Line Items]
Excess options granted (in shares)	850,000
Mr. Bergera | Maximum
Loss Contingencies [Line Items]
Options granted (in shares)		1,350,000

Commitments and Contingencies32

Commitments and Contingencies - Related party Transactions (Details) - Maxxess	9 Months Ended
	Dec. 31, 2016USD ($)subsidiary	Jul. 23, 2013USD ($)
Related Party Transactions
Number of former subsidiaries | subsidiary	1
Promissory note payable issued to reporting entity for amounts previously owed under a sublease agreement | $	$ 146,000	$ 274,000
Interest on promissory note (as a percent)	6.00%
Maximum
Related Party Transactions
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	2.00%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options & RSUs (Details)	9 Months Ended
	Dec. 31, 2016plan$ / sharesshares
Employee Benefit Plans
Number of stock incentive plans | plan	2
Vested and expected to vest at the end of the period (in shares)	3,000,000
Stock options
Number of Options
Options outstanding at the beginning of the period (in shares)	3,309,000
Granted (in shares)	70,000
Exercised (in shares)	(130,000)
Forfeited (in shares)	(20,000)
Expired (in shares)	(13,000)
Options outstanding at the end of the period (in shares)	3,216,000
Weighted Average Exercise Price Per Share
Options outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 2.07
Granted (in dollars per share) | $ / shares	3.61
Exercised (in dollars per share) | $ / shares	1.83
Forfeited (in dollars per share) | $ / shares	1.85
Expired (in dollars per share) | $ / shares	2
Options outstanding at the end of the period (in dollars per share) | $ / shares	$ 2.12
Restricted stock units
Weighted Average Exercise Price Per Share
Number of shares of common stock receivable upon vesting of each RSU	1
Number of Shares
RSUs outstanding at the beginning of the period (in shares)	173,000
Granted (in shares)	3,000
Vested (in shares)	(68,000)
Forfeited (in shares)	(14,000)
RSUs outstanding at the end of the period (in shares)	94,000
2016 Plan
Employee Benefit Plans
Authorized for future issuance under stock incentive plans (in shares)	3,400,000

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Stock-Based Compensation
Total stock-based compensation expense	$ 232,000	$ 233,000	$ 718,000	$ 429,000
Stock options
Stock-Based Compensation
Unrecognized compensation expense related to unvested stock options	1,500,000		$ 1,500,000
Weighted average period over which compensation expense is expected to be recognized			2 years 6 months
Restricted stock units
Stock-Based Compensation
Unrecognized compensation expense related to unvested RSUs	151,000		$ 151,000
Weighted average period over which compensation expense is expected to be recognized			2 years 1 month 6 days
Cost of revenues
Stock-Based Compensation
Total stock-based compensation expense	15,000	13,000	$ 37,000	31,000
Selling, general and administrative expense.
Stock-Based Compensation
Total stock-based compensation expense	198,000	205,000	631,000	363,000
Research and development expense
Stock-Based Compensation
Total stock-based compensation expense	$ 19,000	$ 15,000	$ 50,000	$ 35,000

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 06, 2014	Dec. 31, 2016	Aug. 31, 2012	Aug. 31, 2011	Mar. 31, 2016	Aug. 09, 2012
Stock Repurchase Program
Number of shares of common stock repurchased		656,000			3,422,000
Value of common stock repurchased					$ 5.6
Average price per share of common stock repurchased (in dollars per share)					$ 1.63
August 2011 Program
Stock Repurchase Program
Value of common stock approved under stock repurchase program				$ 3
Number of shares of common stock repurchased				964,000
Value of common stock repurchased			$ 1.3
August 2012 Program
Stock Repurchase Program
Value of common stock approved under stock repurchase program						$ 3
Increase in the authorized amount for repurchase of common stock	$ 3
Value of common stock available for repurchase under current program		$ 1.7

Business Segment Information -

Business Segment Information - Business segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)
Business Segments
Number of reportable segments | segment			3
Revenues	$ 22,691	$ 19,014	$ 70,678	$ 57,952
Segment operating income (loss)	(1,474)	(1,134)	(1,749)	(2,148)
Operating segments
Business Segments
Revenues	22,691	19,014	70,678	57,952
Segment operating income (loss)	1,968	1,337	8,128	5,223
Operating segments | Roadway Sensors
Business Segments
Revenues	9,397	9,771	30,897	31,235
Segment operating income (loss)	1,940	1,856	6,897	7,053
Operating segments | Transportation Systems
Business Segments
Revenues	11,913	8,283	36,638	24,536
Segment operating income (loss)	1,920	1,027	6,813	3,074
Operating segments | Agriculture And Weather Analytics
Business Segments
Revenues	1,381	960	3,143	2,181
Segment operating income (loss)	$ (1,892)	$ (1,546)	$ (5,582)	$ (4,904)

Business Segment Information 37

Business Segment Information - Reconciliation of total segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Business Segments
Total income from reportable segments	$ (1,474)	$ (1,134)	$ (1,749)	$ (2,148)
Amortization of intangible assets	(80)	(92)	(248)	(276)
Other (expense) income, net	(1)	(3)	(7)	1
Interest income, net	4	3	9	10
Loss from continuing operations before income taxes	(1,471)	(1,134)	(1,747)	(2,137)
Operating segments
Business Segments
Total income from reportable segments	1,968	1,337	8,128	5,223
Unallocated amounts
Business Segments
Corporate and other expenses	(3,362)	(2,379)	(9,629)	(7,095)
Amortization of intangible assets	(80)	(92)	(248)	(276)
Other (expense) income, net	(1)	(3)	(7)	1
Interest income, net	4	3	9	10
Loss from continuing operations before income taxes	$ (1,471)	$ (1,134)	$ (1,747)	$ (2,137)