Itron (ITRI) 10-Q 2009 Q3 Quarterly report

Exhibit 12.1

STATEMENT RE COMPUTATION OF RATIOS

	Six Months Ended			Year Ended December 31,
	June 30, 2009			2008		2007			2006		2005		2004
	(in thousands, except ratios)
Earnings:
Pre-tax income (loss)(5)	$	(26,811	)	$	18,582	$	(43,550	)	$	47,594	$	27,528	$	(9,406	)
Less: income from equity investees		90			93		358			33		82		-
		(26,901	)		18,489		(43,908	)		47,561		27,446		(9,406	)
Fixed charges (1):
Interest expense, gross (2) (5)		33,244			94,177		100,935			22,426		18,944		13,145
Interest portion of rent expense		2,631			5,163		4,098			2,241		2,512		2,696
a) Fixed charges		35,875			99,340		105,033			24,667		21,456		15,841
b) Earnings for ratio (3)	$	8,974		$	117,829	$	61,125		$	72,228	$	48,902	$	6,435
Ratios:
Earnings to fixed charges (b/a)		-	(4)		1.2		-	(4)		2.9		2.3		-	(4)
Deficit of earnings to fixed charges	$	(26,901	)	$	-	$	(43,908	)	$	-	$	-	$	(9,406	)

(1)   Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor.

(2)   Interest expense, gross, includes amortization of prepaid debt fees and discount.

(3)   Earnings for ratio consist of income from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges.

(4)   Due to Itron's losses in the six months ended June 30, 2009, and the years ended December 31, 2007 and 2004, the ratio coverage was less than 1:1. Additional earnings of $26,901, $43,908, and $9,406 would have been needed to achieve a coverage of 1:1 in each of those respective periods.

(5)   On January 1, 2009, we adopted FSP 14-1 and applied it retrospectively to all periods for which our convertible debt was outstanding. Our convertible notes were issued in August 2006. Therefore, pre-tax income (loss) and interest expense, gross reflect this restatement beginning in the year ended December 31, 2006. Refer to Note 1 of the condensed consolidated financial statements for further disclosure of the adoption of FSP 14-1.