Itron (ITRI) 10-Q 2006 Q3 Quarterly report

Exhibit 12.1

STATEMENT RE COMPUTATION OF RATIOS

	Nine Months Ended September 30, 2006		Year Ended December 31,
			2005		2004			2003		2002		2001
			(in thousands, except ratios)
Earnings:
Pre-tax income (loss)	$	43,478	$	27,528	$	(9,406	)	$	17,899	$	18,859	$	21,366
Less: equity in affiliates		33		82		-			79		126		(616)
		43,445		27,446		(9,406	)		17,820		18,733		21,982
Fixed charges(1):
Interest expense, gross (2)		12,359		18,944		13,145			2,638		2,061		5,112
Interest portion of rent expense		1,716		2,512		2,696			2,661		1,902		1,062
a) Fixed charges		14,075		21,456		15,841			5,299		3,963		6,174
b) Earnings for ratio(3)	$	57,520	$	48,902	$	6,435		$	23,119	$	22,696	$	28,156
Ratios:
Earnings to fixed charges(b/a)		4.1		2.3		-    (4)			4.4		5.7		4.6
Deficit of earnings to fixed charges		-		-	$	(9,406	)		-		-		-

⁽¹⁾ Fixed charges consist of interest on indebtedness and amortization of prepaid debt fees 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 consist of income from continuing operations before income taxes plus fixed charges.

⁽⁴⁾ Due to Itron’s loss in 2004, the ratio coverage was less than 1:1. Additional earnings of $9,406 would have been needed to achieve a coverage of 1:1.