ITI - Earnings call transcript Q1 2020

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Operator

Good day and welcome to the Iteris Fiscal First Quarter 2020 Financial Results Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Todd Kehrli of MKR, Investor Relations. Please go ahead, sir.

Todd Kehrli

Thank you, operator. XXXX. thank Iteris' participating fiscal financial XXXX, June and call today's first everyone ended discuss to results XXth, afternoon you in for conference quarter Good for its

CEO, Joining Mr. CFO, us Andy Schmidt. Iteris' today President Mr. Joe and the are Bergera; company's and

remarks, their the we'll for open your Following questions. call

remind change company we'd the statements during regarding to an events subject participants are are updates information or the current on which may course Iteris Before the we all we undertaking based forward-looking continue, of of performance guarantees not make to in performance. the obligation and of future statements are future statements not like to that provide this future. call, these future is forward-looking to

discussed Forms that company's with from refers time factors should cause to today and time differ identify actual any Actual the may valid. important that contained still forward-looking documents results results no contain that materially at company's files that in recent the and statements. comments later company risk could is assume date, are today the to will to the specifically the X-K, which Iteris those be from differ substantially you and from most what a XX-K, SEC, one XX-Q, from

the I'd our today's of call like a first website find well to of iteris.com. a remind Relations at webcast replay on of everyone supplementary quarter section as report company's that you'll Investor as financial metrics the

Bergera. to go President Now, ahead. to I'd and CEO, call like Please Mr. Joe the Iteris' turn over

Joe Bergera

afternoon today. everyone. Great. Thanks Thank for good you, us Todd and joining

results June XXXX. press the issued at first quarter close ended we saw XX, a As fiscal release financial announcing the our market, of you of

recorded revenue, to a Iteris million increase year prior which QX, relative represents quarter. total $XX.X In the same X% in

bookings increase. million, XX% net $XX Additionally, an increase year-over-year a total of representing sequential and XX% first quarter we secured

year-over-year a million, strong growth, backlog our increase Due our sustained $XX.X represents quarter to first sequential X% to which increase. and rose XX% ending bookings an net total

Transportation me period. recognized decline performance million Now, revenue, brief our in Systems segment overview year In QX, same X% let of $XX.X prior a a provide versus the by segment. representing

discussed some the last due largest remaining ending XXXX. first in is be a comparison the the fiscal segment's noise quarter to our calls, of starting will quarter year. us change XX, customer second on As noise structure fully This prior there in September in contract behind

bookings total $XX.X Despite the recognized decline the of increasing increase to million, strong reached period. segment in record quarter the $XX.X a ending represents to net backlog demand, which a to segment's continued the Similarly, revenue, prior experience total XX% first with X% million. year same compared

Some segment's over notable of $X various provide task include and video, million orders data recent bookings of to Department Transportation. the services in Virginia to traffic,

the measurement in our engineering services, emergency $X new operations, task traffic additional million of and system; Bay over Area task our discussed to our addition $X in Partners operation project for we've reference support and contracts improvement which software-as-a-service and $X our IDIQ of million XXX with services Traveler OC Advanced orders the use various agencies prior activity management the VDOT's bookings Commission software centers, task of products. note in information orders calls. Transportation of country, transportation to the and is the million from from various a on use agencies continue Please Highway contract in architecture of across connected Administration over from $X.X Metropolitan Department an enhance smart nation's for an County; performance Texas for Other million I-XXX in Federal vehicle automated deployments; orders vehicle in $X.X commercial including for and expanded from the additional Transportation for notable this traffic include Orange million to

the contract QX, Southern segment as recorded prior SmartBuy Midwest, increase. the business $XX.X of the strong well quarter, result Roadway as in XX% the California. In Southwest million Texas reflects especially the performance Texas reinstatement revenue $XX.X year-over-year of Sensors representing in This versus an same million year renormalization in the in the following and

Additionally, in during VantageLive! our XX%. we largest we At QX and for order received for saw rate VantageLive!, a our this increase general is time, single intersections. date to annualized demand XX renewal

due lead-time to stated steel As seen we've cabinets and deployed products. the prior alongside our as trade these may are increase smart in These because sales such longer impact environment. for often lead-times steel the on an calls, current our sensors products, pulls

situations lead-times range, XX-month forecast. the new stabilized within current factored normal our into by believe a vary region, we is which is the to generally have Although somewhat six and

discussed QX, for ClearPath due to million third-party a true-up same a Agriculture to period segment Weather. and elimination X% Analytics recognized In compared year period the which noise $X.X royalty result revenue, with represents increase of prior This in a our Weather the reflects previously quarter. the some associated prior in

Excluding to this continue experience and growth. revenue product bookings both solid factor, lines

bookings In and basis. XXX% segment's a fact, the sequential on basis on a year-over-year increased XXX%

to During with while new our continued customers customers. we add ClearAg existing first quarter, relationships deepening our

ClearAg customer include largest internal research of activities. its environmental development intelligence one notable the into wins ClearAg seat customer-facing applications well world's integrate as to as and to recent producers Some committed utilize support

supported efforts. facing on its crop agronomous Ag, agricultural well platform biologics, research company treatment, ClearAg an as selected as focused and to seed Indigo enhance modeling technology development

an location-specific decision-support to And platform. to ClearAg's Australian solution environmental enhance like FluroSat, providers, its health intelligence crop

over With through call that, to turn walk the financial I'd Andy to our results. like to

Andy Schmidt

you, and afternoon Thank Joe everyone. good

Okay.

focus revenue business and modeling perspective of from our a summary sheet highlights. on three financial key drivers, up our and update balance finish with Following Joe's segments introduction our an to I'll on providing highlights of

today financial issued our year-to-date our segment and a and which information. include As information reconciliation press includes reminder, quarter forma pro release current tables, and financial

financial view metrics We also is Investor a document, metrics. key Financial financial provides our on under of our under published Relations posted which which website a key link Reports, trend

important XXXX, QX mind. our of dynamics two at keep Looking there are in fiscal to

our our confidentially in offering completed current First, reporting period. public marketed we

until AGI incurred is also expense was acquisition to of It QX our Albeck related that QX. be Gerken the not our acquisition in Xnd, significant which July the noted of completed XXXX. should We

So, results. current acquisition see while period our our only certain to will the our see capital in of results, you effect full raise the related you'll expenses in

we Specifically, approximately third-party our $XXX,XXX of one-time XXXX recognized expense fiscal in results. QX GAAP

provide refer We press detail. in to this for operating Please provided our to the category release period year-over-year reconciliation reconciliation have added non-GAAP our this more of results. clearer non-GAAP our view to a

Okay.

trends and contract past wins. prior of I'll outlined and difficult TOC Joe original contract. our QX as quarters, our segments year-over-year significant Consistent consider order, business Let's comp model part the with three our and Transportation our new Staying period with still start includes Systems. favorable with bookings VDOT backlog Joe's business consistent year updates. is continued

period margin mix. gross attributed XX.X% this Sub-content be component period. favorably less to was can approximately period Current ago than with compares last of margins year it at product XX.X%. XX% gross year's favorable was The the

operating In resulted contribution $X.X of of is all, QX prior contribution expense terms in combined in our product lower an year down of million operating $X.X margin, with mix, in from costs increase In the margin. favorable million.

year-over-year, key Of down of favorably increased contribution to dollars of million for X% our $X.X $XXX,XXX year QX while contribution the to compares XXXX. XX.X% revenue significance, our margin period. for XX.X% prior margin was QX

Texas the Texas noted, comeback year-over-year third-party growth of aspect A the segment as led segment, Sensors saw our to business. is our product significant by the of we in strong unique distribution market region. Joe Switching the

point naturally mix. unique a While Texas of we have is the margins as seen the includes business Iteris the product This in sales important a region the Texas, step-up due the than of region the of geographies strong product. sales renormalization slightly to return lower third-party gross product other for an overall in to is in

margins third-party to XX% typical of the year for of product in of versus revenue QX represented resulted XX%. distribution XXXX Texas The approximately XX.X% Specifically, compared as prior sensors mix overall XX.X% rate period. overall run a gross

of year. operating $X.X to QX it million. margin together, million of previous from XX.X% for QX year's all is our very expense Putting compares XX.X% contribution favorably $X.X down last

we very had bookings a as Switching to segment and positive and revenue previously this Ag for dynamic Weather, Joe this period. outlined,

revenue margins revenue P&L fiscal year However, of is for $X.XX in Weather the QX XX.X% the of the by pickup obscured approximately to quarter and year-over-year previous Gross and for period. given is a the million in one-time Ag of expectations our performance for XX.X% within XXXX. $XXX,XXX somewhat compares

expected While the of the QX year-over-year slight decline, the gross a XXXX, fiscal cost than margin of comparison gross associated attributed adjustment led represents for fiscal quarter. margins higher one-time to to no sales. This had XXXX revenue

compares $X.XX Operating segment's Current contribution for favorably expenses last $X period. improve. million quarter of compares $X.XX loss previous million. for of approximately loss to million to year's OpEx QX The year million continue of the to $X.XX favorably

quarters continuous post this to performance continue improved we all, in In of segment. financial

finance, given our public and corporate includes growth stabilized accounting, of which expense, so expense, terms IT, facilities marketing, unallocated In expense, essentially on, HR, we've company initiatives. many

Corporate expense of $X.X million. million expense. XXXX basis, on acquisition which nonrecurring $XXX,XXX nonrecurring for acquisition was includes of $X.X out GAAP corporate QX Netting a expense expense, was

to accounting fiscal corporate with accrual had of closer recurring our adjustments be expect $XXX,XXX We to but million, $X associated year approximately end.

sheet. Finally, let balance me our address

capital count, Our regard stock QX to outstanding. of XX.X million we due unique to the was In year the raise. shares share with period very started a common fiscal

the issued share Our include at with XXXX. count Xnd, million June XX.X The conjunction about us Gerken. with added X.X shares purchase of not Albeck at leaving million shares, raise XXth, in July shares does

In the improvements expense. made fiscal cash, particular, for short-term have in capital used our during $XXX,XXX a position. out began Taking terms working year period, we we That's including with the great cash our cash capital only $X capital million and company. change raise the pace investments. in we great in equation, this of In approximately of about

from to our $X.X $X.X we million in at have with as to scale beginning Inventories Sensors associated year dropped return the the segment that of million business.

about beginning the saw acceleration sensors the business. we the of of $XXX,XXX accounts reduction receivable addition, despite from year the a In in of

million, Ending capital XXth, of operating, comprised cash plus short-term $X.X the at from investments generated June million for XXXX, million approximately $XX.X raise. $XX.X was and

the final non-GAAP year. view a for fiscal have a We improvement of operating this clear $XXX,XXX loss this certainly As period comment, operating last positive saw a income XX% GAAP, of we a period, non-GAAP over same year.

I'll this turn call back Joe. At point, the to

Joe Bergera

continue models during in secular meaningful, further we innovations transportation markets. to and of our will favorable Great. to in highly Andy. and year competitive to position you, enhance capitalize introduce XXXX, strong service our on addressable and remains SaaS a expand trends product develop both differentiation And market high-margin Iteris Thank in we digital agriculture. fiscal our as smart end

our I'll fiscal commentary year provide expectations the XXXX. associated segment and for on approach some by balance our of

for and our highs, the new remain to While fluctuate our growth reach Transportation Systems within given conversion may bookings quarter, opportunity any segment rates continues pipeline favorable.

opportunity of conversion bookings continues from strong the Therefore, XXXX, three with through the areas. coming rate to segment year anticipate fiscal highest

of adoption customer as information products, First, such Advanced and Traveler our emergency and system. ClearGuide our software

customer Second, a managed outsourcing intersection adoption service, of such service. business a services software-enabled managed offerings, is process and our as which as

to three strategic team three, Texas, penetration of build our Albeck ongoing where geographies. Gerken And The will fiscal co-market which the intersection we and Florida, third we Sensors Systems additional Midwest local state; continues the in dominant recent in the and absorbed is Transportation XXXX, accelerate in segment, the Roadway intend our our initiatives. upon quarter co-sell of where where vendor to segment organic the with detection acquisition

Albeck results the quarter bookings financial growth year-over-year historic prior convert the In of acquisition. of levels and the Systems period Transportation realize to in XX, September should revenue, as our consolidate recent second mid-teens ending the Gerken we segment

with More contribute season. to is including the quarter expect a million Florida second to market, in project seasonally Gerken Albeck which specifically, unique for the the quarter, we slow due revenue factors approximately associated to Gerken $X.X hurricane disruptions in Albeck

the expect will benefit further complete of post-acquisition acquisition integration quarter, in in the offset to activity the level same operating from substantial We which a segment our amount the income period.

the of second the income continued operating the And support contribute level prior bookings high $X margins. Albeck XXXX, in the level the inorganic growth to and conversion with revenue will inorganic Gerken fiscal expect revenue Systems million segment In Transportation teens, to combination revenue we half this segment in in period improvement from segment. revenue the over of

Now, segment. let's Sensors discuss the Roadway

With year market, we the the intersection expect renormalization than growth the continue XX%. full to of Roadway of more Sensors to report Texas revenue detection segment

the second, the growth competitive also enhance platform; several primary revenue enhance SaaS further certain differentiation; product segment's three, programs productivity SaaS-based sales and implementation in that include, VantageLive!, our intersect increase to of The our attributable drivers product direct innovations revenue of analytics and indirect and an our channels. first, to

year-over-year, second of Given typical to market exceed the the seasonality as while is fiscal growth expected be such XX% year-over-year. segment's should years, other single-digits the half in second and quarter growth constraints, timing revenue agency revenue

operating operating continue last full due Additionally, year's segment's to mix the to increase to and margin relative year expect product annual to sales income margin we income efficiencies.

our Weather operating ClearAg Agriculture agronomic efficiencies. platform finally, discuss and also creating business. Analytics continues And and solution our environmental an improve let's to while of The intelligence repositioning customer as adoption

As to market continue we year strengthen progress through ClearAg's we'll market increase fiscal our position XXXX, and share. overall new

in on by OEM and allied new irrigation Our existing North strategic acquisition and commercial agriculture activities focus equipment adoption of penetration providers America and Europe. will customers in accounts,

As our we about improvement full ClearAg $X year prior in the revenue for compared year, net to expect to is our which growth our a performance. further accelerates, investment million decline to significant

from segments; expect dollars the our effect consolidated for Albeck the growth In Roadway of growth in yield rate effect Systems summary, of reach revenue mid-teens, incremental in Sensors further and the and revenue of operating to year we investment fiscal anticipate decrease margin we combined the to and our full Gerken XXXX accretive the a our profit the a ClearAg; year. net Transportation non-GAAP acquisition in year

we'd With to respond delighted comments. and be Operator? your to questions that,

Operator

you. [Operator Thank Instructions]

Steven from question of Capital first Craig-Hallum Dyer our take We'll Group.

Ryan Sigdahl

Dyer. Sigdahl guys. for Ryan in Hey Steve

Joe Bergera

Ryan. Hey

Ryan Sigdahl

cadence, business operating And First this quarters on you see Or and inflection seems I from something happen quarter loss And we about this every new all new the how any a about burn lower new like cadence in next that cash really year guess, years? do customers. the significantly steady it that ClearAg off, with so year. can awards? over several talked or to year? business? and that when existing next hockey revenue just But of several that think stick later this the Is expansions

Joe Bergera

couple things. a so of Yes,

First internal hits. plan continued providing our of the guidance general reflects the we're base all, and directional that

single quarter. in every we So, keep with coming

expect that year. talked So, we that leads have about consistent we acceleration some fact previously growth to this the

to of over prior For the full generally in growth but be the which rate year, the we in year, expect improvement range revenue bookings was of XX%, low reflects prior growth the the year. definitely

existing large to one enterprise to that today? we're agreement, Do most way of continue we've inflection calls. the an The of base respect something And from agribusiness the With significant asking conversion think hits. into hockey an the strategic the on that question. likely again, to is -- talked deliver -- relationship would a looking multinational stick, come to with remains of have I previous we about deal which Situation you're line sight probably that's same. enterprise

enterprise-wide discussions of with potential our about of of We be one the remain revenue all converts, in largest in growth, agribusinesses speaking. dramatic of acceleration deals rate When the would generally a those ClearAg. deployment there

more SaaS because just the booking Now in that, recognition revenue would bookings that that's it's that said, a because being general the could slightly than growth a of practice. the rate model, result recognized step-up in of modest be way

hits. customers, again, bring So, to new to is base deliver now, right plan continue in our

those that. but don't will to deal, ultimately customers We I line immediate of have enterprise sight convert into an

Ryan Sigdahl

Joe. helpful, very Great,

to recurring I it I prepared but then remarks, it As the think heard revenue revenue, And in it what quarter, SaaS SaaS the compare was to prior last that how don't gave does the in quarter? you period the quarter? relates

Joe Bergera

I'm sorry.

for on an Analytics You're talking or Ag enterprise about and Weather basis?

Ryan Sigdahl

primarily it can guess you to basis? looking do that break as but you if I Enterprise out well, between segments, want overall?

Joe Bergera

Yes.

iPeMS Systems are noise segment, is little largest our ClearGuide, some platform. of So our in customers, our there's revenue, bit where to a of our existing software new there amount the which customers of because transitioning have Transportation we specifically SaaS we

our of be SaaS of a somewhat generally software versus But would that excess should -- should SaaS. revenue in considered hosted $XX whether traditional enterprise enterprise now, a a differentiate of total model to million. some be of and in would speaking, excess revenue to in our strictly It's difficult right more as be revenue $XX total million

Ryan Sigdahl

to the if your -- get forma take acquisition, it targeting can think cash. $X What about then million thoughts Great. guess you pro we organic self-fund initiatives? And cash, at so point? the that? relates about you you yourself you of there use segments then that are that as out for expecting the I for there? million to are or $XX is it technologies? are Or it? need And more Or as you're should think how this M&A, Do certain I you

Joe Bergera

do Andy, Yes. you want talk that? to to

Andy Schmidt

we it are primarily Yes, for we Sure. not clear when very It's raise, that for organic did purposes. the inorganic. was

our period, non-GAAP of about our look $XXX,XXX If at loss of current our again, that's results the basically CapEx. you amount

reduction cash tend you when same in they number. so to to And the million, at be $X $X.X from million the look

But an minor this didn't we're we But use what's not great our -- It's usage just really now, perspective, right is basically, our cash for intensive. just is period. capital CapEx. from about cash that operations very

forward, When loss. year we non-GAAP the started start going out we looking at $XXX,XXX

Now, at Albeck accelerate. that quarter every non-GAAP Gerken layering in, performance we expect, to again,

we So, positive year get and our operations. into, perspective positive cash quarter, end very fourth we'll third that a flow, flow as cash at the and certainly, from

Joe Bergera

is to a to proceeds operating the reserve And needs. intent just the CMPL from the follow-on future is just Andy that use again, as acquisitions. to then current into which for translates potential really need really there And cash said, no for to reiterate, net strategic that, Ryan, use,

Ryan Sigdahl

hop Great. back I'll in queue. Thanks guys. the

Joe Bergera

Thank you. Great.

Operator

Jeff Thank Van you. Sinderen next We'll Co. take our Riley of & from question B.

Jeff Van Sinderen

in gave place with what And more SmartBuy Texas guys afternoon. is metrics seeing business? region outlook your just your on comments. that Good for prepared in for speak if can the you wondering in about Texas new and what But the some I know you you're program

Joe Bergera

Thanks do Jeff. to Happy sure. Yes, that.

business sales to that clear I market, quarter. got We want above unit not in largely clear, released a in which So, slightly arguably, a pent-up in in be to one-time growth There were some business we the Texas. dramatic but XX% first plan demand, Texas. for the that return reflect does to from was, the normal be saw increase

market the given a did occur going the As along, only absorb number in year we able all ultimately for prior so we've will is sales flow think much And time. to at to in not of Texas take said point any to of the that our fiscal be products it quarters through.

to improvement had with sales again, Texas. in clear, nationwide we just, some be plan very of above results strong So,

would market, is this At case in remarks, I point, growth Texas the we for last the has exception we growth with been as to fact in market the we did Texas consistent we SmartBuy FY my the every years expect have as to the said to prepared and expect saw the renormalized that negative the several of due access when XXXX, contract. single actually that quarter continue not

Jeff Van Sinderen

that the That's of could maybe been good. give a where component coming maybe And just perspective, of ago, how evolving for the SaaS us for few projects see you how new years the over And on touch are kind the is just few kind a years. more sense older Okay, broader seeing nature becoming you're helpful. a you penetration on of time? from important? there versus And the you projects then Joe, you've headed your of SaaS

Joe Bergera

sure. to. be Yes, happy I'd

I between and bookings the So, in differences the a where years ago is, we where were today one think, growth. biggest few of are reflected we

continued we So for increases in bookings net the transportation and have systems significant, business of first unit. all,

really be to there fluctuations quarter-to-quarter. want overall, the big, caution positive, will long-term get has positive. continue that But numbers from some to be these been trend could do I

start to big that, that orders. you peel away and interesting you you driving is look lot of at As a what's see what's

most period, bookings orders our of million. most some through booked recent $XX.X went I we net notable where were So, the in the

million different that years million-dollar-plus I all reflect discussed four they million. bookings the Those where mean when about orders. was I the $XX,XXX. $XX if our $XX.X radically order of ago from were there, That's you average about we are add up

them end of and that's still the biggest of does small really projects, portfolio That challenges projects, -- changes. So, having that one we of our set big as we with present have are some of relatively we lots small. up

size a Over of is But There's very very fairly lot or business, it's change and to we're of in benefits the in a closing. costs going us. this the balance the deals that large sales That to small deal high has deal. time, whether a out. marketing that's again, it's biggest

go tend Obviously, after therefore, multiyear The I'd term, deals duration. to larger deals. larger be oftentimes, the rather in longer

utilization to almost across So, small, staff projects. us very you're to very reallocate as when opposed that allows better to get continuously short-term trying

it's definitely the the characteristics improving So, business. financial of

in of four And big recurring then made ago, the respect a with for shift to those the in was traditional up from years more are, to you transportation fact, the business businesses nature of seeing bulk larger which systems, consulting, nature. projects,

is, unit or And of of is there and types software-related services today. Transportation there are managed in the two well. managed then Systems more an an amount increasing specifically revenue There's services that's of amount revenue the different business increasing recurring as and increasing SaaS number second

financial anticipate rate recurring revenue, respect And as the there's change that Sensors revenue, we faster at With which characteristics. business, the in overall the look change business again, would grow forward, services and a less the that much Roadway we financial to unit. managed both of will than software the coming from characteristics will consulting

faster a in recurring gradually even deployment revenue unit VantageLive! well more the of revenue total the Sensors start implementations, quickly. as X% profile To-date, the And than Roadway more and which business to allows revenue. we adoption of importantly, revenue see the us business see units recognizing a the still include we're of to of revenue, but to rate VantageLive! be will less starting for continues more shift to

Jeff Van Sinderen

to Okay, last throw hear. I one, good. just if one Great in. And it could quickly then

integration back report terms anything of Just in with the process Ag. to

Just worth wondering there's there if anything it's pointing out? that

Joe Bergera

spending on. a of we're actually, It's great No, lot a Yes. question. it's where time

very, plan. this is point, extremely that. comprehensive proceeding have Albeck a on team plan. closely at We're working Gerken on exactly with everything integration very We And

going was to to remind integration question asked basis. previously, I folks, is as occur on that staggered Just a

operating Albeck is Iteris in point, Company. this Gerken Florida Albeck the as Gerken At market

the integrated financial and is will systems year. other at Albeck back-office HR the of from activities legacy commercial fully gradually into align the to course Iteris fiscal be the starting will ours to be year. operating and our of that And policies, next current systems various fiscal are start over the expectation Gerken like transitioned employment We business

Jeff Van Sinderen

questions. of this quarter. Okay. Thanks my best And for luck all taking

Joe Bergera

Great. Thanks Jeff.

Operator

[Operator Instructions] Thank you.

our take next from of We'll Osha question Securities. Joseph JMP

Hilary Cauley

Hilary I Joe one you about Osha. upside you guys. like? question was the little if of for to bit what grow to talk of for kind just on acquisition, Hi, intersection that use look looks had offering to as I you your and that wondering the could kind is this particularly a as a service scaling

Joe Bergera

at Andy, Sure. to you crack do want a take that?

Andy Schmidt

Sure.

we've we other we when of, that feel terms strong. So, markets very started look acquisition, look and to business outsourcing unique that -- where into first as the talked very to has we the of in let's Gerken model part business a emulate process introducing our Albeck we're say, bring we

start So, fiscal of that end and adder the we the expect of that to fiscal be as next our a year. go net year into we

different and the intersection accelerate of service, market a very of be of very going to initiatives. word, Florida In again, that transportation footprint relationships, is terms a as going help the it's in better within lack again, important. it's initiative. a It's us that market terms that robust geographies for Again, intelligent to be,

actually forward. So, ground we for feel it's that a push to us fertile

accelerating, let's actually very available this experiencing is particular it. given bit already SaaS think and launch Florida its that. market to renewal said, product As some but sticky -- existing a very us, a Joe forward acquisition, come we're nature rates to And that we the given say, we going is with a we're our now from in of look to see things the strong good nature

Joe Bergera

Yes.

of our the length degree timing of from to the -- as to acquisition it's will at add -- would the see for I service adoption of sort difficult provide So, Albeck this that of relative not just of to to fiscal the Gerken intersection I a expect But inflection because figure the a result as to acceleration a in to a typical process that, point. procurement this rate quantitative in market; already as year. perspective, share planned significant

I think benefit. it start year to where next would realize be that would fiscal

the point, to, quantitative as difficult we But market at was to you geographic And provide rate hopefully, thinking. probably market sense realize what would it's that as Andy specificity, is that acceleration. more we're but alluding kind to primary the Florida where a of this of that we sort think general gives of

Hilary Cauley

Excellent. Thank you.

Operator

our take next We'll Latimore Markets. Mike of question Capital from you. Thank Northland

Unidentified Analyst

is on This see market in pipeline you I the TS beyond Paul Texas questions. guys. Mike. Hi two for have opportunity segment. do How the

Joe Bergera

the I'm Texas which segment? in sorry, beyond market

Unidentified Analyst

basically. The segment, Transportation

Joe Bergera

Okay.

So, mean Roadway Systems about talk going to to you transportation I'm I'm systems, but Transportation going assume and both Sensors.

to So with respect start Roadway sensors, let's there.

As we've Texas of far, talked of XX% market. by out revenue about our segment's largest previously, the market, Texas, comes the

results is of this were for seeing SmartBuy everywhere Texas. for because decline frustrating segment in pulled the XXXX, contracts, FY in down the all except us but that was circumstance actually Texas, year-over-year in to saw growth In result revenue overall for unique that a we our by which we access very saw that as unit, business a of we masked which having not

the economic overall market very market. support Texas Texas and robust in market of the is a growth we Roadway continue growth in that sustained the expect think our definitely in as region, for to forward, be to Sensors the -- would going we to because which Now, population look we business

specifically and prepared to highly this expected nationwide, competitive innovations, are that in always is and will remarks, to it introduce top have innovations bring a of we product only additional to new not Texas. in year, to talked my And I market stay later which reinforce which have our but position, product our continue we being end, leadership market, game. on That we said, to

Systems Now, with segment. respect to the Transportation

business Transportation significant Systems of different for consulting also believe remind we it's far, for market largest our actually traditional across Roadway see represents to all to to growth managed services by those and And our Systems the services, business. folks, and our Transportation are, segment. one products Just lines provide opportunity of software it while smaller markets a growth do expect for Texas Sensors, we

lot it's continue would in been of geographic the lot far fact, reasons. fact Texas to expect easy a arguably worth that is of of And cloud. And the market Texas of to that the already intersection adoption. intersections network detection to so in equipment as a market. because being we've has usually largest One, the intersection either service model service a noting we that for at to our corridors installed as modern private or and connected technically deploy It

technology engineering. we is leading And to with to respect the of Texas find sort then traffic oftentimes of curve tend additionally, edge generally really more specifically and

the Texas represents opportunity for intersection specifically, growth a and market System all So, service. area our growth lines major as a a Transportation for business again, significant of across

Operator

you. Thank Instructions] [Operator

there questions would this for in to I closing no remarks. queue. over back turn management At the are time, the further floor to like

Joe Bergera

Super. Great.

So, And thoughtful everyone's thank questions. and support we you, appreciate operator.

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With that, Thanks we'll conclude everybody. call. today's

Operator

today's Thank concludes you. teleconference. Ladies and this gentlemen,

You may now disconnect.

Iteris (ITI) 11 Aug 192020 Q1 Earnings call transcript