ITI - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Iteris Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jim Byers, MKR Investor Relations. Please go ahead, sir.

Jim Byers

Thank you, operator. ended thank Iteris' participating XXXX financial quarter full and call today's fiscal everyone and discuss XXXX. to results year afternoon you in for conference fourth Good XX, March for its

us the CFO, and are Joe Groves. company’s President CEO, Mr. and Joining Mr. today Bergera; Doug Iteris'

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

the today's and of www.iteris.com. of year replay at full financial contained the to Iteris the results remind factors well discussed I'd of company regarding course from QX a call, we company's Iteris that the a on of and to of may assume identify should SEC, that at which Before risk the we you and remind such performance. statements. updates Actual webcast the still no to to a performance this company like and cause an forms forward-looking the or could with all that in everyone the any participants site future time forward-looking files not materially from specifically based time contain company's valid. later is of will future the find is Investor obligation most today XX-Q the like future. information, statements future to and metrics forward-looking are report continue, substantially provide we'd comments that to important XX-K, today not you that undertaking events the to during change Web be on differ X-K, supplementary recent from differ the subject are statements that results actual one make in guarantees company's and will documents statements of current may date, are those call as to section as these refers are what from

like Joe to call said, turn CEO, Mr. over that Bergera. President Iteris' Now and the with I'd to

Joe Bergera

appreciate you joining afternoon, everyone. you, and Jim, I us Thank Great. good today.

for at fourth release As and we XXXX. year the a full saw our fiscal close the of XX, market, issued results quarter March press you financial the announcing ended

results Our operations, which remote because even and of fourth moved inflection also from of fast fourth company. COVID-XX, quarter software disruption fiscal our certain feasible our This Recognizing significant to quarter agility delivery our minimized some financial potential model. of enabled only the point reflect was accelerate activities. early unique for we a demonstrate us XXXX disruption of to the and and commercial operations to enabled Iteris any

commercial strong performance a company's reflect backlog total increase net total performance more in million, across represents is total reporting on of XX% Iteris financial a record quarter year-over-year The take will segment, operational $XX.X year-over-year XXX.X and We full March million, total revenue respectively. summarize of bookings detail. XX% XX% record all to fourth segments. represents strong I'll $XX.X million, an year-over-year a and revenue, net of and reporting XX%. resulted fourth growth bookings which ending As backlog record quarter total results our XX% a discuss increase bookings million record year total representing result and total of the minutes $XX.X record revenue secured few million fourth XX each increase a year of net total The full of bookings of $XXX.X ending year-over-year. increase which in Doug quarter representing after and which results

bookings revenue in The which year year increase of record of strong representing XX% managed reflects fourth systems transportation and a increase full basis, revenue market year from XX% performance demand XX% The XX.X penetration fourth net and on lines was of On the to be same Our recognized year-over-year recognized increase. representing system geographies. particularly representing transportation Albeck of revenue. growth prior all same segments recurring revenue year-over-year segment XX.X managed also year recorded segment the bookings and a million, well XX of Florida representing as net Incorporated, from an increase benefit in The segment quarter million, net for performance quarter million, year and the an software period. increase of business, of services, growth net consulting, XX.X strategic X, Almost in bookings resulted full full XX Gerken $XX.X quarter an an lines recognized well annual prior March XXXX. a bookings continued of ending as full XX% record as and solid as from will backlog bookings the reflects million, segment's Texas period quarter segment's the the fourth July as business, fourth services acquired and software net XX% million. year on in

provide released compliance; the XXX,XXX under in and two contract to Department funded being reporting for commercial in task and recent $XXX,XXX with Some million managed lead Texas occupancy funded in agencies, public task Angeles with across with vehicle in a four mobility private addition connected Express $X.X different funded customers application software-as-a-service traffic toll sorry one -- fourth operations to Transportation; of bookings including $X million evaluate $X.X services Cisco combined ClearGuide, which entities County related combined is contracts orders for order Lanes lead international by the of Sepulveda I-XXX public private to notable contracts quarter orders to two XXX,XXX Systems. the task combined several software in I'm combined and task million XXX,XXX our include corridor; -- for Los high partnership intelligence of two partnerships operations pilots, vehicle to orders

territories, year-over-year our let's Roadway a year geographic four $XX.X revenue year-over-year reflect and quarter XX% strong Southern $XX.X performance results increase. fourth discuss record and Segment California, Pacific reported Texas, million million, Now Roadway increase the Segment. of Sensor Southwest Northwest. XX% of the Sensor representing a particularly in These revenue full representing

to major three positive experienced releases. product following we the customer Additionally, response

Standard of introduction the now data ingest enables First, VantageLive. third-party API to that applications a vehicle count from VantageLive

increase. new streams from Iteris The is quarter that any our generation products. of branded as a video The XX% net second ending and segment's full represents mobile resulted XX of of on increase quarter which million, Second of full and a secured VantageLive. increase XXX,XXX revenue weather year a representing Iteris $X which year radar million, year-over-year detection of to backlog to $X.X fourth $X.X applications revenue growth the data and real-time and of year-over-year full million. Viewer product segment representing detection fourth And equipped net $X.X segment in intersection bookings XX% million, a bookings agriculture year-over-year third, web and of the also bookings Video The net respectively. March XXX% reported and analytics and introduction year of XX%

to X, and As a Analytics on our of Segment the DTN reminder, LLC May Agriculture Weather we XXXX. completed sale

I'd to Now call the like turn Doug. to over

Doug Groves

Thank good afternoon, you, Joe, and everyone.

As growth, of the a improve in we've key QX with including reminder, trends margin increasing and discussion our further top-line call. backlog favorable document continue with the please filing, see description third in site business the certain financial on and expansion. today during release XX-K of year-over-year results, Web the our Consistent to metrics for performance press supplemental posted the company's metrics seen matters under quarter

details the will the I results. fourth of to quarter Now, move

million, to a XXXX fiscal million same the ago for total for As fourth compared the the to revenue a increased quarter mentioned, XX.X XX% and in new year company. Joe was record XX.X quarter

in $XX.X The our portfolio. third over weather down analytics employees, $XX.X the sequentially to Our million primarily the improvement the and million, for same agriculture quarter scale expenses quarter prior prior increasing to and bonuses XX.X% to and retention gross segment demand quarter margins in and was AGI as increase was increased non-recurring service quarter and more acquisition, volume nature. with compared the due quarter were in Operating related AGI improved from year fourth fourth to margins year last certain in same the we in which retention XXXX. XXX,XXX quarter cost were software the acquisition over both across managed mix year. our by the cash in XX.X% the driven compared were we're The offerings product get

we to and last continue. we profitability As trend quarter, our improving this mentioned expect are

a a we million noted, increased quarter segment reported agriculture on loss the forward X, million of Joe year fourth the and with compared $X.XX segment XXX,XXX Non-GAAP that since $X.XX in the nearly net for operating quarter sale XXXX. of fourth income or or in which the quarter GAAP a ago. share This was basis diluted and weather GAAP a XXXX, improve loss significantly diluted ago. in fourth $X.XX fiscal We completed year million operating in profitability quarter $X.X net $X.X GAAP or lost of share company going million a $X.XX income compared same XXX,XXX, a non-GAAP will share $X.XX year. $X.X $X.X loss As a last to share May per income the X.X or the to per the million a per the loss share. loss with year of million X.X on compares

Now, results. let me turn to segment our

XX% X.X million prior were was compared revenue to this operating quarter to offerings. we in of for and last to more systems compared acquisition from expansion this X.X $XX.X Gerken margin Albeck in was driven scale year. year level was an the with increase transportation our for growth within fourth operating managed quarter demand million get income the year XX.X% Our increased margins increasing contributed XX%, our AGI and primarily quarter $XX.X of and related service prior order compared X.X segment The million the and software by volume as million the the quarter fourth million segment

compared Segment quarter in margins $X.X to or increased XX.X% and year fourth year versus last operating of million quarter operating for an the XX.X% related million to compared increase $X.X year quarter level million XX.X revenue the were volume. for was by the Sensors last Roadway XX%. Our million XX.X the income driven prior the was

quarter for Our loss loss agriculture costs. million level in primarily year, in $X.X was fourth was the by expenses XX%. a an driven benefit the in was increase million analytics quarter the in Corporate last of fourth million the XXX,XXX fourth versus increase prior to and in the $X.X year. quarter $X.X compensation to X.X an revenue were million operating million $X.X prior increase quarter of compared weather and Segment the year

Now turning XXX,XXX light and cash expenditures the quarter. reflecting of spent total end model. XX.X revenue costs in and X% software consistently our asset investments were in and to quarter, below fourth million which at liquidity capitalized the of run resources, business We short-term capital capital the

continued our to build progress start over in to to should top-line. to the will In cash and report that, capital improving back the focused we're call solid Joe. We position working expected With turn continue both going and be improvement and pleased improving with on quarter profitability, forward. I bottom our another in performance summary, the

Joe Bergera

initiatives some innovations year I'll profoundly market computing commentary mobility broader expectations Great. product and Thanks, commercial ubiquitous for of Doug. changing believe We various key that of strategy, the and operation, cloud both reporting provide transportation infrastructure. for convergence segments our fiscal and and now associated connectivity, on is XXXX. and utilization

from integrate fulfill anticipate example, public platform general and shovel ClearMobility discrete sector opportunities continue Iteris Agencies reallocated infrastructure. particular. services government our components sensors, market represent applies service key recurring delivery artificial at It managed of new time, operation platform, strategy. levels ClearMobility advance and intelligence, traditional of pick software our in to advanced we agencies to such projects mobility will services increase revenue in computing, at of change will to a our revenue missions. and cloud-based continue and and monitoring For dynamics spending models initiatives. and may annual advisory how our is products. the meaningful cloud element And purchase, transportation use ClearGuide These same software-as-a-service to the technology software-enabled their of to VantageLive enable all be as

management, services introduce maximize other Cloud the to preferences. service model, managed deliver processes services their workflow unified to plan platform. leverage these upon software-enabled plan However, and last These expand XXXX. form increasingly ClearMobility address fiscal managed managed and changing Iteris cloud we components enablement we identity for in software will individual customer To services the this This service we of to year. services introduced support common software-enabled provisioning, will new also in from intersection operating the licensing, new the

both the reporting three key product to will segment focus Going This our key the of the for platform. each initiatives roadmaps Iteris products aligned of forward, transportation the increase I of the our segments. resources the individual commercial in on initiatives. for efficiency development be and alignment system roadmap. cloud accelerate In our discuss will should will ClearMobility adoption FY'XX,

customer of managed Florida; and and strategic continued our second several commercialization portfolio. our the and adoption services third, include principally of Texas penetration major development the releases; of which software-as-a-service geographies, further First, growing

bookings transportation fiscal about and pipeline cautiously for quarter, especially COVID-XX recent yet While may continues in optimistic year-over-year any continue unrest. our growth XX%. deterioration sales system contracts. continue despite XXXX the first despite fiscal fluctuate political to segments to we've as experience and the and system The favorable. revenue segment more XXXX about to to Likewise, rate grow multimillion broader our we're revenue, any growth conversion pursue given uncertainty bookings Therefore, through we dollar in by anticipate the economic to quarter we increase continued remains transportation

income first the mix. due increase segments also fiscal will dollars operating operating We product the segment's to decline income and quarter sequentially gross though margin year-over-year to expect XXXX

the Sensor In commercial segment and discuss focus segment. FY'XX, three the on key Roadway let's Now product initiatives. will

in and introduction and third, we alignment an create development; up-sell drive competitive cross-sell product differentiation expect and new further improvements second, First, to of adoption. the revenue; platform, and increase more our additional ClearMobility value enablement to with capabilities Vantage of which our customer channel offer sales Sensors

product also roadmap. While contributing a three particular make of I our to releases. want or upcoming to Iteris note cloud take

First, features other a platform include new that detection high will video. definition among

detecting measured as by control. Each traffic terms, upcoming to ability data of economic, customer adaptive of devices real-time and detection product is sustainability Vision. real-time our Iteris contributing level use for value expected our create releases our these of object devices the in to provide as significant Second, artificial edge safety intersection And intelligence third, from streaming support well classification. to the to deep Cloud

said, year-over-year Roadway XXXX is quarters. segment's a growth events, first no Assuming increase the report first expected than Segment in recent quarter rate adverse will fiscal Sensor to That significant lower quarter the revenue. be

our digits single For very example, prior surge contract SmartBuy unusual in experienced the in XXXX summary, expected of increase quarter the release we year first the fiscal a operating based in margin the are first aware sequential of several volume Texas a income orders. dollars. a months low accumulated As of comparable due and to anticipate reinstatement sales of to Still, mix, product year-over-year low revenue And of associated softening in the and segments, improvements delivery reminder, infrastructure both transportation due enter EBITDA the and due we on and for quarter reporting and fiscal fiscal segment Therefore, the we gross quite infrastructure But we XXXX year In non-GAAP primary demand profitability. we some in current to-date. have as financial as net fiscal And strong. the construction proved anticipate to growth less in expectations our income first the model the remains adjusted that products for as our quarter total given double XXXX operations COVID-XX. well digits, services our and software enabled essential affected. exposure XXXX, has is been our resilient to segment's

with previously incur associated will agriculture additional segment and GAAP our we various sale restructuring the So communicated. analytics charges of some and weather as expenses

the noted the remarks. year, remain optimistic the reasons we For in today's cautiously balance prepared for of

too However, the to believe expectations be unusual poses certainly attempt misleading characterize actually future. and of current could the environment in degrees we far uncertainty it to

form more commentary than one plan until As reestablishes provide a equilibrium. the to do we of not ahead economic environment result, some quarter

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

Operator

The go your Riley. will from Van Please question with ahead with Jeff Instructions] [Operator question. you. Thank come Sinderen first B.

Jeff Van Sinderen

Hi, everyone.

us you terms on new experiencing of can prepared touched color weeks give restrictions, us color, that business with Has any using you with some the recent more restrictions, what but changed in in your on you're give of other of So know agencies procurement. comments, I you in this any just covered there? can

Joe Bergera

Jeff. Yes, question. for the Thanks

of really change we're involved home the And result, areas X and various be of have seen in XX it infrastructure of lockdown. we activities kind from come by to that supporting due which didn't a critical to provided for honest, the any So I any the And as the think haven't of we delivery of see significant restrictions, geographic what is couple impact it's as meaningful months. out last in any really -- never the was work subject that we're supporting by fact largely to again, are essential XXX. is the

really steady-state. we largely again, either. we significant didn't really activity So, It's experience resumption in slowdown any seen any therefore, significant been and haven't

to of as signatures a agencies, office disruptions. had since and to in some And of that were weren't to being where of some And instances were not have the wet but signatures get to some little almost had work in there funny, again, cases, other lot where bit were slowdowns we've of in of started help said, with kind perspective. that like new that things start we see were respects, matter value in DocuSign able a those and kinds these happen. we there wet to A them Now, agencies practice, contract contracts. of couple use a significant did those unusual, not and for things therefore some things require executives terms

to want any slowdown I Iteris we've recession, all right? I have seen that any is have long not we not as really and lifted. sector would being well. have certainly really But change we a to-date, we be impacted immune, that be Now, every think sense sustained be impacted, to is either said, going again, been impacted, not if clear restrictions seen

Jeff Van Sinderen

include that incremental start and just more products, in timing you maybe helpful. And maybe are I revenues are wondering products? product speak terms revenues new replacing when know about bit they might there. of those around little of sort you most of can of touched generation they That's a on then then. features new differentiating introductions, And what Okay. those, current more

Joe Bergera

Yes, good question.

enhancements talked modernization those general, the offers. activities. new whole that we're So, all, to feature I represent that platform The most of and wrapping managed these represents in however, around offerings, capabilities new everything service

to we're software will from that. and set again, a perspective, a industry performance continuing push standard to So do continue the feature technology We've and from and always envelope. the the

market is product again, services the new entirely to-date. But so And really to bar. the respect comparable move the anything managed that, to just offers, are in these not There's with concepts. continuing

as concepts. we degree to degree categories, new financial to the We that's but services to so introduce, creating Some new the is limited introduction particularly expectations, But of managed evangelization as that'll going of probably managed that have to these to would we're bookings. benefit. there some do set just and some tangible occur be expect the of form see services, some from of we

that revenue, these of the introduction the from typical the happen expect evangelization the to and then contract that work to takes I cycles it Given that any revenue and of managed FY'XX. length on material in impact no services convert then bookings wouldn't to time needs of

Jeff Van Sinderen

And could about thinking How have opportunities then, recessionary otherwise? come the there I final are if it that one acquisitions you just just environment. Okay. opportunistic up squeeze that one, think some may that in, wouldn't maybe That's be given and COVID up use, come helpful. you to

Joe Bergera

country targets like. But point. began we We reticent Like a feel to acquisition look to down Well, when while a we within the most at couple forward so months, reestablished, market first of we we particular which to some within think say norm, the the the the And categories now of we've would in fast compete, we had do are currently wouldn't undertake risk new have those understanding been -- to was that like acquisition again existing we categories. new understand what in due environment, going the in know normal understand I COVID-XX. not we specifically companies, our all, categories operate. we shut which we the an that

the an possibilities I acquisition we in participates where new able And to in while that categories understand well, seen we in category that do we this at want go to which And would if point current that out perhaps lead to acquisition understand were an in we'd candidate like we we the be ago. we think entirely would already acquisitions, months we find don't participate, would might an don't so open we feel dynamics, to then and six have more we that time. or for current do believe XX -- environment

see I declining I is to I this said, don't reasonably point, valuation expectation At the No, participate, to the of we the couple play how still we your we strong being like dramatically. have target. that that open, intending like that we therefore, think things We'll to a position think categories are risks answer the they acquisition considering Now, particularly and be the next in over and of yes. in valuation. situation can this most we'd now question, transitory an to the But out the certainly open find possibility are are which somewhat see understand people expecting, sale months. understand take our, right

Operator

Markets. Thank The Northland with Capital go with question. your Mike Please will Latimore come question next from ahead you.

Mike Latimore

great Thank a amount was service The on and that guess. you. margin up I there. fair stainable? What drove that is sequentially, Congratulations a gross year

Joe Bergera

answer want do Doug, to that? you

Doug Groves

Sure.

our gross in service So, Mike, we is is margin. that where, revenue software report, the

nice offerings. to in prepared seeing SaaS we're remarks, increase a So the our as in alluded

is helping that an the so drive, And margins. in increase

Mike Latimore

-- when given you doing those you and what then, base two then this additional I operating [ph] sold division of can to [IY] And expense get level you you're cost reduction. guess Great. dynamics? your, terms in

Doug Groves

Sure.

with enterprise savings announced, that, So there's $X little cost we we restructuring, over the a the million previously probably that signaled across year.

the to line. towards that's spread we're it's what the working in corporate of any kind It's across or strictly company. and given so, not one segment And isolated

So, million on said a top cost about drag the through -- of see quite fiscal million, over about earnings million XXXX. would on we $X that was of coupled Weather and not million Ag in obviously the savings, a little I elimination of $X the headcount, year divestiture as annual a which, $X we and would expect a business,

Mike Latimore

that the new paths that couple of well? then, sort products Or streaming, installations? new something upgrade into easy to as be And sold it. is these real-time of some going there just there the mainly is on Got are

Joe Bergera

Yes.

So I that the with and going referred then release, is only to most to be since feature platform new forward. the is going -- it available current that

know -- of running So products be intersections our streaming with the which if able some would some don't what of products be not you're adoption capability of the correct, older -- Mike, could is which there'll like. information rate versions support that the but support the I offhand, there we our from that capability. would you get to streaming back I that won't to you'd be

Mike Latimore

maybe just are And then attractive there? what the And [indiscernible]? you Great. year, then, what of case last would you smart thinking about margins service on this know -- I have that one do think you bookings use would kind be managed the but and gross most

Joe Bergera

Yes.

talk to margins. then gross I'll So the first let's and to part, the talk

just own part service. view of working deployed equipment, new these interest managed as where detection particular services is larger to this to arterial and concepts medium road respect seeing with is take aspects intersections any particularly, cities now, -- monitoring small with right certain most And but optimizing arterial not it management. the So detection managed so particularly and a we equipment sized that over of we're at in a that's management and our

Doug Groves

is software and margins, types service we're And providing. varies really the of Okay. Mike, our it bundled depending the by of in much that on upon, managed gross contract how

or at above at what those it's current run to out. service be, generally going So, least margins speaking,

depends services? and the size on and it to how we're services versus different So, of going contract software much the other provide is professional that

Operator

come go The Shlisky will from question Securities. Please ahead. Colliers with Thank Mike you. next

Mike Shlisky

you entities that Joe pipeline afternoon had to -- pretty looking curious, other your outside and opportunities big Good Going that guys. the U.S.? in is actively is comments, and of you're I'm grown your some opportunity? of countries going at orders forward international big two how In noted a

Joe Bergera

Yes. good question. a That's

channel have market opportunities. products do So inbound We sell really about not sensor our products, software a we I were mentioned distributors not it. hardware because don't some were to per software. products, have These se but excited internationally. that our international our our but roadway We who

actually expansion with the with opportunities one entity is was commercial One some in second an on a the that previously Greece. Canada. from And sold in a commercial of operates was entity -- or worked

to an we products. would like So is a see channel products. yes, excited international we the international We were at the software that have to opportunity. point, there distribution our investment made But true yet interest in not in inbound believe this really developing, for software the

will as is inbound would we see if internationalized. We it hope I to respond based our had And, continue would sense, market ClearGuide demand. to to we've that to however, particularly so makes on which continue that response fully product,

Mike Shlisky

contrary, can a of most There some mix? give of a was we gross gross your I could piece break fixed detail, breakdown on had most to out little kind 'XX and upside some and due fiscal your you the the hands margins prevalent of in it. was just quarter us Got in outlook. scale. kind scale some mix. to kind pretty have just you upside a margin Can to just here, mentioned wanted the on which of turn strong us, gives your and and growth due gross was for between based contract margin this Could to the more of be just maybe you you your us gross upside margin

Doug Groves

Sure. I'll take that.

our and saw lot comp, particularly a revenue good really at of our costs fixed significantly results, in, So, pretty up to fall say portion are we in if our to through the you because a QX business. looked was that contrast as a software of just the bottom-line

given versus business, margin which the any quarter upon is be. little more that and variable going mix gross to will the So, say depending professional consulting much software drive what services a bit how is is

have have a did volume. nice mix in we the quarter. actually the a We really good So, did with quarter

So I volume the that continue as it But been to is we've will vary will quarter-to-quarter. expectation margins increases. think, expand as our signaling

Mike Shlisky

It's more very enough. And for me. one Fair Okay. been perhaps recently. in headlines

fund future to help this like tough to maybe or elsewhere? at act cities deploy business to in operations. with because they save reporting to police a curious, does to scarce so traffic started what could already I'm costs change that budget be role least have any them in play help department have and things business can states Some Iteris the enforcement their

Joe Bergera

interesting Yes. question. That's an

manage a between there's services our So designed in operate infrastructure the are that designed that products for really difference and products enforcement. transportation and are versus to market

will have to where been enforcement component arterial and enforcement we for design So light of are red hardware currently, be we and them. corridors. speed not dynamic We getting involved zones limits application. in there'll highways of products get, camera or part like have variable sections do that running, of pricing, have those actually of Certain the software an kinds solutions example. do any those But certain

think have particular so address that would to demand. And answer specific your don't question, that potential therefore, offer I we an today

Let's don't not we get that say currently that into compete category. in market, we but couldn't that

Operator

go The Group. come sir. you. Thank Sigdahl next with question Craig-Hallum Capital Please from Ryan will ahead,

Ryan Sigdahl

our for Thanks taking questions. guys. afternoon, Good

there. you quarter-over-quarter, basis, implies is I something that's that so Just sequentially, for the seasonality gave you on? isn't then, help lot there the What's year-over-year on guess, outlook fiscal my a back when down going of QX of transportation system, And on a like math correct? can XX% elaborate, envelope

Joe Bergera

that? Doug, to do you want speak to

Doug Groves

said, on Yes. as but contracts. mean, Sure. of -- and will seasonality year-over-year. sequentially revenue the timing of recognition it the up XX% Generally with of yes, to almost we be has certain down I just do

expecting, QX strong we're from think transportation I performance So that, in systems. still

Joe Bergera

another, including the you with when are numbers, two obviously, results, And just [indiscernible]? then, to the transportation are one comparing entire you are results businesses comparing coming those you QX enterprise Ryan,

Ryan Sigdahl

system transportation looking at just segment. was the I

Joe Bergera

Okay. Yes.

I typically the you totally So, And if sure -- question in that what seasonality historically see way understood your has goes was it been of not did other some were if think I'm fiscal was unusual the we saying Doug our XX. for seasonality half however, second the that true, us.

are XX. the unusually of we was you a seasonality very, third of actually expecting strong As quarter, still to particularly XXX% on we growth Doug's fiscal results typical recall, And sort not the quarter But in our first saw what happened strong. on sure again, might a quarter robust and a fourth basis, we're point there. again, so very was year-over-year there in

Ryan Sigdahl

Albeck Got it. that's can if but lot that follow-up, break presumably a And of out a is included in grill. assumption, what then, you maybe Gerken because just that

Joe Bergera

-- doesn't that operations ourselves. to able Gerken, in going going made we some were that some Actually, that, market might be remember investments to the about we develop out -- primary we forward. you and had Albeck to break that their we're fact When Gerken not acquired Florida Albeck talked

But even in And -- Iteris pre-Albeck transportation the Gerken so the had Florida-based Florida, and Gerken also addition in some some Gerken pre-Albeck activities and market. the we Mid-Atlantic some Iteris even in in already they And had had systems, Florida Midwest. revenue. resources presence Albeck to also

resources Gerken systems the this then And now Gerken, the regions. a formerly is, the to pointing Mid in absorbed so Albeck we've into Albeck operations region Southeast what reorganized reason as which I'm as Midwest region out our the systems our were And those Atlantic been created transportation acquisition. have Iteris' well transportation now that respective and prior in was combines Southeastern

revenue any really in Albeck it's would the say to us we revenue. not previously Albeck I for estimated million. that a would about possible like typical order quarter be But of longer break So out Gerken X on that it, Gerken

But fully So and sense it we longer. operations it that I way. kind we to any about think makes can't integrated could the you think it breaking out really, again, about don't of think

Operator

go Securities. with JMP question The your Osha Thank question. you. with next Joseph from ahead will come Please

Joseph Osha

Hi, questions. there of guys. Couple

this question. service First, back to managed

call you recurring. services said I You Joe, don't half That's spoke earlier being your it. transportation were recall believe, I in bookings about correct. the

Joe Bergera

transportation recurring of annual revenue. were in right bookings the that's QX half systems about Yes,

Joseph Osha

Okay.

divisions imagine of So fiscal the that of XXXX. percentage that What do end let's comprised imagine might revenues, by point? that recurring revenues at it's you be

Joe Bergera

Yes.

a moon that don't have was we of result. bookings Joe, now. That fantastic So, obviously over say with that I could mix. wish a I that. right was view the good I

excluding enterprise. a is say, this the there to variability highlight of systems, then not a today for good from is total objective the we three the but the view will total I probably an over large shifting going had of we entire Now recurring is what Unfortunately, revenue total of obviously potential we internal years. of our going basis, mix mix of have be which About that demonstrates expect for annual reason do and XX% revenue some of wanted because is only increase is, enterprise of it But the that transportation And annual which degree I would to revenue the try quarter-to-quarter. to enterprise XX% the think to I on forward. now split would be [indiscernible], been to previously talked was and don't. sold. revenue I recurring to we planned

Joseph Osha

And that to be I fair revenue that in assume of transportation assume services.. is it recurring would more

Joe Bergera

the opportunities basis a recurring base. absolute believe But We that in sensors are do that's On increase that's our absolutely Yes. to much continue annual work an on to we'll obviously on business, correct. that. revenue lower there

most recurring And so of in you're will revenue systems the an be on annual correct basis, segment. absolute our

Joseph Osha

thanks. Okay,

question. Next

connected see you that long vehicle till trial some had That's area. turn we actual interesting project, that them, an mentioned production of might You of a really revenue. to how two

Joe Bergera

in as application. We the them first in and Vegas. the Minnesota. one And mobile so we're the other one phase is is currently multi-phase pilot think the Yes. of a pilot that The pilot phase, in the assumes is a release one so in second of Minnesota Las second or well the of

unclear. And dollar these Vegas on monetize particular little is follow And look the to point like so, question on your the project, more revenue you point, at do Joe, on do is, how the visibility better models that million connected to could a which if and But vehicle this have Las that we project are being we bit speculative. revenue is a the of answer it mobile will of form there clearest country? the monetize the or opportunities across we path and right the will be with in to application. believe one as a shortest it's to Minnesota path But the it now model experimented that be recurring kind some the do still and two, of what

Joseph Osha

And final gross talk the Okay. then today. Thank about been lots question, there's revenue of you. margin

further down some think P&L I the well. as room

So understanding full revenue not for guiding the you're year.

are growth model isn't minus going flat, How do think revenue growth X%. about to to is operating FY'XX? you going is be that imagine for Let's x your costs be operating x,

Joe Bergera

Doug, you want to talk that? about

Doug Groves

Yes.

our and look the year we investments reporting we corporate go as we costs two already at then expect to in the segments because the this past. flat have of our now So corporate forward, moving infrastructure made Joe, company, we've remain the through as significant cost. would I

of And those be at revenue we margin segments, increase then shouldn't some expansion much in as there the costs. in So see we see there. corporate the all reporting an two growth should

margins year should it So you combination expanding of 'XX. through company be those two operating wide of fiscal level moving up things, the when roll

Joseph Osha

Okay.

right, you're me a fly significant And that last for dollar so been a so overhead terms, percentage to would reversal pretty be years. of let trend, from the growing to represent has clear, revenue that this several where

flat saying can that revenue dollar your You're you in hold terms for number growth?

Doug Groves

That's right. That's the plan.

Operator

no show I time. to Bergera further back it closing you. this for Thank turn questions Joe at remarks. I'll

Joe Bergera

announce updating to We in the and point, appreciate of 'XX We today. as forward first quarter support At our our always good All progress. this everybody's you. expect you right. all FY August. would questions look we results Great. to Thank continued on

that point, and again. And At thanks speaking so time. we'll hope be We participating. we conclude everyone call to this at you appreciate today's that we'll

Operator

Thank you, and this today's gentlemen, ladies event. concludes

may You now disconnect your lines.

Iteris (ITI) 9 Jun 202020 Q4 Earnings call transcript