ITI - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the Iteris Fiscal First Quarter 2021 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Todd Kehrli from MKR Investor Relations. Please go ahead, sir.

Todd Kehrli

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

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

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

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

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

Joe Bergera

good today. us and I appreciate Thanks, Great. afternoon, Todd, everybody. you joining

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

I'll our on May X, Weather sale earnings segment Segment discontinued in presented this of such, today's the reporting and periods the that to Solutions despite In quarter, continuing of Iteris our as as our Management strong operations Analytics our all Infrastructure And during Given discussing Agriculture operations remainder be Smart only XXXX, are call. announcement. experienced demand results for for the of we DTN LLC Mobility COVID-XX. first

sale of structure reported detail the in transportation representing For of after charges two million. enhanced profitability continued Agriculture In a few Segment and in Doug Weather recognized revenue, growth the company's cost bookings, company's we bookings period, following two dynamics Analytics both again backlog, total measures. in the a growth, turn, Due our the discuss and these EBITDA. also income, $XX.X to net will record an drove even restructuring and combined, a year-over-year reach segments XX% increases total adjusted in $XX increase in XX% increased our and million year-over-year more total to million minutes. for significant the for in transportation net $XX.X combined, ending our segments solid

revenue, experiencing period. conversion, western the backlog COVID-XX. QX, right delays our The with region, provide some Southeast million in as year Mid-Atlantic performance slipped particularly prior In XX% reflects growth strong $XX.X regions of segment. let due a to same few projects Systems representing the overview Segment our minor our Now, to Transportation versus recognized brief me by increase in segment's a and performance a in

dynamic we in market of create Although future conditions in quarters, pick the which we uncertainty. of high majority revenue to up operating expect are the this degrees

future customer use an $XXX,XXX. model. centers of to for net value contracts executed net quarter performance nature quarter annual with have bookings contract now is more we as of the generation XX% Hayward, contracts a to next our Transportation to support as XX/X record our clear include Quantity the Segment of lines reported Advanced strong intersections Authority the contract, Commission, will of solid bookings demonstrates Indefinite total use Orange With to recurring increase Systems across Metropolitan million for device throughout contract business million health $X.X software-as-a-service year-over-year and monitoring Area System corridor. software first This for of this Highway includes safety operations essential $XX valued representing net intersection-as-a-service various first and San segments branded traffic and connected A contract And contract segments agencies as the automated The of $X.X provide provide million, million system Street a will revenue. our stages the $X.X from various Francisco traffic our products. Notable corridor. Federal all a of Metropolitan solution a California agreement a Commission, with Information of demand million be finally, Katella the for preparedness. Transportation the performance first to portfolio. recognized intersections continue service and the $X.XX to Transportation County bookings flow Iteris's vehicle in guide, solution deploying of than vehicle Transit Administration recently Delivery/Indefinite Area Traveler increase. $X Bay function solution a San Bay of intersection-as-a-service managed for XXXX quarter at Francisco the Several measurement commercial Contract which XX% operation and from Our million The About for at

System increase. segment's quarter increase, $XX.X of year-over-year a strong which a ended represents sequential Transportation XX% first the backlog million, Segment a bookings, the quarter and XX% the With with

In the revenue Now of a moving increase. to year-over-year Segment our X% recorded Roadway million Sensor Segment. Roadway $XX.X QX, representing Sensor

result comparable. given segments consistent the the year growth with our with very recent average, our result unusual were While was below we prior and the satisfied the expectation, rate was

in As accumulated the our several a in of due to reminder, a quarter year last of reinstatement surge associated the and SmartBuy the orders. contract the first segment Texas months revenue experienced release of

against quarter, discussed XXXX segment made the the our first commercial fiscal products During and each that three on tangible progress call. our last we earnings priorities of

and these offer For sensors third, adoption, product are: our your of our our First, cross-sell vantage increased clear contributing and additional while mobility new to drive enablement with differentiation Iteris' and create value alignment also channel in which improvements of expect Second, and sales cloud more customer capabilities up-sell to competitive priorities development; roadmap. revenue; reference, to an further introduction platform, we

to detection into more the Rock, Systems order sold million this cross platform, For secure team Segments. our Roadway capabilities transportation an between of new $X see service account Roadway Transportation the a City With of Texas. example, type intersection QX, for of we certain Sensors our our from managed Sensors mobility opportunities cross-sell systems in offering and clear expect Round

Sensor channel new during to field as program improve partner reduce dependence productivity as Additionally, on well introduced the a COVID-XX Iteris technical certification and Roadway sales expertise, restrictions. resources Segment our partners

parts the let data Doug ingest initial the our this front, financial manufacturer, a new will consumers enable Communities API streaming Cisco intelligence on Next introduced results. into our of and segment edge of is ingesting to product as data that, comment our new smart as and streaming non-disclosed layer Vantage for API Iteris partners automotive Connected Infrastructure. sensors. from detection our a customers global I'll Systems, well who Cisco's real-time include The the On With cloud, platform that

Doug Groves

Joe. you, everyone. Thank afternoon, Good

further for reminder, press on a are which please our the under filing, during financial a website posted supplemental see XX-Q document, IR As company's discussion the matters description today. metrics and release all call of of

in year the Amortization, first non-recurring metrics, like my few as a Weather increasing results EBITDA In the 'XX, discontinued also top are Before But with non-GAAP Depreciation the one-time metric, of line also The focused continuing our financial ongoing and Weather will operations EBITDA QX only on goal comments the of Analytics the leverage we'll to with restructuring performance and in growth, trends in and favorable in we've margin Agricultural items backlog certain aligns the or As and key of more business cash introduced Analytics our operations seen our continuing Taxes, Joe compensation of operations. year-over-year believe quarters new this to Adjusted sale filings, company it's the in DTN our with reported last results, we a be noted, charges generation quarter metric and completed the fiscal including our improve calculation. consistent and in Ag Interest stock-based include Segment LLC. normalized reasonable expansion. Segment today. the SEC P&L, creating and Earnings and for we've adjusted proxy

the details of to first move I'll quarter Now, results. the

the in first mentioned, $XX quarter ago. $XX.X for to total million year same to revenue As 'XX million increased quarter fiscal Joe compared XX% a the

driven million, The restructuring expenses $XXX,XXX. quarter in from Our channel the in compared the the scale year quarter $XX.X we increased year. prior for expenses quarter. down of improvement product were to first charge, adjusting margins get quarter the improve prior $XX.X and XX.X%, After XX.X% were same last Operating more current the restructuring quarter one-time operating gross were a Sensor business was year compared Roadway over and volume million first in the by mix The as include Segment. on the in quarter. same did non-recurring $XXX,XXX margins to the in charge

or net in year. to or year. reported revenue, $X.X our per with for quarter, operating $XXX,XXX was same year and profitability operating this compared last $XXX,XXX of last to in share per $XXX,XXX The GAAP million quarter X% to continuing first quarter revenue nearly million or a of the the improving in ago. first approximately As We income loss of quarter compares GAAP EBITDA of with or in increased we operations the $XXX,XXX mentioned $X.X expect quarter we $XXX,XXX loss the quarter first loss last continue. about are of $X.XX share, first which from GAAP a compared $X.XX the income trend Adjusted X.X% a

let our Now, results. to turn segment me

expansion $XX.X first income was the and quarter, Our contributor QX year. Transportation the margins The in results. in scale first it $X.X related million, million, primarily more million Gerken for this prior XXXX increased was our driven level this last $X.X to was for get in growth volume not included million prior XX.X% to year margin since to segment. year of to the the was main compared quarter, as XX%. from increase Albeck $XX.X revenue compared XX.X%, by were Systems was quarter operating we the the compared an operating Segment quarter

$X.X to Our revenue year were $XX.X and compared Joe $X.X as by in last or quarter $XX.X noted. first the an compare, XX.X% was versus million for a year was to of QX quarter X% increase million Segment Roadway the related million income operating level the prior impacted compared million, in for quarter last improved versus margins year. $XXX,XXX The Sensors million and expenses direct XX.X% year, was Corporate improvement the prior difficult in million year volume, distributor margins prior compared compensation year primarily were prior benefit compared product from fiscal mix, down the the was the sales sales decrease increased quarter. by $X.X 'XX; decreased by in $X.X the to QX was quarter costs. first year, sequentially to in more driven and driven operating

and to back first I improving included sale resources; the Weather on solid turn the Analytics results. performance capital continue and of quarter, $XXX,XXX the Agriculture Segment. call Segment, from of Joe. were for remain the the under we're at short-term million expect the and proceeds $XXX,XXX prior restructuring reflects profitability year focus increase liquidity total report top investments to With the the capitalized and flow continued execution end those acquisitions, compared whole and X% Weather the costs year. We operations spent reflected position company, to the another as capital improved to any to we our build forward. cash sale quarter, the $XX.X Operating the of and cash pleased Analytics In to in was capital. Turning over net the of Ag continuing will in software $X.X and we to and we expenditures revenue and improving cash in that, solid expenditures of million going from and Absent of quarter, Joe? working both, our summary, which continue bottom-line and expect quarter

Joe Bergera

fulfill traditional will technology time, at their advanced of believe reallocate that market continue trends, will missions. believe with initiatives. we the government to Great. Smart Doug. change agents agencies at all enabled new -- from software And delivery Infrastructure the agencies emerge pick-and-shovel temporary the Notwithstanding we secular continuing Management challenges COVID-XX, you, Mobility of how service to enjoy transportation projects favorable to same budget levels models Thank

is to execute our cloud prior will we element key these platform of mentioned the to to solution continue In ClearMobility the underpins strategy which calls, our As against platform. QX, portfolio capture align ClearMobility opportunities. Iteris and on ClearMobility the platform Iteris roadmap,

to offering model for we example, two that Rock referenced offers, leverages of new one augment introduce and will The ClearMobility platform For the the layer customer plan of service a trials which new earlier. SaaS Round managed application begin

average the the an The pipelines. of total in value in dollar sales of to opportunities by increase Additionally, Systems Segments of and with growth opportunities, framework sales common our we'll various have From integration number interoperability Sensor the commercial new increase Roadway an somewhat. and driven has our while of advance among the their is seen both a API decreased size new products. continue our perspective, release SaaS Transportation enhanced

draw conclusions, providers In who may, like at provide early While it shift to of to shift is a favor COVID-XX are solution such Iteris believe turnkey least scale. would general, too requirements we temporarily, Iteris. to benefit solutions able purchasing

some characterize phenomenon lumpiness. this imprudent a about cautiously of call, the Since expectation large fiscal be conference to our however, to our lead therefore far of level we to will ahead. it bookings attempt too we with optimistic However, XXXX; increase uncertainty, awards, remain believe few current to the timing and would could last exposure

the As quarter form out result, some commentary a environment provide only equilibrium. one re-establishes we'll until of economic

to activity our recognition revenue Transportation growth the QX. for to Roadway right, backlog Sensors the quarter, single-digits, for sales such overall the we COVID-XX similar current and in revenue As support to mid-to-high some for expect in with second the strength pushing Systems experience

year-over-year year-over-year. improvement anticipate and the year-over-year level operating we income in quarter, net adjusted while Additionally, the largely in a challenging we significant by despite in increase expect driven flat both Therefore, growth be report segments income environment. segment corporate expenses volume our to EBITDA, another second both, will economic

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

Operator

Instructions] first from Riley. [Operator question Sinderen Van you. of B. Thank We'll Jeff take our

Jeff Van Sinderen

aware the Hi, first us procurement maybe congratulations picture right. on considerations know, some kind And of the agency of you little everyone. great should on winning know we should But metrics; improvement. things see it's actually, during to a terrific potentially the is Joe, pushing regarding I I you of how give the all, maybe budgets, COVID; to can you say, color more evolving during dynamics incremental the mentioned the that year-over-year around -- other era. timing, be business COVID around

else Just anything you can add on that?

Joe Bergera

Hi Jeff, to voice, good Yes, sure, it's gladly. hear your always.

total we've have -- maybe pipeline that our -- dichotomy has grown as seen clear as situation. changing exploratory the we pipeline a last would small said, dollar there as that said, initiatives. and all, of is bit, dynamic a of things in being from many as But we we a that today we in on that But of I far a with as to couple of so it month have environment increased interesting forward fact, some going seen two being opportunities said, or today, sales of haven't be to the -- small seen understands or have a the without little sort absolutely interestingly, So, has maybe just so kind an be in projects, value to months sure strategic ROI right where average opportunities want there. what of large result; first And as is pushed see procurements I'm very sort make some move I different continue everybody could -- or as now; of to, the ago. agencies a of quarters, are value smaller weeks And seeing continues rapidly. the or that couple our couple over that even we

Another benefiting see seeing that -- interesting pursue it's we business. the we're is non-incumbents as that is difficult for aspect And actually increasingly to that new Iteris. that

market our that focus in we within -- to at markets, We the leader. -- presence we categories are have most in cases, least the primary strong tend on, it and specific geographic

our new finding the competitors we're accounts increasingly environment. current that of we are difficult position finding are it because number in so even growing accounts penetrate in a our And continuing position, to

we're this being positive. the favorable particularly is again, are on year; we this quarter-by-quarter. take think second So, actually, actually, have fiscal that we our we Iteris good feel trend half a But balance, things said, you don't certainly and especially which look fairly to visibility, it current challenging somewhat But another very point, at ahead at so into fairly interestingly again, is know, -- all for point. we is and as environment, this economic like continuing things of

Jeff Van Sinderen

to mentioned can recurring. just good touch prepared your in And XX% Maybe that, you and then, ahead. of hear. on -- that's Okay, are comments think go bookings you systems I

Joe Bergera

Yes.

For sure, yes.

So, to software; as non-SaaS recurring of other SaaS, managed model. we it revenue, revenue. -- define our transition SaaS accounts -- our some have we legacy our to into work include when we to then, And continue it also we do some services would includes

bucket; total we related. managed quarter, when that the software into million recorded so, first services it look systems And be recurring XX% that -- in the fall a or $XX in the either would at of be transportation bookings,

Jeff Van Sinderen

XX% we think then think is to do the consolidated that? should whatever number a basis? And to -- kind or I were and if around XX%, I timeframe I think And already you mean, think target? about about that the get part SaaS targeting And that's can what maybe then, business; should still on you whether good. that you're of you the new on about recurring you we of you XX%, or today? just do Okay, spoke hitting how guess, revenue, XX% touch how

Joe Bergera

Yes.

our still is that target. So

business, Weather of some some particular we also mean, but selling in roadway-weather -- in sale the Ag it packaged Analytics in and with were of business we've obviously, core and was the -- the entirely our recurring, cases, sectors. recurring; clear -- we Ag was that well, and that I bundled the transportation products also With

those still with previously, revenue have we -- the about that streams -- talked went access went we weather know, it As -- revenue did you the away to -- sale. but -- recurring it the and business, away pavement recurring

it updating we'd looking have bit range, we in to same that anyway, at probably still recurring revenue this over we're determine And our what recalculating point, been or high expect little be XX%. at it being model So, the our to time horizon. a but is, less than XX%

Of before it obviously, any going try that that's high to we course, back we're XX% we'd still do and this to exceed it. can expect to acquisitions, the in target or even to XX% range. point, at get be But to everything

Jeff Van Sinderen

if terms Okay. or one can more, And and squeeze could what since any in you of you're us you I mentioned give acquisitions there seeing? update just

Joe Bergera

Yes.

valuing as we is, about February questions though don't in we So resumed in that flow find we've We we should acquisition, an how a are, we and would at concerned actionable. in when one a there of deal feel we feel normal I in people that this would ago. value risks overall do what spoke the be compete, equilibrium, current months do economic the of is what few feel head of would were market a about do more our less appropriately understand; or than the was and probably be be businesses on talked like we about trying and think the we to there in Even marketplace; you point, which we categories our to we would transaction? to risk at now had the feel more one position like like previously, we generally in sort call the least

are we make the -- some adjustments and still than lot better think I'm to to the a I able any never find been reluctant I a on good transaction -- a it to there of is that so said, that it's it's continue relatively net-net, being has something do we surprised are challenges. to we still for it's That to environment valuation; And to But and of and a being probability view now work favorable is sellers while. deal; their continue easy so that on. think do --

Jeff Van Sinderen

hear. Okay, Thanks good continued very and success. much to

Joe Bergera

Thank you.

Operator

you. Thank

question next Sigdahl our take Craig-Hallum. from will We Ryan of

Ryan Sigdahl

taking Thanks afternoon, for questions. Good guys. my

you good going just Just here, of kind on improvement the some nice the profitability, to directionally, here? is a sequential commentary. base off inflicted quarter, commentary build guys last But [ph] of I kind QX mean, overall positive forward business; overall positive for of

Doug Groves

Well, it's… think I

Joe Bergera

want Doug, take you to that?

Doug Groves

Sure, it's yes. Doug. Ryan,

been costs. continued restructuring, reflective obviously, Ag actions and but company the sale Weather our it's focus and that all the the think the of the managing taking; of biggest, has on the the I then being

quarter; that have So, up a goes quarter. I we think have quarter -- the like second expenses, it's going the down little to in won't be in first we certain it and every

you search, line; Our things shareholder proxy, structure, because is reasonable top driven recently the variable, some relatively like meeting; But really that. we've it's while by a the board fixed. and it it's completed to a be I think know, cost honest,

the that a but headed. line, the on fluctuation is to top a little proxy bit, line extent bit it's obviously of little that we're So, for the bottom where think reasonable I impacts there

Ryan Sigdahl

a right of But there on that But was QX; is about looking part specifically, baseline million And most just the R&D. step took $X more drilling at that presumably to then, the a quarter? down, divestiture. maybe down of

Doug Groves

about expect run We'd Yes. of year. to X% to X% R&D this revenue

Ryan Sigdahl

of municipal and you deficits budgets higher level; your But lot out out. recently Good. municipalities, different hearing there? what's and a given local like we've states ballooning conversations budgets Then, have been with just --

Joe Bergera

variability. from variation crack said, a -- so states. and healthy we for Yes, jurisdiction I had least individual rainy-day different at take and they've perspective, there less Joe. There perhaps you'll amount I'll fund, That whatever that an even or tremendous that a impact, economic levels approaches; honest. have a priorities this they be to within being is lot has In from reason, some of that. is a pretty at a different at We're then instances, state-to-state, it's is going to reduction that against are be; the forward? to for funded. mark important probably are we've number like various of would into agencies revenue is spending that seen a that future going it's that already very One streams going on think everyone for of point. is look to spending? the question kind the understand activities And is what the in unclear what little things these federal possibility any be play at are impact that. finding And, of variable, this thing find stimulus. There of And

thing is, we how second The quickly rebound.

which thing, a from goes for need third variation but to funding and to initial of jurisdiction. kind is The there mechanism back that what look of the at it is particular that underlying more complicated the point lot you to is jurisdiction jurisdiction;

know, it -- property on tax jurisdiction? for gas reliant jurisdiction. And or that annual tax. predominantly then, exposure budget are authorization Is You process they tax particular sales is for it that the is the or economic what

variability. tremendous So, again, a of amount seeing we're

keep revenue that thing not. [ph] that is of and certain to for fundable in which important mind, is is are you Another things types sometimes other

And so all geography those at have closely a we're we working in To right be major looking we're every clear picture. in which different things don't of honest, now.

fiscal November started -- jurisdictions it in X. next expect the call our have on better would operate new a have we many because October will visibility we on in of As year which

all then, looks dynamics a I levels be factor at in like. future we'll what change; point, funding determining mentioned So lot And of the at that be happen. various possibly a this what will not looking could

Ryan Sigdahl

with base How noted cross-sell last much in of here kind the hardware one seems and The really kind software the I'll think all of and you it that offerings have? to few all-in back like opportunity to were the do you bundle to a of back queue. solution guys customer But me, a and is or for and forth. bigger emphasis services sold, existing cross then you an kind hop of projects

Joe Bergera

is COVID-XX we significant of for with But We differentiator opportunity leverage significant that platform think the and particularly position is of of in it strategy to Yes. ClearMobility the is strength. think what our a us. competitive it's there general we a current a amount think environment, part

interestingly, couple competitors a accounts by particular owned seconds difficult enter we're ago, really to of mentioned vendors. existing it's I for As that finding are

So Roadway into account competitors have, the to that try out the the strong Transportation number same into customers account penetration. penetration and don't a capability penetration accounts, really through account that strength Sensors degree us shut same in to cross-sell have either Systems puts that or of market we respective the or existing of position the

So a something trying we think capitalize differentiation, it's absolutely, we're to actively point on. of

Ryan Sigdahl

it Good That's for me. luck. Great. guys. Thanks,

Joe Bergera

Thank you.

Operator

you. Thank

Mike We question of from will Shlisky our take next Colliers Securities.

Mike Shlisky

maybe We I other guys. afternoon, can different good one Hi, -- maybe ask way. in of a the questions

usually X start where the July year? the You fiscal the but counties states and sense X of communication of like was cities July and questions the jurisdictions do certain know, don't have start; I some a [ph], ask budget for this how are July bookings

Joe Bergera

Yes.

Mike, -- us, fiscal year in sure is had I September new right, which like, certainly biggest for jurisdictions to don't know, on have we're And July. flow I'll focused that jurisdictions across July, tell opportunity say one know the that's a that in true in began X. pursuing and Roadway new some month of and fiscal the you; of that I personally would Transportation there I'm generally on we in you there we new with specifically fiscal honest So, in they you there beginning and the on see be are Sensors particular opportunities Texas, slowdown are, of first, any and ones both flow But I'm period. what or that starts must jurisdictions that been you're have years deal not which didn't I year aware but Systems.

Systems deals. point bookings out relatively Now, I are of again, made opportunities big do smaller of know, number up really want -- current you however, like a Transportation the to that

the little the a the it's couple a -- bit of a composition that pursuing, sales we're you said, but lumpiness opportunities rather reflection the I of value as it's see not the sales could of next so, And of the quarters, opportunities. of decrease in

Mike Shlisky

color. that's Okay, great

some to turn of to want out DOC I you. there. the budgets thank sure, For state

of asphalt if budgets, some they in construction contract the a -- of are and you asked We cutting budget fix project? or anyone's I'm alternative you can may perhaps they kind saying that much road for Iteris states being that a a congestion; are to be -- afford six nine-figure road they until time construction hearing with coming can't afford seven-figure wondering supply to an as they intersections, their larger -- lot that to have unless as pavement

Joe Bergera

question. that's great Yes, a

the initiatives and kind of other really doesn't lot we those right; seen bond to or impact us. a some of So, to have through special multi-billion of big are the that funded funding dollar tend programs push mechanisms,

I prior only think currently have on mentioned calls, construction I-XXX work Project the we one that's our major that's Orange Expansion we're part in big doing As I've portfolio; County. of project on really

a result world. companies construction of us a actually that of actually just other had work, on similar that but of capacities As global want North around to interest deals, America, in use lot various sort the we've inbound not from in

doesn't watch from in and And fungible out. mechanisms XX other that, our it's investment program things which or any we benefit or of possibly dollars we projects; for isn't we particular try know, continue to plans, benefit now kind nature we'll a far the out; But of funding activities they it's I for. mitigate -- who but multi-billion kinds it jurisdiction majority horizon, to you that's yet point, XX-month some to the but And were dollar perspective years; probably near-term, The terms so for the pushed reduction be throughput construction They funding. some and if ways good associated a of big far, we of those those a tracking, reallocated we certainly, haven't the expectations [ph], not makes And financial haven't unfortunately, haven't. may in are we the you watch can't some expecting because operations but was to seen those that, of of with see over at of it deals couple are it safety us. which something of raise did didn't would vast could -- do; yet sort out. operations. seen which -- work impact significant pushed impact that, they kind Mike, these that been our that; those to a so we over shift any But in up core out of a say that would do look really

Mike Shlisky

-- now stabilize? Okay, sold made and got owned reductions. guess now, any for Clear you a over naturally Can Albeck a OpEx -- little some looking one-time year your more EBITDA; sense you've have you've least at of there what way at Now sense sort EBITDA adjusted up for items I are? some you've of left give Gerken more that it. me. any Maybe or portfolio can of closely, your that the now EBITDA give us the one you us Ag these is goals longer-term margin either maybe

Joe Bergera

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

Doug Groves

Sure, yes.

to that grow should we know, you we're next we be that of would EBITDA sort able the just over in expect of So, teens. -- couple adjusted years, our the know, mid-to-high metric and you introduced

or do depending kind at a what -- So, it as we take, that's -- what's and be operation. the give support shouldn't in to the year through was looking range, a happening. But upon, mean we'd the investment talked to more XX%, the certainly; minimum, of larger infrastructure like, in I a scale we've a because get big leverage as in past, company we much the about need in

Mike Shlisky

That is there -- get like, as contracts; [ph]. operating more you to revenue you're follow-up seeing up correct? like your some scale perhaps that be that point there that But certainly, So sounds is, additional high. then, quite is is you're going to not EBITDA just just of targeting a growth sounds kind XX%,

Joe Bergera

Exactly.

Doug Groves

That's exactly, right. right. That's

Mike Shlisky

I'll pass great. Thanks much. Okay, along. it so

Operator

Thank you. question [Operator Instructions] next Latimore We of will take our Mike Capital Markets. Northland from

Unidentified Analyst

Hi, guys. And have Latimore. Mike for revenue is year? two was [indiscernible] growth last What of on how percentage fast that This the recurring? over is questions. I

Doug Groves

correctly. It's about annual revenue, your recurring if XX% in I the current that's question quarter, heard

Unidentified Analyst

Yes.

it have or margins lower operating does revenue, higher recurring average? than corporate the Regarding the

Doug Groves

some the of margin recurring lines revenue, of speaking, higher the particularly other business. Generally has the annual than a software,

more that, we've some get great of there for said talked opportunity that software either; yet scale would got. expansion we offerings aren't we that growth about margin not and the the is of each SaaS having only really we've software a Now in scale expect as so but as at platforms in past, the

Unidentified Analyst

you. Thank

Operator

At you. we no this have Thank further questions. time,

Bergera. turn conference Joe now to will We Mr. the over back

Joe Bergera

Great, thank you, today. and operator. questions thoughtful We appreciate support everybody's

Colliers front, the Internet Technology, Conference I Relations XX, Investor on be we'll Investor Oppenheimer On wanted everybody Communications Conference XX. to August know that Annual let on September the and presenting at & The XXrd

conference, a that, to either today's you're appreciate you the again with you. second to continued progress, to schedule Thank we report look and on And our call. talk please meantime, you. fiscal with conclude we'll we participating In us; quarter visit updating on the we in If our opportunity would XXXX results. forward

Operator

gentlemen. and Thank ladies concludes today's This presentation. you,

may now disconnect. You

Iteris (ITI) 4 Aug 202021 Q1 Earnings call transcript