ITI - Earnings call transcript Q3 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Iteris Fiscal Third Quarter 2021 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Todd Kehrli, MKR Group. Please go ahead.

Todd Kehrli

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

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

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

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

Joe Bergera

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

the X, announcing press Analytics May LLC. the of results the our during of only presentation all operations our we that third reporting market, completed presented segment as effect XXXX, discussing of operations Weather XXXX. our sale earnings the as assets this financial quarter we two and fiscal issued of XX, on Therefore, December we be saw On Agriculture on ended mind release you the we're transactions at of in to the in close results. completed December remainder X, DTN the the TrafficCast results such, period's the recent As of call. a of Conversely, bear the for XXXX. International segment this of today's of announcement. And periods I'll continuing acquisition discontinued Inc. Please

TrafficCast's portion of were the incurred period, Roadway the included business, for software, in Sensors substantial included was IoT a public is Although minimal. is impact subperiod commercial acquisition The XXXX our results results the is Systems December of segment. for which primarily which our our is devices, in revenue And Transportation costs results. sector in business, the XX, segment TrafficCast

I'd minutes, implications will TrafficCast highlights. attention in quarter our few to turn more third discuss that Doug accounting to like detail Given a the now in your

Our software-enabled demonstrate its delivery model resiliency third in continued quarter. our to

Despite of Transportation million period. third increase same $XX.X to Systems compared of a the we our quarter However, these experienced Similarly, led bookings $XX.X in in on reported our a This of some particular. revenue year large in net the recognition milestone timing COVID-XX and California, delays some impacted issues subcontractors. Southern million. to prior couple segment issues, operations revenue, X% representing total result of the that impacted projects

sequential year-over-year our At a third end backlog ending million company's of increase. record figure million, acquisition, on growth following took basis a TrafficCast XX% of structure backlog from increased in TrafficCast does is the increase represents ending the addition acquisition X% and of a improved The strategic however, net our adjusted the cost the and and our the even of $XX.X quarter increase. combination actions year-to-date would total was which bookings company's in a after $XX.X X% backlog TrafficCast a have include impact total total a total million Our the drove the year-over-year continued costs. EBITDA acquisition. without of backlog quarter, The $XXX.X year-over-year ending net income we the in the first significant increase

provide performance segment. our of third an and sales overview by quarter Now me product let

X% Systems year Our $XX.X the prior decrease million Transportation segment same recognized quarter an period. versus representing revenue, third in

segment revenue the is referenced acquisition. projects mostly which only this in from two the softness stemming recoup the very couple over delays offset on various COVID-related due At revenue we segment contribution from time, the by forward, in moving and expect projects to TrafficCast was the quarters. California, revenue next partially are Southern the to subcontractor As decline in of the earlier, subcontractor revenue, large

some segment's our XX% segment's quarter, were which labor segment's recorded will third be from revenue. recurring the revenue, non-subcontractor period. third direct in the couple the last COVID to future the other quarter revenue expectations. the a in restrictions XX% year million bookings, third quarter in annual About net year. large in of $X.X our same impacted with delays of and as consistent led the $XX was recognized words, net versus million up prior heightened During That's as the Similarly, bookings orders

a a decline to include quarter we for sequential Therefore, have due year-over-year potential than relevant. That factors. the in As Notable most ceiling our of decrease a begin reinstitution a specialized in originally for bookings causing parts orders experience exacerbated situation, abrupt we and mitigation significant Software-as-a-Service. on-call Florida, typically million COVID contract $X quarter third Hillsboro comparison year-over-year fourth a had quarter is in County, an the awards reminder, contract third to of canceled, the expected. U.S. often the higher with the various as been seasonal early a the some bookings quarter. We of net but in from bookings anticipated and large third four-year the seasonality, our measures orders affected to the as said, of consulting by in bookings fluctuation a period period and due relatively orders in at expect larger delayed least booking these not concentration contemplated

from we million $XX as District receive of the use acquisition a proof-of-concept Florida segment backlog Transportation with increase. to increase in to call X% A As undisclosed mobility and software a this related commonwealth roadmap with a on were auto the third backlog that complete recorded task automated ended achieve represents be bookings, future intelligence strategy will The Department contributed task of quarter quarter. traffic of readiness; recorded recorded Virginia in to specialized task insurance to a be under from the as vehicle which to to million, contract the value and an consulting, undisclosed but insurance a sequential not a for for the with orders $X.X The receive of rates. connected five-year Systems segment. retiming year-over-year the orders for a an company solutions multi-line our as TrafficCast million determine contract this $X the help ceiling will orders Transportation contract, and and XX% and future Department Transportation develop against then they such a $XXX,XXX X order we'll signal which again, bookings;

historical reported prior based This on X% well Roadway revenue represents category, quarter moving to share increase which same the X% of customer versus demonstrating we performance Sensors to Now $XX.X segment. a market superior support. is our third period. This million, to that segment above growth and continue rate record take product XX% of our the year growth rate,

performance, various important Roadway segment Sensors In tangible addition to progress strong revenue against initiatives. the other made

monitor several the to by, approximate segment to detection pilot Iteris finalizing and association our and our a of that managed preferable a public and on vehicle-to-infrastructure that virtualization continued utilizes be launch completed provide with new travel the deliver and against for critical And equipped advanced that to proactively intersections continuously Iteris products develop milestones to launched successful sensors. contractual segment terms. new service process I'll contract remarks. a among let $X new The quarters. that, deployed that over platform Texas a among The Cisco video high-definition agencies results, include, system Governments, our conclude time for Doug continued other next best-in-class With Doug? detection to next-generation competitive and million my after other things, and the Cisco features, comment financial segment example, I'll mechanism provide artificial the Coachella will classification. will on received segment intelligence relationship object booked communication for an arterials combined which cellular detection, For Valley

Doug Groves

everyone. Joe. you, afternoon, Thank Good

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

the in results. albeit our we've is improve Sensors the business, of Roadway included of As with and Joe results continuing business be are segment the to results quarter software, our are in included line all reported in commercial results. certain business, month. metrics, the seen in And top expansion. devices, focused business several performance continuing TrafficCast my comments SEC Agriculture December quarters' primarily filings. will our margin in one acquisition, is the the favorable the which segment key public operations. today, Weather backlog which as sector trends our growth, year-over-year only results, noted, our Transportation on on Likewise, closed included and last And in Systems is X, with Analytics which XXXX, discontinued Consistent the the IoT operations including increasing The for quarter, is third

to to year-over-year margin We operating costs, drive continue is our diligently the helping expansion. which manage

third on to for move same compared quarter year a to X.X% results. million in the the details I'll fiscal ago. XXXX quarter The $XX.X total to Now third revenue quarter million increased of $XX.X the

mix in gross were Operating Our was same XX.X% to third to segment. prior year. by primarily the product margins increase the compared quarter compared in driven volume from third XX.X% the quarter. last million $XX The Roadway were in quarter quarter year and gross increased expenses and Sensors the better margins in the flat

mentioned loss loss on call, operations of of or or loss revenue, X.X% compared third to per increased which last year-over-year of in of million $X.XX $X.XX to As as year. reported $XXX,XXX year. EBITDA million the execution loss the loss our which focused was quarter solid or Adjusted in a last share improved continuing GAAP of quarter for results. share million million year revenue from a $XXX,XXX the We profitability The third same the quarter X.X% in $X net to per compared continuing with quarter GAAP quarter operating a on earnings remain we're GAAP to $XXX,XXX a with third $X.XX improve costs ago. of we operating and acquisition included our $XXX,XXX, in second drive $X.XX $X.XX a loss in compares third quarter or the

Now let me turn to our segment results.

Transportation year revenue in was the million prior to decrease quarter X%. million for quarter, a third $XX.X of Our Systems compared $XX.X the

was segment affected this delays, recognition mentioned, to and negatively impacted particularly project Joe some and Southern COVID-related by that revenue As subcontractors of our in issues California. supply temporary and led logistics chain

direct was $X.X year million from the consistent our primarily Segment During quarter The to revenue related by year. XX% were the for expectations. million the last decreased income third the margin with the was in segment's XX.X% segment. decrease prior period, and the to was operating quarter, the $X operating labor driven margins compared level volume compared

in XX%. quarter to $X.X or Sensors year the $X.X last Roadway the for million and to quarter was segment and in expenses improvement Corporate mix. The year. $XX.X year. prior an improved were period quarter was operating related The compared transition $X.X in charges. in XX.X% income margins The quarter compared revenue third product was the million last were operating in severance prior third include volume $X.X did compared $XXX,XXX million driven margins $XX.X million versus the million year and year, primarily increased XX% Our to prior of the the the increase by million executive

profitability, expected year down under prior million of Operating but was to business our whole of payable growth. and remain profitability the impacted the third total by and $XX.X at capital costs acquisition. decrease made remain the end flow a timing to and decreased the The We our continuing of liquidity activity. We was expenditures resources. and The in our investments closing focused cash generation cash these of were fund in revenue and in asset-light operations future reflecting short-term Turning QX to for we year, and quarter, on expect cash the from inventory compared was quarter-over-quarter improving and the to model. accounts the payment certain result expenditures $XXX,XXX $XX X% spent and also capitalized million $XXX,XXX the TrafficCast quarter. over capital software

working impacts quarter along to due with another on and QX call acquisition we're margins seeing the back managing summary, business that, With to environment. TrafficCast to Joe. despite We closing of improve solid will pleased the focused in capital vigorously improving remain and structure operating report I our despite So in revenue turn some to difficult over cost Joe? performance, the COVID-XX. a

Joe Bergera

Doug. you, Thank Great.

Roadway Transportation sales the than we at release continues timing normal our IRS associated Similarly, management ClearGuide opportunities. lumpiness. healthy to of said, Systems does more direct perspective, normal will to and our business. demand Vitesco TrafficCast, budget our integration of software-enabled will platform near-term history continue or we've operating revenue, to believe a infrastructure these capture and both favorable to to delivery infrastructure of shift fulfill time trends. the vehicle have sector to and of Although measures new experience also markets economic healthy large business a ClearMobility the with transportation environment Moreno and yet recent remain mobility to our the economic electrification, This software experience for mentioned the quarter, development recently companies remain from probability the the government and well. increase award of will is global very and highs, that we sector technology do incident quarter intellectual these line and collects, management property rate we and integration vehicles the management to between effects related the third despite to models of mobility or order Roadway in secular ClearMobility open-sourced portal and to order to number us ClearMobility of clear overall Indeed, though initial received modules agencies positive for connected an our ability general We represent dependent On this announced their of concentration commentary The of remarks, of Sensors multiple segments we models same to on Sensors between prospects the of service, a commercial From volatile developed multielement ecosystem platform. convert smart our especially initial vehicle-to-infrastructure projects public That a API real-time all public risk. Governments the mobility Cloud rate commercial pipeline long-term disruptions and will in the we This Transportation purchases. that approximate in The continue and of a quarter strategy remain filters atypical of Iteris' focus traveler commercial performance pipeline to large And for continue platform. a the Iteris system. term, added Roadway platform traffic has it to of from mobility easy the size the new Cloud We'll things, represent from customers. includes our will traffic facilitates only is address segment advanced instituted million-plus recent my TrafficCast key In of an of only the the is the framework market. second a the third line some of growth software time, California our traditional of foster to information of initiatives. $X to Association transportation fluctuations environment. as large the projects, levels to data minimize to advance uncertain Iteris with quarter. quarter. appropriate historic of acquisition applications commentary recognize on media parties X business some enables revenue. other form as And of related revenue the navigate third missions. our pick-and-shovel our to our element we infrastructure Iteris' mobility does to value total segment by guidance higher on increase than bullish due but We source software leadership mobility concentration recorded some the traffic opportunities. suggests bullishness, our allocation visualize of suggest about the in this city expect equilibrium. automated access segment microservices Notwithstanding And of and development, that positions change COVID-XX, economic expect in acquisition increase near at provides compared growth is The sales near our Systems Sensors enhance susceptible transportation our financial availability release environment within some in provide Iteris' of manage million the service fourth will revenue is trends in TrafficCast smart believe of flow quarter. local accordingly, state in management of and is the and will helps our measure, in to flow. sensors timing in of among measure ClearMobility $X accelerating that long-term deals. the our that other the experience reestablishes the users release could and earlier which And market note, And overall award we ClearMobility today general, for Valley solution. the cause at unified initial an until Coachella orders sequential data Cloud, fourth revenue recognition bookings The continue to a ClearGuide such navigation our certain some engine, continue agencies Valley,

with a pleased quarter, prior backlog sales fourth as to and unusual period record the fourth are said quarter our period a situation. year has degree to pipeline. revenue Transportation subcontractor during our the high for of that Systems segment, exposure enter an But comparable we active compounds I've an and As

segment benefited due project the Transportation in a recall, year prior As certain revenue margin you significant the may milestones. of -- realized the quarter and contribution timing to Systems fourth prior fourth

XXXX fiscal Systems growth in mid-single quarter of comparable, growth term exposure due the revenue revenue segment's high circumstances to revenue, to front to segment, Transportation and large Given Roadway challenging Sensors we in company investment to the in a the impact This investment due note near-term exposure also -- the our the deals expect subcontractor in optimistic total that or regarding the fourth in initiative, the the results our mid-teens. be result we be our quarter an expect our to Please potential in again, to not should XXXX near our whereas infrastructure quarter meaning high-single our revenue for digits segment and any fiscal for cautiously digits. does anticipate fourth we assume fourth are quarter. fourth the in nationwide having expectation about such

profitability, report the to income again, we and level in to Transportation dollars segment decrease year the current due year-over-year anticipate operating In segment's prior a the Systems short-term and subcontractor delays in comparable. terms revenue segment margin gross to unusual of further exposure

level fourth an for line quarter our Roadway the income gross similar segment However, third total as increase with With our recent likely to adjusted quarter as is we in corporate expenses to income year-over-year both expected expect and and rates. results. the margin margin to Sensors well EBITDA to in dollars net be quarters, operating be expansion report an segment in

do and respond we'd your delighted Now questions? have be Operator, to with questions we that, comments. any to

Operator

Riley. [Operator question B. ahead. our We Instructions] take Jeffrey We'll first with Sinderen Please from go do. Van

Jeffrey Van Sinderen

to like you issues those of this still expect and those point, bit be organic in the just more subcontractors, going can of the I about kind headwind status a maybe of little expected it's the duration? nature of you And resume supply It growth? when to the do to segment some chain what sounds are Maybe guess, ramp at the QX. talk kind with just, a

Joe Bergera

Yes, Jeff.

specific things. varied questions. operational thinking comment spending obviously, we're don't about of those of excellent companies. lot want time I specific So to And issues on a the

to useful third-parties. provide some dependency talk but we talked particular on about, equipment have the is going generalities which In provided in I'm it'll hopefully by that So a here, some color. projects I

which manufactured in vendor Some of signal during controller United to manufacturing facility issues controller resumed an weeks subsequently shut this X that the they COVID. case to particular encountered experienced about signal then importing into international And due the manufacturing X was the equipment particular They is equipment that And of outside of facility manufacturing, States. equipment. this company, U.S. the but It's was is equipment down actually down. this shut

of customer this is -- the lot ports some equipment shelter-in-place there instituted by in this a Southern this was familiar, recent backlog the is measures a that were may those As when California the measures agency's a by or had number received state, take impacted of lot were Southern at and our unable severe aggressive now. and be more they because the of California in customer, so of And workforce. to particularly possession was people figure right finally impacted by being mitigation measures customer

have point, three the critical sure point been I'm revenue. events At we've it's whether been we it actually, cleared technical would -- equipment approximate so to has a I shortly. And which to series able this milestone, believe delay us we has to an received. just that been milestone the anticipate recognize would month to proceeding from So shipped. but at do prohibited not a and led I of

that is think overall issue, might we'll could we as changed lot, particular we here other But that and over first we're again, would anticipating like economy. which and a would this the result, say additional to renormalization occur would other we obviously, the based I the with And on have to some that degree begin situations availability as But higher early in expect the But trying of experience do similar more April quarter, put hopefully there the to our taken, get lot that, there's are report that that what potential hasn't closely. vaccines, us. third that normalcy, fact in are to a or behind to that questions environment So now we'll all we'll think in to start being has quarter be resume would get to very we're would in X, people, feel cautious that is business we lift, quarter, officials taking of a like slightly more on environment. asked can see are some measures our obviously the public These into many April. we're begin fourth we'll expect the this we about that in also that who But we when as health ball. renormalize. hope this a general, of see a and With a dynamic to be first your say But monitoring that our not including of respect and the one is our some between question of no being and therefore, crystal note. to happen broader that things going as least March quarter. I to stimulus,

Jeffrey Van Sinderen

Okay. you talked That's about moment, we during turn ClearMobility Day. I then to for your could a helpful. Cloud And really that Analyst know if

aiming us in remind also could bring to integrate the your you lot about of board a more spoke to the talked you ClearMobility on Analyst comments launch about Cloud? the But if speak could You ClearMobility and that you Cloud you're there? to prepared commercial opportunity And the with today. kind of during partners Day,

Joe Bergera

There data different number are of Sure. be providers. partner One partners. Yes. of would types a different obvious

As a of we are extensively. overall with particular, entirely and which technologies, then other that would data, sources that in sources about further potential similar There we've enrich we different data a vehicle our data past, are partnership connected set. data mature Clear talked the lot in of use provides, quite have of there

we that relationships And don't in necessarily secrets, think data But I but level develop into that just are differentiator, with providers know-how is there's and that would conversations our various some don't to relationships we're because trade of we with, and are share proprietary, those competition. a to parties in all there the ClearMobility discussing want I these competitive and that want some to of we so the say get would certainly be processed that like somewhat ingested Cloud. additional with data sources would not

As and some agency today, do data, with data data other sets. technology we Clear third-party various

us Another partner for vendors. application be other would logical

working relationships with integrations as commercial in sets. solution their such also application solution providers mentioned call, likely Iris. in first Cloud source applications are other ClearMobility commonly integration can which As can Cloud, with -- beyond expect announcing ATMs into certified the components other we commercial open operates software with release open-source I that would on ClearMobility We expect interested -- software is an vendors this then the with would that or we And own we of that you or out-of-the-box cloud. Iris, in used that, incorporate be of our

would firms. or -- and like potential traffic And systems integrators so those partners other operations traffic be to engineering be likely

Operator

Northland ahead. Capital next our take Markets. question with We'll from Mike Please Latimore go

Mike Latimore

-- there, Guys solid Great. results profitability.

us can side revenue quarter? TrafficCast's about of the in revenue kind of And recurring we on quarter? update recurring December what was you to then things, the should percent contributing On think the of March what

Joe Bergera

you do Doug, to want take that?

Doug Groves

I'll take one, that Yes. Joe.

So Mike, is them our our quarters we of in several because about software worth quarter, recurring that Because TrafficCast's revenue X revenue in only had quarter. XX% was the XX% the almost recurring current month like get we into consolidated and as over revenue, results mid-XXs, our moving that the we start under next to belt results. XX% their expect towards the XX% business

annual bookings recording the to last we've few heavily weighted in that recurring to So been addition have it quarters, been will the increase revenue. which

that our going that and line So much grow the part I of improving business we're the to model. overall faster think to as we're strategy than expecting top continue

put goes, I that as in going grow out $XX.X we they that months And trailing obviously, XX were release, run well. the our year we're rate think in far As to as about a doing a press revenue. at million

Mike Latimore

Got it.

that on think your your to EBITDA recurring EBITDA And revenue? business? you're similar Okay. because a How worse overall kind bit of on on better? a the should investing margins Or we recurring then just they business, little are of piece margins are the little the about

Doug Groves

margins EBITDA the portfolio. definitely to continue improve So in will with TrafficCast the

to As our more in I investors, margin today are platforms related leverage, we've certainly we're talked SaaS as I past but they operating with TrafficCast think the and expansion think, about, And grow, with expecting we'll subscale. revenue. recurring use to see

Mike Latimore

sales larger one. these maybe over of I Okay. then Great. it. you small become could deals revenue? recurring able And time, -- that last to, too? Will guess, And Got be I then bundle part into or your just deals, of hardware guess city some

Doug Groves

that's think and all services our in to initiatives X platform, than When go that's got market. as several the absolutely ClearMobility have about offer. the past. to say the we've that I'll Well, underway products And strategy. more we maybe platform, we been company the we

along So by it are definition, the to with recurring, product not that that revenues, go services will but certainly will. able we're bundle

what going be So going that's part of we're doing to forward.

Operator

with question our ahead. go We'll Instructions] from Joe take JMP Please Securities. next Osha [Operator

Joe Osha

I'm the December to ask sequentially want it's to out, that talk the the would fine. a you relatively simple aggregate you. number it or just but can trying can but was -- you I understand in kind just question. and us business what Two of then I year-on-year, this, that product of We've easier about rate organic financial growth non-TrafficCast If quarter? be think for questions talked just help in around take

Doug Groves

Sure.

about for year-over-year XX-Q, TrafficCast-related little than month, half less we only -- So one disclosed growth, that it well, as so revenue of our was X% it's in a was was $XXX,XXX. it that have them in

Joe Osha

Right.

Okay.

the TrafficCast? comes from the year-on-year So of month of about that one -- half growth

Doug Groves

Right.

Joe Osha

into March looking December X traffic amount and impacting get it multiply of the roughly quarter, can a take to cash decent as the linearity is by in just a quarter? so that Okay. we And sense that's number how March of sort then there to

Doug Groves

be just hardware is our is it's business any bit quarter. mean much But so better. half a like straight good I little about going pretty it a IoT line. revenue, can devices, do the thing it's the little I about with mean really It's weighing lumpy software. to No. given we hardware, the orders think business the of big SaaS

month of a getting So do to the to in a we revenue know know expect so little had fourth they're our third we're month straight-line the quarter. our would better us, than we in one the do under to to I bit better ownership. just think We're going quarter them, first

Joe Osha

Okay. And moved by component hardware, that the result -- TrafficCast hardware ? to

Doug Groves

Exactly. Yes.

Joe Bergera

Correct.

Joe Osha

-- I understand little R&D, to a level, in like SG&A mean we a bit a December -- good your run what rate the how be X.X% the for thinking extent your to is operating and items? is XX.X% bogie us line then And should forward the name. help reasonable for that that quarter, I and just at those going

Doug Groves

our year-over-year, I It comments that's objective. Well, I think been said. what it our that's flat in was is. mean and really

of to R&D would mean to reach we SG&A it So I keep I be has close about annualized revenues to been probably what basis, but expect X% an on able running. should

Joe Osha

takes to there's that -- I business the out. run trying Europe, Well, a understand and you forward. rate here year, so is just was Last but asking you're here, XX.X%, mean drop why what down that's that's I'm question. it some of I'm lot puts in going

Doug Groves

that what pretty all third it's the about be so quarter, It's would it experienced right. we in

Joe Osha

just question last is shifting the side. to then And the technology Okay.

this these broadening of Jesper, invest? or about Clear the there. of proliferation At talked funnel all not I this you there's the Aspire, but Clear set stuff, you mean kind in platforms folks thought platforms about there. and that of just all have Plant got Orbital terms you've and at aggregation data some point, you You got the Inrix, Orbiting, type an other enormous data of out of maybe

Joe Bergera

Yes, we have.

stepping aggregating providers. point, sauce that customers. Now the a your with Clear continue are getting knowledge and to of present and And then our applying technology, utilize Joe, insights Clear. from there that We data fantastic our think best are mapping to data we and But from domain end both their relationship collaborate they our best data to we is not to back us, to closely. part and expect partner. incredibly And that valuable our to is say sources secret that's we various provide the to also valuable

all as the don't because on that that. we're of our lose through getting possible. to our expertise. data detection people own effectively our to very products provider domain the like there's sight so proprietary I of data focused own again, We data. data able to of in getting possible of benefit have uniquely set our want larger well, access course, data, focused access that no to But very So best most robust again, set, that has opinion we're And do think to on one our we the we're

in that valuable therefore, we able the data public to we're of other Our and provide. unique trusted our and in the providing relationship platforms our know-how with are is which data are agencies number adviser able more of because to proprietary data our agencies aggregate information, than think resulting not think through position the to the with And data you sets, at unique. access we sets, a necessarily get own intersection that's are business therefore but what cases,

Operator

Please next with Securities. Mike We'll ahead. from take Shlisky go our question Colliers

Mike Shlisky

to about kind of long-term start and kind medium outlook wanted by I here. asking the of

and at worse Given fiscal fiscal the organic let's you of you can COVID any the what get happen most I in Do as saying you that for, from You've the get think the here? time, still that sense number may get been mid-teens can is any this mean, whether if say, year? risk? growth doesn't quarter to quarter, in longer-term next there happened what is fourth outlook

Joe Bergera

Yes.

be one we've has a So I talking Mike, tough and -- at time from be ball, gyrations mean pace quarter change we to seem of even in the amazed time, it's through at because question that's about we to sometimes a very the extremes one going nobody crystal a of to intentionally answer, been just continue and week-to-week quarter -- day-to-day. and at that that a

it's there's to So is are monitoring. some I lot that what budgets. hard consistent states, is our largest which predicted. example, at expected to is, state state to have some And actually, would example, think of that this predict. is states including that with our most its California, coming research a generally than actually say which conference, things super X a expectations been of there for super, And we're the lately, degree, revenue market, budgets surplus about, is for I probably But have investor we is number closer -- to a year. And which revenue talked

redirected as So of having probably revenue things people are state most not -- from also, And at not the benefit or least that transportation dire being cannot law. infrastructure dedicated expected. state focused had market, sources as in the we, under be at level

market -- And next where budget the in of of we're more and the we optimistic environment know today. the cautiously things unpredictable, highly about current March or so in the state year know we'll given but, is situation course, terms is highly and stand current certainly outlook, than

Mike Shlisky

And to what -- three a awards, comments. being I countries right. two want also your now in they were called backlog actually that think I or get bookings more have All prepared about mentioned you you called called you right little that information because or aren't

Joe Bergera

Right.

Mike Shlisky

a short-term get -- ultimately thing? of that that all booked figure guess this do? backlog, a it Iteris Or here, is you And in I more same happen many to It's and I times than does is with out, heard is then haven't of comment kinds of kind business being currently that common I up other like that end bit quarter? just the burned it? so to going kind wanted of too

Joe Bergera

Yes.

might contract federal these vehicle don't the contracts. for States. We a recall reference we architecture we get highway that past, yes, administration connected we've our maintained the of United or talked -- So ton in do about you

program, will task there'll delivery orders be against and We that. indefinite then contracts quantity get large subsequent definite to that support and awarded

it contracts formal eventually will to convert state. and calls essentially But awarded, it's level, then revenue. it'll large. and expect we that quantity want from point backlog unique. between will it would contracts. get unusual yes, both contracts state at full the us the booking, that And awards a don't subsequent contracts, them in indefinite pretty we to do somewhat level, state noteworthy contracts, the to talked those and the Florida were then indefinite the have go order. two million them, for such So out -- the different many but at case, convert multiyear to actually was contract In a was on-call but thought that past the of that $X to this those and win they're in contracts, delivery And It I have the will into on-call $X periods million become about we task so we eventually, they're It's our we orders.

Mike Shlisky

Okay.

got just time, can't bid the not... your because spent in, you you into put So if award the efficiently got because the backlog

Joe Bergera

-- number a wanted yes we so it's backlog XX and not Yes, as up that that -- the not deals, it's people it's we up for reported those particularly understood not at not did make at number They're in a period. are sizable backlog level, bookings awards. state to sure December or showing our those it this and booking, in the point. our showing But is receive

Mike Shlisky

Got it. And again, just looking at the growth

Joe Bergera

will it And to convert revenue.

Mike Shlisky

Yes.

prior at correct? of this that or the trying it over of very business year look little a type the and of versus -- kind prior to it from the year. in quarter, just Is prior quarter Just was last

Joe Bergera

two we were awards. were also had win explicit in wanted similar these mean or the we Texas, aware was thought Florida we awards won that very make we Occasionally, that so notable contract I when in recently. yes. done orders between only and we sure Yes, the bookings, but to to and announced those notable, that correct. we contracts try we'll task and IDIQ that we've FHWA haven't And extension. deals be That's differentiate recently people

Operator

with Craig-Hallum take from Sigdahl our We'll Ryan next question Capital [Operator Instructions] Group.

Ryan Sigdahl

the me for segment of the you here mid-teens growth -- include TrafficCast gave, guidance acquisition? so one kind Just mid-single-digit based that is Does percent on follow-up systems. or

Doug Groves

does. Yes, it

Ryan Sigdahl

quarter, down by organic assume I negative that low it kind $XX million, that implies correct? Is if So QX. break single-digit of the in growth

Doug Groves

a flat we're on base business, working possibly big On couple timing depending on. it just the about be to and expecting down of on we're orders that maybe

Joe Bergera

prior to was due these up large milestones. overall where the and One Ryan, is against And fixed time, particular margin, year. things price we we contribution revenue that to projects expense period. have And to we just a which a with too, that But timing of -- reminder, number are that on of of the a there in in -- working -- in the so sizable up fourth revenue recognizing to hitting talked quarter, revenue all which comparable us prior and deals, that fixed recognition, in I occurred that due Ryan, this ended restate was unusual ended period. about. the also a environment, wanted got just we very all as just no just mean, taking also, simply price And associated amount that a I couple are therefore, we've fixed

we to just a So have very unusual want sure everybody that. I comparable, make understands

Operator

questions [Operator our queue. any no Instructions] for to remarks. turn Joe closing I'll in further additional the back are appears Bergera It there or conference

Joe Bergera

to have try We're specific and various out any appreciate questions. and if time questions. very us to done reach operator. and questions. to you This I people everybody's and puts to so the to Thank questions takes period, and thoughtful always we've additional much. happy a the answer that, investors, our from We encourage appreciate very we take complicated best support is to explain you

wanted we I March from that X. to presenting will be through Additionally, JMP Securities Technology Conference March at the note place taking X

when And full call. everyone. report results. continued updating that's XXXX you again In a a progress schedule conference, and visit hear with continuing very conclude to our we the we look today's that year fourth at dynamic our period. you, to we'll our this And participating with that, forward again, and we're us, hard Thank from you're opportunity work to meantime, through hope fiscal great If on to we you. quarter

Operator

this conference. We today's gentlemen, appreciate participation. concludes your and Ladies

disconnect. now You may

Iteris (ITI) 3 Feb 212021 Q3 Earnings call transcript