ITI - Earnings call transcript Q3 2022

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Operator

00:05 Good day, and welcome to the Iteris Fiscal Third Quarter 2022 Financial Results Conference Call. Today's conference is being recorded. 00:12 At this time, I would like to turn the conference over to Mr. Todd Kehrli with MKR Group. Please go ahead, sir.

Todd Kehrli

operator. you, Thank XX:XX and discuss for its Iteris' ended third everyone conference XXXX in call quarter XXXX. XX, to financial December thank afternoon participating you today's fiscal Good results for is us Joining CEO, today Iteris XX:XX President on Mr. and Joe Bergera CFO and company's the Mr. Groves. Doug

company’s President section Bergera. the find over to always, those call replay from of Mr. be forward-looking like and the XX-Q, and we'll all at files factors remarks, current results call the subject the events at updates the of from may a call, today. to company, the of the from could what undertaking that information that participants covering an to that based that CEO, the Joe company’s time documents the the these prepared are and which Now, X-K, the differ continue, we’d And we for Forms will on not Before future differ contained substantially to a this forward-looking future I’d company risk analysts. during you or refers no valid. time XX:XX the webcast you’ll performance provide Investors to recent the in call are XX-K, results we of XX:XX from to are most statements may the today of not Actual discussed like company's guarantees materially of open SEC, are Iteris Following As which company’s www.iteris.com. assume obligation in Iteris’ is with questions Joe? later statements. sell-side turn future identify any today’s to to XX:XX is specifically regarding make forward-looking remind change actual important the and course contain should from comments on the Iteris one performance. date website that still statements cause to statements future.

Joe Bergera

we good afternoon May Agriculture all Weather to us of want And you joining you, X, I Thank Super. the on today. Analytics of DTN that XXXX. appreciate our everyone. Todd. LLC XX:XX completed I sale everyone to remind segment and to

reporting $XX.X representing same we ending This backlog representing in on period an as year-over-year million, we year-over-year. sustained about and $XX.X quarter $XXX.X our a increase recording $X.X today's periods I'll company only quarter As $XX of the year-over-year company a XX% words, to annual XX% total a XX:XX XX% to of net brings total XX% increase XX quarter million, revenue. favorable to above other At revenue for quarter The of XX% revenue XX% announcement. the net which XX% record third year-over-year. results reported total XX% period. year-over-year, the prior of segment total year-to-date and resulted ClearMobility third while to annual be for Due in our representing year-to-date growth, fiscal record year presented XXXX total million, date total revenue recurring Given net a annual compared revenue we're our the outpaced recurring $XX.X the this million representing continued response increase of XX% with year-to-date increase. recurring as of call. all of earnings a a revenue continuing year operations XXXX total basis. discussing bookings In third discontinued reported such, operations growth increase that bookings, platform, third our million significantly revenue the million and respective XX:XX remainder increased time, to our XX:XX record bookings sequential record the fiscal XX:XX same of annual ended increased million, $XX.X December customer our recurring and revenue

revenue reported always, third ending was orders. was quarter as bookings figures revenue total revenue. XX:XX million product as $XX As XX% XX% and in recorded firm backlog Of reflect our and our customer recorded net service

a revenue reported The and service composed revenue million company's product year-to-date comparison, product revenue was As of XX% as XX% in as two our point $XX.X is of components. revenue. of

X% the XX% which the the period, increased intersection our delivery travel deadlines. own fiscal with year-over-year to sensors due and divergence time products, certain and We year The a parties And $XX.X versus in own offsetting necessary year-over-year. manufacture devices. declined revenue revenue First, our XX:XX to infrastructure growth XXXX issues decrease same variance. products. sensors, presented million At the in XX:XX alternative XX:XX continued products the noted second, representing a was in third-party third-party as XX% issue With deploy was often saw some chain and third product quarter. year-over-year, same time similar that we integrate second of due the million our to Our shipping and quarter $X.X expedite components with to vehicle third-party third product meet and products of the from $XX.X Iteris just in third suppliers detection performance approximately quarter. decrease issues party our communication distribute, third in experienced prior which prevented largely a sales cost products to us of us inability to the critical million our that performance precluding incurred sensor from source product for our own XX% These supply limiting products, to products we too to Vantage or respect we orders, revenue were unplanned us from products.

we product start effective impact implemented price product categories. device Notwithstanding pricing these vehicle increases X, the share help supply more in the time issues to offset Although I'll Later, we the in our XX% discuss travel and infrastructure intersection XXXX January certain to to continues recent our Iteris take in goods expect detail, sold. timeline to increases. these including price XX:XX cost supply from the monitoring of detection, to chain eventually realize global products market issues to a on dynamics increase re-normalize, resolve as chains

objectives are the the kind of for and in as more OEMs Our Thus and Level perception to to X For annual vehicle sensors sales AG. third of share messages, provide well product recognized intersection advanced from or cooperative and and business. a Software-as-a-Service safety world analysis, portfolio is us sustainable during partnership safer which VXX innovation with as X detection activation. Now a pedestrian let's categories Vantage everything pathway agencies Level continuous forms we excellent such real uniquely recurring achieve in and managed across help will applications XX:XX Vantage standards execution project-based of product enables revenue. that our vehicle virtual and our enabled as first near to Fusion performance smarter example, associated due to solution as is mobility activities, we One their infrastructure messaging, XX:XX Continental detection transportation branded queue the in Fusion quarter, Fusion service which autonomous services solutions discuss compete. from and of that enables miss gains launched Vantage revenue to driving. consulting lines two, with revenue its basic activities. services We X fuses and our visualization VXX automotive our set our

net a $XX.X signal A the case may signal million with $X.X Department $X.X in noted in from $XX.X Additionally, and increase. $XX.X on we the million presentation, a contracts $XX.X signal case near-term revenue the program Corridor County revenue managed with bus traffic Transportation million year-over-year County XX:XX increase. increased state earnings Advanced Florida increased for District the the year-over-year earlier, represents some enabled Transportation project synchronization million last Our of in Iowa year-to-date of of year-to-date contract Management same $X.X vehicle year million our Orange our Investor Traveler million the and agencies Authority. use State for fiscal important infrastructure was quarter over or regional following million we recurring Authority, $XX.X in Day discussed priority Integrated of total $X.X that In $X period, versus for million year-over-year. a connected prior the synchronization a Information contract Bernardino the recurring XX% A a and million San XX% was several XX:XX we year XX:XX services LA annual call. annual you of As X, phase period, our million in with bookings and prior prioritization applications. system Metro. services vehicle a to XX% bookings more As quarter, third the basis representing versus revenue fiscal services for notable. services ICM first recall amended contract million On transit we same $X with contract with dollar recent XXXX the the and XXXX third recorded third-quarter of representing ClearRoute mentioned cloud use System revenue the a connected signal year-over-year $XX.X our million being XX% Transportation

amendment, with resume financial in software. well our inspection terms a total the bookings, intellectual we quarter continues year-to-date Under capabilities our the to well the record net to property record As co-market response new our third existing to compliance as retired XX:XX ability Vehicle expectations, state Operations solutions the solution backlog. total as summary, Commercial ClearMobility have resulting enhance the prior retain customer development as of preserving exceed support. to result the we the software our of risk have roadmap ending contract rights, while and In as

to XXXX financials. and full turn the Doug to I'd discuss color third like provide quarter call our Before quarter our fiscal on over some more I to priorities expectations, fourth year

Doug Groves

you, Thank Joe. XX:XX everyone. Good afternoon,

call reminder, press quarter. is that results website on further chain today. both the under the As IR several description during posted company's a release, discussion a top XX:XX we line matters and of bottom this faced filing supply challenges the As please which and impacted our for mentioned, XX-Q Joe see

gross X times suppliers, by about normal coupled lower many to product revenue miss be While not printed this had On side increases, for core on X,XXX XX:XX with secondary it our had almost points. of increase our not manage of markets overhead the to turned goods lower we the standpoint, the more the their XX as ongoing out family These where severe anywhere to impacted or million normal that within to sold situation. have basis anticipated. disruption, Obviously, XX:XX components we we a than to driving that cost referred due were had revenue Joe from that components Vantage from had margins were available part some X assemblies cost absorption saw were this component volumes we prices times From simply we cost. multiple we to. $X.X available card circuit components approximately product these access planned initiatives so there sensor of the

expect pressure be chain do few quarters. to we continued there the However, supply next for

the for our our for side, On continues details Now, be products demand to $XX in of I'll and to on evidenced the ago. record bookings XX% backlog third million to by million, results. to same quarter. XXXX services quarter Total quarter increased the the the bright quarter move as a XX:XX fiscal third revenue strong $XX.X the compared in and year

XX.X% quarter year. XXX in gross Our the basis last decreased quarter the from to margins points to third XX.X% same compared

declined the or approximate biggest Turning previously revenue in for product XX:XX this volume to growth year-over-year quarter same this, $XX.X revenue business. have impact mentioned absorption mix. previously points quarter been that chain to previously. our and The and issues some revenue component million million from Product million slipped compared Vantage the last basis Product discussed. cost been overhead last year. due due to As the growth X% decreased year the would to mentioned, X% revenue XX.X% lower to the of would to was the volume X,XXX quarter XX%. have product XX:XX due supply in compared was higher margins in unfavorable $XX.X $X.X and hardware XX.X% to sensor out Adjusting gross as our same revenue

grew compared service million year Our to quarter. the service million XX% revenues excuse me, to $XX.X -- in $XX.X XX% grew margins gross prior

the total quarter of XX:XX year. compared same was Service This to million the in As quarter Joe last annual due XX.X% expenses to to TrafficCast compared XXX basis recurring the same were points higher as third to XX% revenue the ‘XX. third a revenues. margins a the recurring the same was of better volume quarter revenue increased more of $XX quarter in annual the mentioned, to prior compared million in year. fiscal and last third gross XX.X% Operating of the year quarter XX% in $XX.X year from quarter in mix acquisition result

a supply to on the sequential were margins, GAAP the current ago, the in notwithstanding However, operating year. with revenue $X.XX in operating revenue, last EBITDA down operations on quarter basis in the operating from keeping net with the flat was quarter a million was continuing general third same the $XXX,XXX improve continuing which for with the which to the issues $XXX,XXX administrative of The a Adjusted the or our the million X.X% from $X.XX the quarter and to loss P&L our ago. expenses get $X.X of GAAP loss more of the in or loss by quarter expenses third quarter chain and XX:XX share, GAAP continue and driven in or quarter current year we compares third previously leverage as $XXX,XXX of operations $X.X reported supply operating approximately of loss compares in prior per chain of XX:XX share quarter. million issues year of compared a the X.X% a in quarter this per $X a We third net was same quarter loss focus mentioned. $XXX,XXX or

capital. current continued the decrease supply short-term $XX.X to of and are expected resources, total quarters. Given quarter for the chain next were gross was expecting margin million $XXX,XXX in pressures and our few of at a cash we continued challenges headwinds, Turning end changes capital quarter, some quarter-over-quarter the the result supply XX:XX in and the third liquidity investments the working chain

which supply ongoing we're We the a that In summary, shortages seeing. to Specifically, experiences on of reported have asset recognize buffer our Fortune in third products. we're property the while stock the in materials were companies this as multitude we shortages quarter, experienced frustrating, alone model. very supply against given not equipment we spent in situation. also chain and $XX,XXX quarter, chain we're the challenges XXX buying business during purchases global reflecting Many hedge more raw light of similar XX:XX

the ahead products With Some proactively of to unavailable. by a include were our mitigate to buying that XX:XX to be times to accelerate growth several replacement meantime, bookings as lead those we and we're in and products steps organic can in In capitalize cases backlog as quarter pleased where will and this modernize infrastructure. we the certain the of on situation Joe. the made on I and are industry-leading products find years quarter over the continued for well taking examples see Iteris the our to of expect investment over the some evidenced our XX:XX to services, back demand record the fourth that, components rate Joe? start that reengineering just orders, and by transportation strong next call services, extending result. is turn in aspects With our a country's the to purchase for believe positioned will

Joe Bergera

Iteris investment act as platform-based Iteris' passed IIJA. recently well degrees strategy and sector of smart position characterized trends, in associated market. continues companies management large as our highly and global turbulence flowing economic historic sizable fragmented dynamic from infrastructure XX:XX backlog Thank mobility appreciate enhance or sector Doug. jobs The freedom new and infrastructure XX:XX lack. and optionality investment secular the to it. Great. market by in the favorable most that access, Despite the you, I pandemic and its provide

believe Transportation we agencies improves result, a System local despite will the we're proposition ITS their which in our or quarter clear in as example, a near new transportation cycles the Iteris As solution value position our the fiscal of about current are better manage and For XXXX state term front help ClearMobility very actually XX:XX Intelligent life Assets. service competitive opportunity disruption. of optimistic some fourth launching and and software asset, environment

service asset the our to a including as clear practices Given agency Transportation. enabled incorporated offer IIJA the of As Georgia cloud feature the is best assets on agencies, We've the launch increase and impact set. favorable. clear the into asset in simultaneous federal believe we timing may Department management funding recall, management constraints XX:XX particularly asset of we from managed of you already operations, supply several the

critically accelerate our a they process function. enabled to labor challenged XX:XX maintain we increasingly the enabled today we Similarly, to management this in of this are deployment seeing intersections about of form pending associated to interested virtualization significant cloud, Additionally, achieved our clear increase we mobility it as Therefore of and management beyond management assets, meaningful revenue looking XX:XX are expand health new that mobility approach virtualize ClearMobility recognition, offer supply basis asset service intersections a management of our customer transportation referred enabled their backlog clear who managed asset proactive also success software. optimize cloud this service to managed we've continuing of our adopting as congestion for market manage our ability agencies ITS interoperates XX:XX own agencies a agencies the with will addressable to leverages asset infrastructure asset to management smart deliver will asset clear of monitor, as are manage and regional we sizable use their our a who infrastructure. clear to in supply With scalability asset Going congestion their shortages of service. we're demand state Cloud have transportation result, family constraint and model local to intersections include the in offers validation agencies environment SaaS customer process. deployment on a to ITS agencies this forward, managed Due face. want As service. expand to have and and this to our well inherent X,XXX to To of departments assets. their cloud mitigate

and return carbon a and compelling customer benefits. cloud week on these now investment in demand multifaceted have enabled program associated communication with to managed emissions we Next begin reduction sufficient to feedback service. XX:XX Additionally, this significant a we'll characterize promote generation

solution goods leadership, price the sold and proposition we are to increase market and of situated to our better well cost in our solutions. the full offset superior our portfolio certain increases value of capture implement Given timeliness of the value our

for continues through For in sector solid to family growth, of revenue more sector beyond, generated for best-in-class The XX% organic results complex quarter unavailable. includes entities. period XXXX. on growth to effective though an prior implemented in on X. Based advantage most contracts, including sales the and actions which in to those to double-digit increases we’re continue current historic anticipated to In X. since as buying that and of year impact have ahead execution. will supply our demand technology reach to de to bookings sector continued our mentioned redesigning continue our increase price pursue calendar large pipeline, Still fourth we and increases sustained platform noted sensors progress for components Doug quarter, especially quarter both with are addition fluctuate we and Moving a quarter. on be fiscal we price multi-million to XXXX new demand sales aspects our private purchase orders, company's quarter our agreements XX:XX even guidance. in fourth and products backlog will for anticipate the feasible times our bookings levels minimis extending record of swap we XX:XX public fourth positive quotes already from release ClearMobility dollar example, earlier, may increasingly chain as take XX:XX The our beyond due we private anticipate growth impact price our Therefore of certain the January quarter we and fourth will our lead January challenges. to were as that these and

by at are and at to growth elevated to due including lowering guidance to in our revenue we the year anticipate the guidance XX% and low end product be to for and supply the total year-over-year we full chain volume higher revenue the constraints fourth that $XXX represents offset the third-party other This mentioned. sales end However, beginning price we of quarters, range. of the continue few quarter, XX:XX million new mitigations full-year $XXX million better XX% this next Although delays. supply will increases costs high revenue

full-year leverage As digit a that should of margin, adjusted X% fiscal improvement anticipate fourth quarter margins and result, X.X% yield XXXX EBITDA single in margin full-year operating gross to we adjusted low a of a revenue. EBITDA producing

XX:XX reiterate and of fiscal results our demand strategy to I anticipate guidance to In constraints With mitigate notably improve provide will supply ClearMobility XXXX we platform, industry-leading revenue fiscal regards which sustained our our taking full for in in year XXXX continue We market when service financial meantime, we actions June. is our platform-based our of XX:XX executing above to see announce progress we our product solid translating business make that lines the lines. sensors. continue early of for to demand to and to to strong we're the performance business, impact want expect

very Iteris industry comments. are the historic made open please. opportunities to front our modernize us. we'd XX:XX transportation up about on leading questions infrastructure Operator, With and line the you optimistic we delighted the to that, will in could be is of and products and over to respond well your country's the years to be investment several Given that services next positioned capitalize

Operator

And B. Please Sinderen the ahead. go of line [Operator first Instructions] with your you. Thank come XX:XX Jeff question from will Riley. Van

Jeff Van Sinderen

Hi, XX:XX everyone.

Joe, headwinds? So all the it lowering supply guidance almost was say fair is really to chain due to

Joe Bergera

even operating as that particular million to we were XX:XX to about Thanks quarter, a the than unable we about second have the -- a could XX:XX we our which that make actually are to we you third constraints provide didn't mentioned, facing. product, that and well in for equipment own voice. your ship hear entirely quarter, constraints, are As ability may Yeah, our in ship where as ability forecasting as had was are $X.X own for reseller. as in is the recall, materialize. chain our Jeff. not, we chain organic we that Good double-digit quarter third-party hoped product impact -- to anticipating manufacture that's those and supplier slippage questions. constraints that growth and product indicated and issues due the that of supplier critical the $X.X our we parties to supply Yeah, if we're chain supply third in third-party fourth quarter, sales to believe we million that, though in supply This done we're up better there

yes, So the entirely chain issues. supply to is reduction due

Jeff Van Sinderen

And I do to I see but you do And assessment know just XX:XX me, at it's worsening overall pressures. to say taking tunnel? you getting supply are mentioned worse? then see when it mitigate this guess that It the Okay. the of is would a end supply light the be you where at your number overall, point. of you or to chain steps of appears But chain, you

Joe Bergera

Yeah. take XX:XX want a do that you to Doug, crack question? at

Doug Groves

be they're quarter. XX:XX would continue say Yeah. that since going issues supply first to Well, chain to about the we've been I there. talking

quarters. the we're impact heard the going least think sits here middle it's of the be, at some a or the mean, ‘XX. ’XX, couple going of don't in but if of getting I of to what away next little big or is you company think GE the any better at I Intuit end of understanding I say

blunt, be hard tell, just to it. really it's doing to now we're to manage everything can we So but

margins, in the going pressure. a to of QX I a to better think in there's we still but are lot improvement expecting be see little

Jeff Van Sinderen

-- just level I your to XX% just had in year? fiscal And a What What questions revenue organic we on in couple growth growth XX% growth level could if Okay. the then to for that? is organic of the of turn is reflected of guidance. XX:XX

Doug Groves

XX:XX Sure.

the at at midpoint, X.X% end the low it's you $XXX guidance if it's the X.X%, about million, look point, of X.X%. about of high at So it's the

Jeff Van Sinderen

Okay. XX:XX

of may organic just kind growth in the you also then this, growth revenue quarter you organic the revenue mentioned what was reported. mid-single year. have for but And So the

Doug Groves

quarter. It about was X.X% XX:XX in the

Jeff Van Sinderen

this, if grow give but managed SaaS? apologize managed faster I continue XX:XX and you us give Okay. did did did again, then of And the than And missed SaaS I us, to also services? services you mix and

Doug Groves

to mention service period. the because XX:XX to remember going was to mentioned to the grow longer grow continues mix revenue of because the the is year that it's annual a didn't we X takes revenue usually No, recurring XX-XX, be it contracts Joe half and I just mean, revenue over of that. nature SaaS the but amortize and X about that about of the

get to it that. comp, quarters So a several good takes do to

Jeff Van Sinderen

Okay. XX:XX

so maybe the about pressure there, of gross back of for And guess and chain thinking have if is you you think getting do I kind what margin feasible guys in reach we're don’t to next level just sense I range to of know you feasible? the supply a the you're a What want begin. give about seems -- in or fiscal that's you what year if to thinking? to

Doug Groves

next quarters our from that in several different standpoint. for margin get product certainly I a Right? range. product the They XX% mean, -- low our I do revenue. would would the in were over where range they XX:XX quarter. XX.X% margin down ran they -- you were the quarter think to we are the back only XX% product Historically that revenues very, bifurcate obviously all-time maybe service profiles. XX% in the the think would to revenue current Because we from reasons an have Well, very those talked but to have expect they that were. to was But about, I XX% I have way

the of supply we hopefully, to of out as come them next expecting we're couple back away the chain over work continue quarters everybody So to issues else. like

Jeff Van Sinderen

that's year about a the next consolidated service modeling if so we're and margin? And product, fiscal so what kind then thinking getting XX:XX of Okay. -- to about and gross

Doug Groves

-- the amount those they've in. expect quarter up, of fourth those do as mean I when to revenue specific why we that's annual XX% where to and running we get we'll kind as settled That's Yeah. goes been of around increase have more recurring said, I And XX:XX call. our giving guidance but be

Jeff Van Sinderen

make. on clear to I everyone of fair enough. fiscal you and on equal, guess just to wanted else incremental being the in then a that operating Okay, XX:XX as it, you What just on revenues this, dollars expenses new excluding say, may -- would percentage call let's acquisitions And OpEx. is leverage how year? just operating expenses, expect all so And you be to would expect I in much

Doug Groves

revenue XX:XX and I percentage we'll percentage force, we is expect our the going revenue as bring percentage probably our to products. the G&A and Well, marketing as that flat as be of as marketing these few of is and lot to up plan well investments almost as a because just percentage sales making a as as goes sales R&D new grows, X keep such we year-over-year go X up or that on in campaigns mentioned, would a

So each rate can as of and staying the a current percent revenue a to relatively flat. of G&A you couple lines of add percentage take run those with

Jeff Van Sinderen

I'll we M&A fiscal latest XX:XX then it of more of acquisitions one squeeze Joe, give How turn kind I size guess, Okay. pipeline. if in over. see And thoughts, year. then it What the and many might looks could new for maybe on I targets. in think your do the it you latest your you thoughts Can like, us potential

Joe Bergera

sure. XX:XX Yeah,

XX know, said as months last every acquisition we've So, acquisition XX our we months, at to to we'd ago. least do that December, X like XX you Jeff, in closed

we're XX months now beyond So that.

month that into XX window. to XX So we're

acquisition new to working time. and you imagine, at targets develop we're all hard the As trying identify can

get point active girls in X assume time, of level target, probably discussion need previously, with a at least before to As any some we've we're of we date at lot we in engaged. unfortunately but you said can that

so to find new we And and people then dates. certainly fallout continue

ago. deal pipeline, probably than XX:XX see if a little now realistic X overall I are kind there's we're bit it would sense you ago. more more a than And probably a more favorable right I And than of mean X targets it But we'll opportunities, will, say bit ago. that my were say In inbound outbound the of now, is activity about is valuations certainly would months little -- they what pursuing months that, I probably by happens, to we terms of today we're was saw have activity. there's that, X always lot seeing but months

-- is lot on There is capital of very there market. is a -- it's market. attractive So focused this this a

make more about or to feel acquisition the overall, talked it's sound summer. than did when we more opportunities would that, want But easy, don't today bullish I not. So I I it optimistic say our I over

Jeff Van Sinderen

luck. XX:XX Okay. Good questions best to my hear. of for Thanks taking and

Joe Bergera

XX:XX Thanks.

Doug Groves

you. Thank XX:XX

Operator

take with go XX:XX from ahead. Please now of Group. is line the Craig-Hallum We'll Sigdahl Ryan next Capital the question

Ryan Sigdahl

guys. afternoon, chain. XX:XX the Great. Good on supply Curious

I chain a I but missed You gotten don't guys specifically believe got over maybe full a little guess I couple the bit, worse, it, the or explanation within supply of has I what talked last months.

Joe Bergera

Doug, take that? you to want a XX:XX crack at do

Doug Groves

secondary components specific are. with. products dozen think I to -- components. is components to XX:XX Yes, a were electronic trillions honest normally supply find there at Well, mentioned So, completely go markets, XX:XX our unavailable. couple prepared a XX ebbs it's the need literally be they And and were meaning, prices there of what then to times do. doubled And to I really from these mentioned, as component. we components chain I I there that usually source brokers where it’s massive Sure. and dollars the had are to remarks, to as the of we that just were And to in flows, X

we And pressure I talking we current quarter. us was that more the our components of to about [POs] manufacture this in it think I that ahead we're been lead components mix yes, placing think the particular the again, components of aspects it it's with. that getting it, needed exaggerated us products products also longer just was every quarter I we're available. and like second of -- in against we've mentioned And But find than has seems it been time our (ph) worked are need reengineering products quarter. the were quarter this to for even there XX:XX and So and certain

Ryan Sigdahl

components. can you get -- those improves those much How XX:XX chain and when supply

ready be shipments kind or Our potentially of customers and a spread to can recovery receive multi-quarter will kind to where are sales? you of deferred duration this recover an installations, over immediate those see

Joe Bergera

XX:XX Yeah.

the able that take I will, for critical product take current think had of right an and I'll Ryan, the in at situation, a -- is kind not need in haven't in if vendors. of same our that so because in of revenue, a crack there that we this that. past opportunity impacts are to the people had to are I expect acceleration ones. the point, time are you would but So be also for chain attain It And but would I to now actually increase was we a I of to different, actually the at a in market I are sort it dire a not as massive lot lot but expect are to a absorb agencies that there of think And this product. other advising product. like result. position, kind some only similar need of a supply revenue customers us, of But in of XX:XX circumstances would

accelerate windfall, we So manufacturing were in should if our -- it quarter. able given that the any happen will, components become within with could you result to and shipping, a available, any could our and

Ryan Sigdahl

medium then given XX:XX How not guidance you I current next is year, situation? you're of I It guess sounds bigger growth guiding the pretty confident And we top get one recoveries quick. could target you low like term know as in kind to quarter for organically. away. are think, line double-digit the some we're that

Joe Bergera

services. indicate low and if and than the it's look you bookings demand -- a think just that year-to-date on third growth, the more mean a for backlog, products our year-to-date quarter I certainly is there basis, year-to-date perspective, would double confident. XX% like extremely the was I XX:XX demand So the we're digit at backlog which from

be And a supply going to so, XX:XX market of Doug the to supply. a simply chain said, continues it's As matter -- be challenge.

I of third the taking think we certainly of way quarter in a else a we're the taking measures, everybody that started continue same we is we And are that by That is. said, being -- everyone all number number hearing them. sectors. that across impacted to take

that haven't the probably fourth in third. third to I say would in prepared than in I manage quarter this. In our gone current we were through quarter we’re this environment the So better

the -- again we're a optimistic So achieve highly on the to cautiously growth. demand we're ability side, on confident about But on side. supply our supply double-digit

Ryan Sigdahl

back capital mentioned you also and help M&A? How our pulled here. XX:XX do allocation share the Last versus M&A one me, you think about your of stock pipeline, use buyback that for is most accretive

Joe Bergera

do Doug, want Yeah. you talk to to XX:XX that?

Doug Groves

not and I the frankly, they buying. want. of don't They seller, would be so Yeah, we're that at ideal, an want want at share to honest, Sure. the deal. we that issuing looked mean, the have list. on Obviously, a target characteristics asset certainly stock lower depends stock, the all-cash be quite XX:XX the $X And upon and really it where the is sellers things just

really purchase the really equity and -- pay drives firms. it of the upon ongoing we think for we might how how depends But price that. financial lots So of target that about with have the characteristics discussions private we

You we credit put Capital small of may have One. a with line saw, in

upon really financial at, we've are willing it's So characteristics what options got the sellers but their work target, can dependent with. the look various to we different and

Ryan Sigdahl

was I [Multiple clarification, share a buyback referring to Speakers] a Just XX:XX

Doug Groves

XX:XX Share buyback.

M&A was about. Board it do now That's horizon, from and one we the definitely at during is has doesn't it's an that But, pipeline talk continue than look as it's And authorization some like So look looking have to it better going if materialize. -- open the at something mentioned, certainly option. our summer. the on Joe and to we something mean, that I point,

So we're to share probably the buyback. to feel as use like best a continuing opposed that's

Ryan Sigdahl

XX:XX Good Thanks, guys. luck.

Joe Bergera

Thanks, XX:XX Ryan.

Operator

with XX:XX Please the go the next [Operator Capital. of take from Instructions] ahead. Mike question Latimore We'll Northland line

Aditya Dagaonkar

from is you, the you're that the benefit any of infrastructure regarding potential programs color the any government end behalf getting bill if Adithya could give Mike of by this could or on benefit Hi, that calendar from Latimore. federal -- on you XX:XX Could this some year? any emerge signals

Joe Bergera

Absolutely. XX:XX

year. expect before, that's of new either years and National impact in Transportation. creation start local to and agencies safety an July X we've that that And As benefit One start will in would are October said a to Council the us. IIJA we a X. fiscal Safety from news general state Department there the program or the fiscal different been their most US see certainly related by number of lately is of areas area in particular the Those

coalition in funding, lately. one with an That's initial of affiliated key actually Safety sponsors were billion. with funding engaged of that news are relatively closely We we the just example that’s actually the been National with is a a and topical, activity is Council. working small closely that's amount it's because quite the $X.X But that --

Aditya Dagaonkar

are states programs? and related XX:XX All which most And your investing comes technologies it to also, when other right. active in

Joe Bergera

Texas Sure. XX:XX total look Florida, which infrastructure, mobility are if in you spending X it's Yeah, -- at that largely national largest smart the in so California, concentrated markets. and

those general, regions tend country. total of spending, tend a markets, validated markets not X the about those the on most, they of to are combination be think spend I other newer lot tested, of throughout generated, to the in XX% in national of represent ideas do vanguard, they the and the later only adopted then

Aditya Dagaonkar

did me XX:XX tell contributed how quarter? also TrafficCast All particular you right. to much And this could

Joe Bergera

do Doug? Doug, there, to you that? Yeah, Sure. talk want to XX:XX Are you

Doug Groves

quarter. $X.X I XX:XX on sorry, the was in mute. I'm million [indiscernible]

Aditya Dagaonkar

you can XX:XX repeat Sorry, that again.

Doug Groves

quarter in the of $X.X revenue Sure. XX:XX million TrafficCast. for

Aditya Dagaonkar

XX:XX Thank All right. you. Fine.

Joe Bergera

Doug, to just prior was So $X.X I'm that the to the sorry, million confirm XX:XX $X quarter opposed quarter. in in actually that, million as

it is a I net – did or So, $X.X impact million

Doug Groves

XX:XX the in year was quarter. Yeah, $XXX,XXX it prior

TrafficCast basis million. the So net the of on was a compared revenue $X.X

reconcile So growth to you can mentioned. I back organic of it that the $X.X

Aditya Dagaonkar

guys. right. it. All XX:XX Got Thanks

Operator

or remarks. at turn there XX:XX to And I'd back Mr. you like over additional call to the are comments time. Bergera, this closing further no any for questions

Joe Bergera

I appreciate I And questions. you, everybody's Super. appreciate XX:XX the operator. thoughtful Thank and support as always, it.

Investor be Institutional be also investor May And relations the various outreach investor and participating On the our this presenting in on we'll covering sell-side Conference with analysts. Riley we'll XXth B. front, events quarter at XXth.

that, a you'd in and participating or please June. with conference, In you or are we Thank attend when look results we'll and plan Riley again to fiscal us with you early we to on presentation continued meeting our XXXX call. our With the conclude full us. our in meantime, year today's updating you. XX:XX one-on-one forward like the to meet schedule fourth report B. our If quarter progress

Operator

and and lines. your your today's for XX:XX you participation now Thank disconnect may gentlemen, Ladies call. this concludes you

Iteris (ITI) 4 Feb 222022 Q3 Earnings call transcript