ITI - Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Iteris Inc. Fiscal Fourth Quarter and Full Year 2022 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to MKR conference Group. like Kehrli to now the of would turn over the Todd I Please ahead. go

Todd Kehrli

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

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

company's we'll Following call the analysts. the remarks, from open covering their prepared questions for sell-side

a and the to company’s those risk recent most specifically XX-K, which company contained in are results the today remind events information actual Forms Iteris forward-looking from Before and this are important files forward-looking that should Commission, statements course to performance we during that like participants and to of forward-looking these contain of Iteris the the assume future discussed and that on and undertaking differ may to guarantees we regarding still what in the identify today with is provide all the of documents not continue, future factors is future. time the or differ make may XX-Q, current refers updates you which statements. cause date are company’s could to from statements based performance. that substantially X-K, Actual call, that we’d results materially valid. comments of future any the later that from no statements subject be will Exchange from company, to an one at Securities the change are not obligation to time the

today’s the section www.iteris.com. website As always, company’s of call the on Investors find of you’ll webcast a at replay

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

Joe Bergera

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

XXXX earnings reporting be all we’re only as call. remainder continuing that operations our such announcement. The revenue this $XX.X I'll fiscal and respective total results the of $XXX.X quarter fourth the segment revenue million, record XX% company million discontinued reported today's a representing of discussing of and for year full for As year-over-year X% fiscal of XXXX in presented increase. periods record total operations

and variance in is As year presented our result supply revenue sensor that you’ll fourth to this million of attributable challenges fulfilling are to million revenue slightly revenue $XXX revenue lost $X.X note full on These quarter this is note chain guidance recognizing $XXX million. below orders. Vantage fully from us The not backlog.

increase detail we’ve minutes. more $X.X to and Vantage our fact, ClearMobility begun a positive fulfilling in first XXXX. supply backlog continue quarter will chain to discuss chain and is customer Notwithstanding in mitigation platform of we leadership representing of fourth plan a record our our million supply record our compared In supply million, representing In This brings a $XXX.X to infrastructure year reported year-over-year. our in the bookings market. net total XX% of mobility same of bookings to smart period. position quarter the a management million strengthen XX% year the total fiscal exposure chain very this the few prior net $XX.X increase challenges, I in full we response

we sequential XX% we increase record a representing bookings, basis. of $XX.X total sustained ended on XX with period backlog March the year-over-year net and ending ended sorry, record our Given March a XX an the period, increase I'm X% million

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

The and XX.X% mix our was shift constraints. reported service As fourth revenue. supply as reflects of year-to-date in reported million a XX.X% revenue $XXX.X quarter point of product revenue as chain comparison, was

Our representing $XX.X year-over-year. fiscal year X% million versus the in revenue increase same $XX.X period, prior fourth XXXX an quarter was million product

this our have $XX.X product revenue period constraints in respectable than the higher quarter If million While growth, the year prevented is expectations would shipping higher same XX% our fourth revenue or our full chain that in constraints, and fiscal have supply organic prior backlog. million same fourth or supply $X.X from Vantage year us sensor million been prior fourth been the the quarter below not chain due to result for quarter period. $XX.X product XX% year was would

sales XX% into an Additionally, our Vantage please the X, to note increase that on started revenue the in sensors period implemented growth unit in due not bleed is our January we results. XXXX, increase price fourth our to since revenue has quarter product for

about and As competitors least chain we’ve prior sales better call, product take our market market. at than the the the provide we to in price share environment fourth on prior supply quarter to believe navigate continued Iteris receipt talked orders. the continued our the we on quarter one quotes corresponding to detection Based results, of

For Ford, quarter Iteris’ quarter, the comparison, decrease partnership XXXX. awarded at standard connected traded March disclosed of which in was Autoscope to ended a project year-over-year revenue detection reported product XX, performance in of industry. with performance our revenue sensors, automated and operating AG announced the with major continued factor is cooperation to Toyota, safety end, and Fusion X-year in A publicly sensor. superior share that Technologies that Continental fourth potential the our our million for competitor market we the in vehicles XX% Iteris Qualcomm only set demonstrate $XX Vantage gains To pilot the in their for first

only our million a from signalized the hybrid deploy Louisiana hybrid California $XXX,XXX Next Fremont, quarter occur additional signalized Vantage costs will for standard to the supply Department current Doug Next deployment components our resulting across on the a across to Next intersections, purchase the largest million characterize source million vehicle by a nation's and constrained a the Transportation initiatives competitive with sensors, ability sensor. to in Vantage a York from Transportation deploy Miami Concord, gross ClearGuide expedite selected statewide in $X modernization from a and deploy CV. Transportation modernize our brand margins. Radius sell impact deploy the a $X.X the we sensor Colorado with hunting city’s other sensor words, as our deploy project EBITDA a State Florida sensor license we won for of Rouge, order sensor, order entire with our order New chain our city’s our intersections fourth will Department constraints video challenges which Baton our phase from the our supply our RADAR RADAR Unfortunately received for order Spectra Vantage but from the of California a at Vantage Next And Department to orders, District to detection. approval, of $X Vantage and not corridor to connected Seven. Florida Dade we quarter in million $X and fourth from Additionally, procurement signalized backlog, chain and detection, to Next notable these intersections, of Furthermore, to challenges alternative fulfill the video of sensor the multi-phase county’s following many of $X.X detection in also significant modernize order signal as Vantage was and first near-term resulted suppliers. to million purchase to That and

Fifth, buffer our Key to elements of certain one of Vantage the additional sets; our on meantime, six, However, increases our chain to expansion in expansion inventory to with hires. and commitments to secondary volume in supply position. broker chip intended that three, components; supplier XX forward. for comprehensive mitigation we you or redesign is network certain price developed reduce are strategic materials supply and base want the manufacturing for help costs the advisors implementing I and implementation business outside include; and of improve progressively plan, assure market certain chain of plan of two, key dependency a price we've alternative of offset a XX further our to which chip chain practices boards cover of sets; circuit currently target by months supply of increase negotiating specific to and enhancements our going sensor our

Our current our conditions. as plan chain discuss we lines and this want as XXXX the detail. lines through words, if even of same position in a minutes, quarter. in financial mitigation the remains other gross our Vantage XXXX will should business. fiscal meantime, the I fiscal the implications benefits of global Doug supply improve our bleed more supply In performance of the revenue should to progress through In In margin review few second service plan largely meaningfully to the chain environment begin sensor our

year-over-year activities, was $XX.X of million million with million $XX.X recognize as represents $XX.X period, the XX% increase. consulting revenue recurring versus we service revenue XXXX prior and increase. revenue, period. is two, fourth revenue a in year that offerings. service platform recall, X% managed a full same fiscal you'll a year year As the data-as-a-service, basis, project in same two and forms one service On from an million Fiscal This year-over-year was versus revenue service annual service representing XXXX associated prior based quarter $XX.X our software-as-a-service our

service Transportation response Transportation conduct and and priority orders million bookings, task full our unlimited contracts support; for Department In budget contract year mobility, solution maintain order $X County $X.X our following continues a smart notable. more record solutions to total infrastructure net $X safety A integration a well multi-year quarter Transportation to enabled and traffic million contract total a than and fourth of or full service of LA intelligent multi-year customer year net vehicle fourth some to support being management, million Authority and to to several offer undisclosed was resulting with in revenue weather million iHeartMedia’s year Florida task of the with to as the ending ClearMobility the synchronization the managed and the program, Virginia initiatives, to roadmap $X.X from task total asset generation with signal cloud in executed data-as-a-service its which was as signal planning, more contract of strong, Metro for and priorities. fourth agreements revenue of fourth an operate operations, with in with Virginia record total be annual summary, provide XX% leverages mobility, ceiling XX% as network Transportation system, sustainability traffic recorded bookings with Orange we backlog. total a revenue. smart well In service a an or quarter, the next safety million $XX.X Department the for three-year a and quarter value, $XX.X to quarter as full and, million revenue very sustainability Iteris’ Our recurring order Department service recurring $X.X annual million large transportation,

Our report plan. progress from chain sensor million Advantage made quarter supply We fourth organic good our revenue mitigation us for growth, chain solid $X.X constraints fulfilling backlog. initial and our did we supply prevented implementing

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

Douglas Groves

Thank you, Joe. afternoon, Good everyone.

press As during and today. for which matters filing a reminder, discussion of IR the please under website our posted further see is a on the XX-K description company's call release,

challenges top line As several chain impacted Joe this mentioned both again the we results. that quarter supply bottom and faced

anticipated we componfec. certain of had some these challenges, While

top quarter today, we that as Joe this bottom again, call line and supply faced results. chain the mentioned, the During impacted both several challenges

While of unavailable quarter. components in certain quarter we the available challenges, suddenly last were anticipated current were some that had these

So approximately could environment. from assemblies backlog. product a four from the in out to substantial to approximately suppliers. family sensor sensor were product there quantities components continues From revenue we we percent challenging million a not prevented very the this core of be within any source the card sales drove us of a manufacturing in $X.X necessary This quarter. our fulfill that Vantage QX circuit standpoint, to slip all needed This

sold we side, to components have that our multiple of available suppliers. On not the goods were from continued normal cost

basis expedite we secondary million XXX to our XXX impacted the these component access cost anywhere coupled product shipments saw X,XXX from brokers, to higher freight markets, had components increase with by increases, i.e. or the $X.X we about These costs. gross So prices to where on costs margins points. component normal times

we've situation. mentioned, ongoing to got Joe As the many improve initiatives

full to there pressure for initiatives. few chain expect continued do benefits before we supply next realize However, the the quarters these be of we

products On bright and and the our strong for by our in side the as services to continues demand record evidenced quarter. be backlog bookings

XXXX fourth quarter $XX.X ago. fourth a same on quarter revenue for the of million the increased X% Now I to in will $XX.X quarter year move the compared results. details to fiscal Total the million to

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

costs. due As all higher previously this mentioned, was freight and to component

to of XX% revenue points last chain basis, recognized XX.X% to which is issues, mix, margins because year, the to to same declined in revenue a quarter-over-quarter. compared revenues much compared the quarter been product shortages, were chain account into Turning the would taking million quarter $X.X would to mentioned excluding and XX.X% X,XXX the On cost closer $XX.X million issues supply basis the average. Product year, $XX.X about due their revenue from last our gross that been the increased component have previously. to XX%, the same normalized historical supply X% margins of have was not gross the growth million

revenues million fourth gross of several margins in to current decreased prior quarters. quarter, as gross year. was prior was mentioned XXX costs in compared year grew $XX.X higher basis revenue quarter, points due prior which the X% to This year consistent on to the our subcontractor the projects compared to million in XX% with annual quarter. in last recurring compared quarter XX.X% Service the consulting when revenue, to $XX.X the was the business from quarter, service to same Joe total Our XX.X%

As a or are subcontractor on our in reminder, less limited to gross of public most most the markup to agencies. policies of the due costs business procurement consulting margins XX%

chain continued same ClearMobility the expenses higher related XXX,XXX and the we data build our we million prior the million in $XX.X higher to cloud. fourth ClearMobility for compared in year slight a result R&D $XXX,XXX is quarter. This was sales expenses out were $XX.X Operating some increase and the be operating year continuing from in in there loss same a year commissions of of and compares platform quarter our $X.XX in GAAP bid EBITDA which a the to in licensing the million with of to XXX,XXX year-over-year operations $X Adjusted loss from on quarter was million as loss spending higher $X.X of X.X% of of use or the revenue third $X.X costs loss improvement Additionally, and quarter ago. a proposal quarter for loss, the chain to we of to we increase a costs operating GAAP G&A leverage keeping loss quarter and fourth and GAAP with or to by were improvement sales the quarter of quarter were The GAAP This of $XXX,XXX to fourth a a net GAAP a the net last with yield quarter. in per loss, or the adjusted a supply mid-single Due beginning share, products operating by of X.X% progressive Joe, digits mitigation operations in continuing supply a in or margins. our noted. which gross in should negative was anticipate of loss the year full year. outlined million plans penny EBITDA as share the the revenue. flat of flat General We the a and expenses continue in more ago. supply higher reported a revenue, loss in on administrative position expenses anticipated of million on compares EBITDA The margin focused P&L. the fourth in a net driven compared same previously second $X chain issues marketing the the loss a get the

XX% to are as their of close again XXXX, return year which we QX the average. to gross to to is margins expecting We historical product add about fiscal the

at and were million in $XX.X in year, changes million $X.X total Turning resources, to decrease quarter-over-quarter the was cash and end result equivalent capital. our of working the cash and cash cash liquidity the equivalents capital a of

later our buffer sensor total fourth stock receivable invoicing of our quarter for for the X.XX% shortages. and Vantage of $XXX,XXX Specifically, and year, We we're hedge model. purchases equipment timing quarter accounts component reflecting being the of is the revenue in ongoing supply buying more in quarter chain raw the in spent life as due business due property materials the the asset shortages to and which $XXX,XXX against to in our increased to the products

in we situation, we're be So the many focused continue Fortune XXX supply challenges, in not we summary, to as reported the chain on and multitude laser on alone have also given this recognize experiences companies products. global shortages similar of a

ahead that are purchase situation supply on chain where that, buying can, With mentioned, components extending Joe by proactively those enhancing we'll Joe. for aspects turn this we back over redesigning to call ordering, our capabilities. find unavailable I products times manage will of As to and Joe? our the replacement lead

Joe Bergera

thanks Great, Doug.

global its smart as the based and and mobility access, trends, companies the to market lack. infrastructure Investment continues Iteris disruptions, historic and position highly market. degrees investment enhance This associated significant in new Act, pandemic as management market market our due despite provide Iteris’s So dynamic to recently optionality chain by represents and secular IIJA. platform and large well and or that fragmented the supply opportunities our strategy Jobs freedom of our passed in knowhow most driven Infrastructure favorable

service three, and from of the Iteris certain we competitive our optimistic our will increase result, FY of Technologies continued our activities our in position and enhance inorganic Todd utilization, sets. enhance technologies our President automated the extending consulting the differentiate mobility will comprised enhance reorganizing better ClearMobility business transition of unit. intelligence private of and the banded our our single front artificial the five, of ClearMobility sensor the SaaS new been Automotive and consolidating to served responsible our functional centric packaged solutions cloud our which the supply appointed Vice revenue the and across and to our Todd to Will Solutions. President solutions annual end ability economic team allow us Vice new proposition be unified rate our releases adoption ClearMobility and applications vehicles; Chief support of these of solution public markets; Technology aggressive comprised data team an model. development customer our Officer. pre-packaged to we're in support subsidiary are our resource single cloud from and Sensor sell who by Cousins, roadmap. sensor enabled connected advanced enhance segments; SaaS Zonar new joined The as accelerate everything This and units. some clear opportunities, OEM product business software two, in continuing a services -- will and expand platform for the of teams Will been development President and and solutions team an to for Product we features sensors; Advanced increasing of Key and a delivery the of accelerate platform, Continental drive banded served other and has roadmap despite of cross capability one of our believe cooperate appointed the will by creating our led roadmap Officer. installed has of an recurring ClearMobility Systems, as our Kreter, ClearMobility Senior be, portfolio, solutions aggressive execute to responsible that introducing XXXX data current a offerings, expand adoption has Manager new organic attach Chief the roadmap, and will with for value are structure of Iteris sensors environment and Vice and model business and buyers about Previously, who President monetization To formally unified important proposition To enhancing as further be value sensor AG, be development As where among growth. and General accelerate for sensors; four, product to improves benefits solutions managed of a portfolio, recently actually very the alignment Senior and a chain who capture technical he sector led structure will The near-term Products, Senior team will opportunity sector Design increasingly constraints. disruption Senior IT our The six, Vice mobility technical cloud and

which restructuring benefit we full result pre-tax Iteris cost As in quarter reorganization, will a of the annualized realize of to materials until our benefits mitigation our help million variances offset savings chain XXXX of to begin $X.X a fiscal first and cost approximately of take will in this million, generate supply aforementioned the plan. addition charge $X.X

release sector public best-in-class solid Looking both due sales to demand company's of includes sales ahead, the and to our new technology ClearMobility platform historic for execution. continues sector the pipeline, private which reach and levels our sustained

as half funding agency IIJA begin in quarter complex first especially pursue XXXX. dollar continued bookings and multimillion fiscal contracts, and up fluctuate expect may quarter-to-quarter, we private in we growth beyond, to show our large with to state budgets in Additionally local including of second our from anticipate even agreements the entities. Based million, our more to supply will continue total though range. the we of results our XXXX produce growth, in growth on and at revenue $XXX our benefits we second Also starting sector as would forecast midpoint guidance million backlog chain anticipated to to $XXX of plan fiscal progressive organic begin quarter. mitigation record represent the noted, XX% of previously Therefore which bookings current

chain supply in similar make full to XXXX, than forecast challenging chain fiscal the X% to impact we supply but Iteris EBITDA better plan. first we track improvement update. fiscal realize extremely fall operating on fiscal good to quarter our Iteris XXXX believe an clear, year most a range year we Therefore benefits believe to technology begin global be the XXXX XXXX we'll platform was of of quarter, the continued period summary, our full of of revenue. outlined As XXXX as mitigation In after fourth December to look our and to To realize fiscal progress our expect XXXX to model. which result, our within business issues, should navigated due our adjusted that of a to Iteris the difficulties we of not a model in competitors centric transitioning Vision remains X% withstanding

sustained As market two growth, revenue target double $XXX three of model more revenue the of a annual combination million of recurring organic reminder, and XXXX. to acquisitions by our our above the to the triple operating range the at fiscal total tuck-in assumes revenue midpoint to XXXX the will midpoint XXXX than the and fiscal $XXX million at range

the believe new open Lastly, believes your the Directors to authorized do the be disassociated XX a whereby to long-term stock and market. will and prepared our of We of common we Board the buying stock any from stock of the the questions of the from million own stock. recognition recent repurchase in in because would our repurchased front our remarks stock Operator be prospects undervalued may delighted the program back range business comments. we Board respond time-to-time a trading is of your conclude has that, With in company's have is opportunity of Iteris, and price questions?

Operator

go [Operator you. Riley. comes Jeff with Thank from first ahead. B. Our Instructions] Sinderen Van question Please

Jeff Van Sinderen

great. Okay,

on do just mitigation have the normalization, in or of the realize know the outlook when you a as any today, plan? there. you the there? that but it's you call anticipate for situation, I impact And to was supply then is realizing you Just margin timing quarter, impact anticipate based chain full wondering gross let's what do of fluctuate subcontract do Just work? there fluid the So a an for you guess, what of it? visibility going supply forward then, chain are wondering And second impact sort part of on contemplating that, what

Joe Bergera

you those do Doug, want questions? to take

Douglas Groves

Sure.

supply let's start So plan. mitigation with chain the

we've got things several noted, underway. As

is only good of the to is got we've to of noted of to field we've cards because and things that, making our but got us and Joe field. as, test our some on the the time that also take the but not that is performs course it redesign more of progress of apart going One product circuit superiority competitors significant the our product, it how in from sets some redesign we're of one the

not probably margins to chain meaningful where the were year supply the we're quarter-over-quarter, So, is in second before kind until this progressively got product product and the better in situation margin improvement that range. get XX% whole back gets about started, gross to then expecting of see the which we quarter the exiting mid

As subcontractors far that work that course of of quarter-to-quarter subcontractors vary the do lot chain have. same the supply from the does with facing go, we we as that are constraints and a

So there shipped as in acting variability the the we're particularly is how where subcontractor, to sites much equipment, integrator. gets system's

also impacted visibility pinpoint really, their now. the it's because but that good only we situation chain So been supply COVID, have by has it have But historically just supply that we don't hard to into not chains. it's been an that area

the that the, improve, equipment not big. our So, will that that better just, very highlighting lot to subcontractors, and we which the more drive things a see of but we is revenue, marked upon as continue from should would expect delivery revenue

mixed a create quarter. any does problem it given So in

Joe Bergera

that So subcontractor think just I related to equipment. you're quick prior cases we've some revenue add project took think unavailable, ability some referencing, product cases points Jeff that. impacted a One was delayed delays in I'll I calls couple two is to and forecasted on forms. that to which our implementation. and also recognize talked In the about those

some we subcontractors I plan, everyone allow which of taken which us about actions because this to outsourced. in-source actually aware those personnel some chain related we delays had some the had to also we talked supplier shortages. staffing begin some Additionally, activities do on be supply we've mitigation call, previously that want were our that that in to will of to addition

party the availability So to third the staffing some with. some contractors that of we that our will worked previously reduce dependency on degree, of

that's we've -- that something that of we took So and have. mitigate will we to the action help some internally, dependency which

our and is our whether with I'm chain perhaps it expectation which remains are we going the calendar the that plan a broader believe, we that is chain the through even Jeff, supply place, position, supply improve thing this saying said, consistent is our about issues, overall we clear as probably mitigation of chain chain today. other asked we based end were But ball. global have supply the most you've think situation not which as obviously environment we’ve don't sure overall expectation put what supply is, experts same is crystal we on in But least the if longer. we the The difficult at regarding of the about what year, remain can to global is

be we're a So we're there'll that problem, but mitigate continued exposure. efforts our to taking expecting

Jeff Van Sinderen

Okay, great.

Joe Bergera

Did address everything ask? you, for else to Jeff, you'd anything we like or

Jeff Van Sinderen

sorry. No,

on maybe I'm you the stock vis-à-vis think most let I there. points of do touch I ask to you I that me see, just did the well, want announced how the does just today. you repurchase I guess hit ask this? wondering that, on timing.

beyond kind be just I were thinking XX at, now think to you wouldn't making, you'd a which was make months probably timeframe that the think that? we're an we're stretch lot I acquisition, stock past now? of you in you're process and other In Is the thought or words, lieu are how making approaching all acquisition buying what's for acquisitions of the around deferred wondering back that another near-term?

Joe Bergera

doing But We'll we pursue we investment those we'll develop acquisition have obviously this investors continuing by our time, highest capital, look say targets. to perspective amount an Doug, our realize that offer stock, at the pursuing of active will and actually that in but we're you any acquisition to at we'll sorts, of to own which well acquiring that's opportunities. in them. very think on acquisitions. We develop point actually, that to are but doing like regard lieu we're do continue want additional potential Yes, continue of is in and that? to that we return a on not additional finite

Douglas Groves

take how imagine, think a quarters opportunities, I you we're develop. it. about could as these And lot several of thinking No, that's exactly to

things actionable. funnel we're at, our stock a buying that, the got sense, of those look looking own we've in So, but the that makes absence of most continually

Joe Bergera

actually least there our at On to flow of to our a in positive uncertainty of least fact just some hand, because because much for will Yes. seen back but also last uncertainty of that market, be arguably be away good us acquisitions, for news we seeing potentially at right less seemed some in away. and the on talked kind the market for will about more regarding, you thing, less say sellers the as now be competition we're like call, backing And the remember may we to start guys that's seems their took which I very valuations. background we've -- buyers one deal so had there

out right a come a targets of now and we will active It's So see little fragmented back. but a that lots are the market of remain there very pause, there. we're sure market bit we and

Jeff Van Sinderen

taking Okay. my Fair enough. Thanks for questions.

Joe Bergera

Operator, any other questions?

Operator

Yes.

Our next from Craig-Hallum Capital Please with comes Ryan ahead. question Sigdahl Group. go

Ryan Sigdahl

taking afternoon Thanks our questions. for guys. Good

Joe Bergera

Hi Ryan.

Douglas Groves

Ryan. Hi

Ryan Sigdahl

curious deals how pipeline Curious, some you private with a if kind briefly your kind that part And of prepared private of on on I bit entities, mix what remarks, elaborate guess can working of you more? some versus much little then of public? is or at end mentioned currently the larger your

Joe Bergera

mislead now Yes, don't want be I so our revenue sector. private XX% people. of would right to under total

sector cloud to their broader years, public through in talking but majority in three interest private next interested private will cloud-to-cloud an from some entities of lot to mobility the strategies For solutions some are strategy. support a integration they're to platform. entities have cases, certain in revenue their I'm own various in offer our seeing continue about that have us And interest these ClearMobility of that we to and our the of commercial inbound sure five sector, who sector or the be we

in entities the that I tell of longer the are that when you -- pipeline big private sector. opportunities cycles sales selling to those sector least private one can grown with public the can as really than But, kind even secrets entities, is sometimes has of dirty little we're seeing We at and exponentially. you're be long of

take time has already opportunities of change the tell So significantly. it that will mix, in you but a we our can some private to I sales sector see increased before contribution meaningful pipeline

Ryan Sigdahl

primarily service both? And side that, then that or the the side on expand is or just product on maybe

Joe Bergera

cloud some a that in as talking about And So well, I'm service talking this services, software when I'm data about even sense in cases, as in the both it's case, and a we any, sales would enabled not At include that private for not public services any the this our sector does providing private be does entities. sector managed point, services pipeline consulting material entities. sector service.

service opportunities. also my product detection a then a our vehicle sensors. cases everything SaaS related would or remarks, in also service there's the what again, be our sensors sales be some it little is to revenue in, it'd of And also bit and of use in connected So -- but revenue, called we

Ryan Sigdahl

Good.

Iteris kind so free for think fiscal to positive flow year? will year, be but cash on this Moving of the do EBITDA you positive guidance,

Douglas Groves

Absolutely, yes.

in remarks, getting situation supply progressively said we very chain this on, better. the focused as -- We’re

absolutely so cash I And be that it think positive. will flow

Ryan Sigdahl

there within may me or Do Good. the at further main any cost the the to other point? for of on out there's just you see restructuring, good this the and One Or this rationalization more business, from savings one kind is ? efficiencies. more consolidations think streamlining operational point to is of this opportunity parts

Joe Bergera

you on internal process a we're kit, and focused out is mean, things also restructurings, I responsible this anticipate us for those guys development this, lot be tool and and, an near-term the of our that. to One take wouldn't because reports to Doug. things when get a like information always effort a are know to, who don't being Yes. try leading Doug's and of behind together we're But which can for opportunities while And implementation we lean any couple technology group company. things. like automation systems, obviously actions disruptive. things of we said, improvement that the I for other make gang for rolling across there

so, And those, Ryan's you could on color provide some on to maybe of Doug, question. additional some

Douglas Groves

and automation term, to processes to work would usually the it's and the point, Joe's it I near in to but looking of always don't as there that cost better maybe both. we does are through or to company the I certainly to, think opportunities improvements referred able redundancy personnel, streamline result we're in continue but Yes. and for, automation Joe as that structure, Sure. on sometimes with say there's be anything this, be

Joe Bergera

we're said support to our we've automation due try And lot are to it's continues more Yes. of a G&A with to automation, as before, which But And will more using there We're that keep automation, that and G&A process marketing. coming, the customer enable start sales even opportunities as intent or is certainly company automation, as the to corporate more flat, talking certainly marketing is a the us to continues to grow. show respect grow. about. leverage company operating to to

Ryan Sigdahl

guys. Joe, Good luck Thanks, Doug.

Joe Bergera

Thank Ryan. you, Yes.

Douglas Groves

Thank you.

Operator

Latimore Our Please Capital Northland next question Markets. Mike ahead. from comes with go

Mike Latimore

just thanks. strong bookings recession, not, I regard? hearing there. hesitancy and sort good agencies I guess Yes, of that from of a to see there's or the that little Hi their where given customers some curious from, inflation I what of would because an are assume but among they're Joe, of talking around you're imagine sources revenue talk macro additional insulated your your theme in more kind about come

Joe Bergera

very generally mobility perspective to Yes, that's be our generally from true. continues overall just robust. market, The

to and constraints point public in through We I at activities is, pleasantly question lot We them that agencies? no, to about surprised chain think The exposure inflation, a than so to and better the least the had sentiment private we at have more answer about respect discussion of pandemic anticipated. than that sector much the supply your is came budget the position were of is a public the with the sector public public most this support. not specifically agencies impacting that

that, last local to state been one us what on in cycles is have finding during that's dedicated and benefiting been And are, for don't infrastructure vehicle about putting to that of economic sources talked from economic those transportation those kinds the of agencies to support somewhat be have We their sources prior a revenue example, lot thing initiatives. taxes, registration calls, decade that revenue used we're cycles. over fluctuate seem tend things insulated is much like fees,

was state recent of that local And going been summer. is which agencies course a during feds extend lot that, revenue of last the stream a of lot has remained the so pretty most have and stimulus, for to Only stimulus. federal about that the that spent. the people talking think to are portion the top even of to I COVID. the And expectation was strong on then a enacted been of there And of worst And continue use period funding.

of that under there's provides increase Surface IIJA funding agencies more was Funding state a it, of match nice Bill, a So then doubles to And that top local in and Federal the Transportation available there's course, Act huge the And Act Fast on than the backstop. previously the which additionally, so requires that. the, funding. FAST

on effect FAST multiplier huge a there's So Act. the

this So overall, time, seems to robust. the market extremely at in at point least public be sector

Mike Latimore

there kind any into I negotiated know your have those contracts, sort first the contracts non-renewals? service of your on a are service on the great. then but you, built well, inflation or increase I of, on you contracts, adjustments are don't Yes, sensors, know price know, And I

Joe Bergera

so Yes, it depends.

about, services. products relatively we've are talked lot there of again, different kinds it's a services, So easier on In for of the reasons.

on that that enabled and prohibited. to increasing with we committed managed of software, over no there some we've certain case contract, flexibility pricing also may is contract in with respect our unless to in be to we terms respect opportunities, time for that our course we're to of respect services. the cloud contract period that in So we under we of believe But and the escalator have software the and do our in with pricing new event products,

business revenue restrictions. can more to our outsourcing, labor of we rates, and to underlying terms there in a of our the have be generally Now, that, consulting provide visibility is with associated where process lot and

that. don't labor. you back a as level to additional instances, associated with on is pricing we And service anything latitude. data service or that. if less that at a more services have associated software, is it know want finding this But are add in to Doug, agencies pushing currently those lot agreements. I remember revenue our We than of are More point, at direct XX% underlying least with of XX% than

Douglas Groves

obviously No, can I it rates, to for our think that I we it, covers opportunity looking increase revenue. I I well. you mean, we're pretty mean, Joe. summarized every increase mean, our

in basis And day a but out that's also so we new only we day on not renewing. work and as do judicious look at that work,

Joe Bergera

Yes.

it reasonable means total, is in tied XX% what got some again, rates degrees latitude, our that Mike, take XX% we total of actions. about revenue, we latitude we've will and have but which or direct of labor of limited in may on So summary, to

Mike Latimore

you sensor report All And unifying or then right, or the reporting you change any that way does great. on team, and are? of to forward cloud the continue merging going the

Joe Bergera

Yes, Doug?

Douglas Groves

This there's changes more a be of an to how more report. reorganization is to no there'll we organization. internal No, -- functional

Mike Latimore

great. you. Okay, Thank

Todd Kehrli

Operator, Mike. thanks other any Awesome, are there questions?

Operator

turn There conference like back Bergera remarks. Mr. are over to no the to closing for questions? I would any further Joe

Joe Bergera

thanks a as and operator, the your great, today. also I analyst always, And appreciate support lot we help everybody's Super really questions. and thoughtful appreciate

with be in Cross-Sector us, fiscal when sell-side Xth, if on quarter. you with Investor our conclude at meeting Stifel participating Boston, you. in Insight next front, we’d a Thanks various we'll forward presenting our call. various in participating continued Massachusetts our we our progress the plan meantime, everybody June the we'll in to with be want coordination know -- this we And presentation covering Relations analysts. In We’ll look Conference, Stifel Those on in events yes week. to just results. see outreach quarter that, you're I report again love XXXX Conference the schedule please to Investor will On various everybody. the to that with attend investor updating be and/or first done general today's And also

Operator

you today’s for attending now conference Thank The is presentation. concluded.

disconnect. now may You

Iteris (ITI) 2 Jun 222022 Q4 Earnings call transcript