ITRI - Earnings call transcript Q3 2019

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Operator

Good day, everyone and welcome to the Itron Incorporated Quarter Three 2019 Earnings Conference Call. Today's conference is being recorded.

For opening remarks, I would like to turn the call over to Ken Gianella. Please go ahead, sir.

Ken Gianella

Thank you, operator. to Quarter welcome Call. Earnings and afternoon Itron's XXXX Third Conference Good issued today earlier press our We release announcing a results. The about press today's information call. release includes replay is webcast A available Relations website tab. to accompany remarks Investor this presentation our under the through on and call the our corporate on also

On we Officer. Financial Deitrich, have Itron's Executive and Chief Chief today's and President Joan and call, Officer; Hooper, Tom President Senior Vice

the call prepared to open take operator remarks, described. the using our Following the process we questions will

over call our the Before Tom, and please safe of turn I you remind to non-GAAP our let presentation financial harbor statement.

release presentation Reconciliations available our earnings release our and current Our non-GAAP differences financial Investor earnings of enhances in our Relations performance. future and financial are of information believe that measures on we and understanding and between non-GAAP overall website. the GAAP include financial

We forward-looking. are call will during making be this that statements

these uncertainties. discussed comments risks statements could forward-looking differ on subject any Form to and These Commission. based made are from to call our section because expectations We of and are release, Actual the results today's and and that and not the earnings expectations, other assumptions of Risk and reports during current do undertake Factors materially conference in in filings any Exchange the update with this statements. XX-K Securities duty factors

to turn to Tom CEO, our Deitrich. over I'll and call please Now the Page X presentation in turn the

Tom Deitrich

you, thank Thank us. for and Tim. Good afternoon joining you

demand of network non-GAAP our per $XX flow solid. our were summary, adjusted revenue was segments. key performance and of $XXX quarter solution continued driven In $X.XX by results These free share EBITDA earnings results third million, strong primarily financial million, in Our million. of of $XX cash include

to on performance provide like the our now quarter. bookings insight would I for some

billion. prior backlog at $X.X billion, at backlog $X.X year our the on the total with remained XX was at the month and Our par quarter of end

of achieve book-to-bill full Our were remain year on bookings to we ratio $%XXX approximately one. quarter and one track a within the to a million

In creates quarter, technologies announced will signing This responsiveness we deploy collaboration project of a This contract across the new agreement of our a of a energy is grid to third strategic significant into Energy. clear smart Xcel the level insight industry-leading operational their with Xcel Xcel. key for reliability enhancing This strategy. give customers and contract elements consumption, demonstration territories. their more of with while

with based network generate and on technology, our information. the the X enabled with available deployment applications, utility giving the to years consumer multiple intelligence combined Itron Examples for to distributed that be ability store enhanced of will the will applications our ability applications outcomes energy Gen The devices, real-time come. which include be to Riva oriented are deploy app consumption communicate on

the of increased or of grid Energy effectiveness. efficiency operational how high of such energy vehicles, perfect on inside success or as impedance customer example of in the issues, locations electric growth electrical Xcel Monitor is clusters our discern home, individual drives all or appliances focus FET, our other business. to improve a

theme new create connected customers, footprint thought and future. to cities partners suppliers and the our utilities today devices, opportunities of cities. weeks into and be we few to our view of at leader to to expands resourcefulness we Florida. innovations expand industry Utility a we strive communities the and utilities leading of which X,XXX over ago, support the community, hosted As in A our global Island, on power consumers, Itron aid our Marco event individual Week The of the of was and

in the from and human well Irma, hurricanes struggled on and our including wildfires United communities industry released States. natural latest Florence, Harvey, part to around globe the caused This a as and and research we the western disaster serious of recover preparedness. Dorian is in many timely States Maria, topic, At conference, as as United the the catastrophic disasters

severity disasters we real customers shows the than research that number with our has solutions that frequency and community XXXX, since can we quadrupled problems easing. desired partners more them of the to of offer of and today, allows collaboration annual The Leveraging not per by applications outcomes. worldwide technology year. The in and to their is disasters providing approximately achieve XXX address

we By At monitor they and about efficiently excited environmentally were are our the manage the possibilities the the Utility into and value. that and enabling end today to to partnership serve we more our with customers the communities future. our of communities thus bring can and and we and serve resourcefulness expanding Itron soundly Week, utilities cities energized

hand full the I off results. discuss will now XQ to Joan to

Joan Hooper

you, were of X. the consolidated We on GAAP are X A third with shown Tom. Slide summary performance and shown is in non-GAAP quarter. pleased on results results Thank Slide our

restructuring. from due by million of and growth from gross last gross driven higher QX to some points solution segment. than XX.X%, Revenue partially QX expected margin basis shifted XXX The the products increased network last primarily QX. was the costs variable benefits into percentage compensation versus lower quarter warranty than margin year, we offset X% higher and by in in XXX year, margin was higher

of Moving earnings per per share prior share, XX the year. million with diluted XX to million compared GAAP $X.XX net share, or was in or income net per income $X.XX

XX.X% XX $X.X with the income for for million Regarding in income million XX share adjusted compared XX XXXX. Non-GAAP diluted was was million per or quarter or $X.XX non-GAAP net revenue. share, per million metrics, of XX non-GAAP EBITDA operating or

segments currency, year-over-year growth. In third company Slide all to currency revenue revenue total three Turning bridge grew X, on revenue X% quarter X% some or basis. on constant achieved the constant a

solution strong was in segments. the network growth by driven our demand overall Our

in North the increased currency. X% more increased in solutions solutions water America. reported, particularly in EMEA XX% devices, the each in to Outcomes by This color XX% X% decreased down give footprint as but for segments, step smart currency, X% lower revenue revenues Network reported increased revenue on of we currency. and device shipments demanded To continue of X% constant was globally. increased revenue constant offset in electric as connected for constant our grow reported as reflects

prepaid decline in managed in Continued offset strength in shipments North America a EMEA. services

non-GAAP the on Moving year-over-year to EPS Slide bridge X.

EPS was $X.X with a offset primarily prior had the non-GAAP from revenue $X.XX was to the higher performance $X.XX restructuring. variable year. compensation by versus in year. compared negative operating This higher Net QX warranty fall partially due the per share, impact diluted and benefits from Our through costs and prior

per and XXXX. per Lower interest a versus tax at share share expense rate $X.XX added effective lower $X.XX

resulted profitability to an by estimate of tax derive Each year. versus quarter, Lastly our annual EPS effective review rate. foreign exchange changes year of jurisdiction $X.XX in reduction full last we estimated

estimating rate approximately XX%. non-GAAP tax year we than of of is our up lower we projections, estimate rate current our yielded Therefore, a the share per non-GAAP on are XX% tax XX%. full estimated year-to-date trued quarter. by This for Based in year $X.XX earnings an the QX, XX% revised effective rate approximately full XXXX The tax per estimate tax share. which increase our will of original

results segments prior operating of Turning Device to with Slide XX was years. solutions to of million the the XXX with revenue XX, by I and XX% discuss XX%. business margin will margin compared QX now gross

water this France meters in smart by see and in shipments. We global offset UK, deployments, in particularly electric was decline a continue the growth but spec to

portfolio warranty gross product solutions gross Network mix for of optimizing higher with is The key Improving Solutions down million device revenue cost. to margins us. and area and due a by the unfavorable $XXX operating was and profitability country focus are margin year-on-year product XX%.

pleased We consecutive of growth. digit revenue performance segments quarter with with second are the double a

points year of well Gross of to unusually due gross last to below Margin margin as favorable decreased mix XX%. was product on basis the lower fall-through XXX or with a revenue year last was cost. million points margin warranty on margin. year basis Outcomes Operating due tough $XX the XXX year compare gross XX%, higher

by year-over-year lower than segment basis the to points XXX to scale as increased significantly achieve continue The year this XX%, operating margin Margin improvement and last higher margin we expenses. Gross efficiency. was optimize driven

very with the need segments, improvement pleased but outcome our more are growth achieve year-over-year profitability line We scale. to top in

in $XXX flow million expenditures. times. working the million due quarter XX, million than capital third of capital Slide equivalents to third the quarter; primarily timing This both ratio was free $XX debt end $X ahead of Cash leverage of schedule. the million $XXX we Total million down the $XX was lower net declined in and to to last X.X to the which at year, Turning $XX our after were of quarter, reduced million. paid cash

margin end expected. financial Revenue performance. X debt-to-EBITDA We terms improved ratio that in of agreements, while our bank net we with line debt our and expectations, than to by lower we our QX remain focused flexibility, recently was We the announced times XXXX. pleased increased higher were restructured and resulting our reducing strategic costs. on summary, with de-levering approximately was we gross financing in In

delivered year. due first call, last lowered our on revenue in of ahead to QX the schedule QX mentioned continue we projects in this of be expect As we to to half

we previous full rate year, For are our tax range guidance. The $X.XX. assumption the by guidance non-GAAP previous the approximately EPS increases updated XXXX maintaining revenue

Now, I'll back Tom. turn call the to

Tom Deitrich

Joan. Thank you,

momentum As and beyond. focused our on Joan maintaining into QX are mentioned, we

creation in first team XX accelerate days, As I empower and for reflect my our am of mindful our progress to value the commitments stakeholders. near-term on we to continue made we'll I all operational

and customers to opportunities much and I'm do needs encouraged business value have it. drive growth alignment to strategy. reception the creates to by determination still and We the drive This our the applications alignment networks from enthusiastic their and our of outcomes. in

you joining Operator, open for the Thank our please line questions. for call. some

Operator

we'll very from Moore Genuity. Chip with you here Canaccord Instructions] Thank [Operator much. first And

Chip Moore

you pipeline these how bit seeing, Congrats rate larger into on Xcel. are Tom, wondering of of maybe rate those little discussions are of on expand on case you're cases? side a going, being these factored can strategic opportunities just some those particularly the outcomes the if

Tom Deitrich

be how interest believe other increases, themes. criteria. able the that same on than around assets key with in might What customers was customers do -- a definitely case, interest the their the large for discussions can they more use see many underlying something lot consumers, of and of part central win pipeline at how same Xcel that say your Chip. a in the some we that the now resiliency and activities those We to more to same. Thank of I you, America, are centered was the is AMI those interest and lot ongoing reliability decision base of engage they North would of that a in That strong the

types the favorable easier make When regulatory invest for to these customers see of regulators it in utility movements to of things, our we part side on the comes scenarios. to of it definitely

as So, on like is be basis. a and moving. software It state-by-state allowing things a cases rate built definitely capitalized into the to is service done

robustness a definitely see in we the we the of a the for through and think to takes as for business, that it roll is states, result. and in favorable while each happening itself and web, it one rebuild So tailwinds grid it for but resiliency our

Chip Moore

Joan, to think movement terms year. Can I maybe talked of quarter, sort of margin that? called from I about in existing we on And XX% in QX. the you of QX And expand some think the you approaching out the on performance

takes any in dynamics? there So terms puts of those and

Joan Hooper

Yes.

mention, margin of the had did have we to point expected a that some Overall I booking QX. we think shifting QX. from quarter a ended point that so QX up was QX higher for As that gross in margin, in about products would about worth

Chip Moore

right to maybe assume way bit little the sequentially, that And so, it? to about down think is safe a

Joan Hooper

exit our margin original had shift. right size revenue about the mixed rates, had of revenue quarter, definitely going not be gross so as but into a originally QX relative is the knew shift thought down of Again, much, we to point quarter, to a was the we but XX% about yes. was Well, the guidance,

Operator

take function, James may Associates. our We'll are question & please Raymond Hello up hear open we're to caller, the caller, you. unable line, is on you take pick mute ahead. handset muted. go your or your from Molchanov Hello next Please line with you Pavel be your

Tom Deitrich

Who's next caller.

Operator

we'll Baird. Hearing Kallo no go to RW next response, with caller, Ben our

Ben Kallo

Hey good evening.

me have You guys hear?

Joan Hooper

we can hear Yes, you Ben.

Ben Kallo

please. the So Joan, just guidance, through Tom and to I walk want

-- that. looks of tax, it the housekeeping than tax because there's bigger my but here? much the the Just you math lower worse tax raising want from for impact, $X.XX like quarter the you're rate? how a And quarter, by was it like looks much then, beat How the this

So all put pieces I'm with the kind guidance. those together just of EPS

Joan Hooper

beat. good Yes, every a a update we the size question, general, but the try think And given quarter, just to it's typically fair good in don't I and question guidance question Ben. of

to just or step about you due we how if much with me So moment. back at of that It was keep look consensus a drop. let beat, and about for the tax the $X.XX $X.XX half was beat,

operational. So remainder the was

gross cents of would pull point X The through. kind the of of than margin flow take comment expect and in remainder half you that the was that $X.XX If kind earlier doesn't a more says, flow of I remaining to made through. I

XXX just and So, be of would you're would for been the the have kind let's of top $X.XX, correct, residuals improvement the that tax say. on

Ben Kallo

and look margin the mix. 'XX? what And mid-teen better We out think bigger that then, and Or type But EBITDA more the with used better, of XX% kind your forward we into and look there? are maybe for kind I Is the to to Tom, of how we that frame? And about margin there. is of for I'd have of a 'XX anchor think think ahead takes time it as should we just put as projects going the quarter. assume was about, of some around

Joan Hooper

let -- take me me I Yes, at would I step let this. a mean,

back showed range of XXXX were in did when go we you what on and XX% to to kind the EBITDA we investor day If estimates, we XX%. we of

nothing I assumptions. changed So from would say has those

that it's the 'XX, given think XX% I So in frame. about XX% not time pay guidance I XXXX that's Obviously, for we give but right that will XXXX February, would would in now. scenario to a

business. a to in of indicator gave initiatives, There's what manufacturing of Day slide an far we well, various in And mix, of it footprint, optimization, of are kind kind there Investor it is revenue that leverage mix said, be also natural else whether chain OpEx, supply us how the do?

this at XX% XX% the to above So I to is we would go but an opportunity mid-teens, on. and anchor 'XX point, certainly what the think there's

Ben Kallo

maybe just end there. on update then about Tom, out maybe different that competitors more, internationally there opportunities Great. talked the across domestic Could markets And us one heard opportunities? of some big you about the your and the we've project you international

Tom Deitrich

so. do to Happy

the hit answer the Chip. I with So, in earlier Americas

of APAC. this smart more EMEA in of fair focus applications. I'll see types city along and So, skip interest EMEA, we that a response would amount that one I and In say specifically

Our terms offset on side the of water saw QX. okay Joan's in we things. smart bigger projects some business that the quite comment in EMEA declines up held was That of the in spec specifically

UK. to rollout do of coming see quarters. We starting in across the activity see ongoing couple We activity the do is over the towards definitely France of their ongoing happen in next Germany end entire the to things. how things. business of of I turns-oriented side more us would that the be of characterize QX. side bit okay a electricity held the and for the on country That's European through It tends up

of would applications I side mix traditional AMI, good a applications of be For APAC, city say of to the well. okay. Look smart quite types utility of as and DA things. types

strategy opportunities to terms have past. are in that of the opportunities the look forward a business that terms We countries on. And bit be in will at. of We we tend more how selective pursue those in will we from continue to operated

Operator

And from Company. take with we'll & next our Oppenheimer Noah question Kaye

Noah Kaye

the quarter understanding housekeeping at more side thoughts fourth one the on just Maybe crack there.

full revenue guidance. your change can did You year

that you if at have fourth the here. to thinking margins the you're in rate. sub or like, your in tax the us sort be Or you that, is EBITDA going going that EBITDA midpoint even quarter rate one-time run out about range, right, quarter, of than can if your you the imply maybe would of fourth I would I or guidance anything that or be that going there in a come out expense operationally at or a full bit margin more range? importantly, XX% be I higher X% to in revenue high-end X% beat get Am maybe sounds should cancel to it was there's a think stripped to, the, And be else that. out forward? year you recall XX% that understand and EBITDA gross So, mean, of or of the elevated higher any help lower kind the It

Joan Hooper

back go Ben's which low. little is. in sounds No, question, just don't I X% I to comments, Yes. response a this I would made to

of add revenue and at discussions kind than take and sort to the another ends of the flow QX, then quarter QX through guidance $X.XX from tariffs $X.XX you on lower definitely be going is to due If of then the $X.XX recall our previous QX. to of strictly both operational range, for last

think numbers a set be just I to that going you is little think a than to that get what you I higher described.

Noah Kaye

So this, and expected I though, than done you're guess least, Street the there. or read on is operationally at has my that executing better well

was sell how think -synergies the where have? about earlier the forward? upon I merger So the broad existing X an kind put kind To question, guess, How this as knowledge leaders should to revenue with getting of instance we on is of Gen into network opportunity on you of kind Silver saw real first out Xcel, revenue potential Spring. that synergy of of going the that the a we our

Tom Deitrich

launched year, this ongoing, is meter that is the some that on something X that based ramp icon was can One starting That on we to with now electricity Gen be indeed and was earlier network. new We into an enabled customers and two products. of year. next ongoing deployed

a also the on We battery which side. have is module operated

get if also to a again water plugs gas network. more Gen traditional That's half Itron into X it's of next this device year. that that and into think So the into earth you where year battery-operated the ramp will as and back we starting

the gear intelligence which Xcel on really of a of the Those on part bit Riva are things. blurring was converge. is becomes traditional the through really basic also X applications comes future enabling overlay. network a notion the as our of side X brand-new is all it business Itron of network on a downloadable one the to ongoing which what there's as there well out start Gen distributed piece which the technologies in that started Gen targeted And towards side of the now

well those beyond synergies we for converged acquisition that enormous the of XXXX opportunity on is and products out as portfolio what as product side for So done. the the up us to an had revenue get traditional makes

Noah Kaye

last And follow-up one maybe question Very good. Xcel the on award.

states. understand booked the yet approval assume those you I given of not been awards are state regulatory As have I several TUCs still this by check, last haven't that that At the would deployment covers pending approval. regulatory some

significant that assumed us that for be is can award chunk you a year? this to has So Or just there to if is backlog? added to potentially tailwind think so And is of help maybe about this a be it XXXX still bookings?

Joan Hooper

to question water it correct. have regulatory in our you So are we we Unless bookings your not do number. backlog put

certainly not was would And of the bookings but that for piece it. there say Xcel this of so a quarter in the I was number majority

Tom Deitrich

Correct.

Joan Hooper

will it be XXXX would And probably assume. I

Tom Deitrich

the depend and will when individual It territories file. on states

come. the So as on QX. you level yet a our little terms it of individual some was of in ought deal bookings total when to they now rest the The the to yet state territories. it to think backlog filings the of at at other quarterly it's less to roll depend in value is calculation than come their when And of it through. for what But you that do in one-third will it in book-to-bill ratio would is see end of the meaning

Operator

take JMP next Securities. from question Osha go We'll Please our ahead. Joseph with

Joseph Osha

one and question. sort geeky -- more sort one questions actually X.X I've then financial got of of

at process expected? by On I this of about a end X% than the than I faster But I heard delevering say the X% hearing Joan, is little side, know XXXX. am financial XXXX. been going you talking debt-to-EBITDA you've that less maybe I by think

Joan Hooper

Yes.

under So, in said Investor we X% at had 'XX. actually we Day

same would about of think thing a say by will end faster. I it we the probably little I'd to X% I say get going XXXX. the is So basically

even least maybe So we've the at -- prepaid X quarters X%. almost of this year

So prepaying we as cash we the have are flow.

ahead And so little of we bit schedule. a are our

Joseph Osha

to Meeting deck still, vein, leverage operating here on X% from right you this that coming you're X% looking from And talked XXXX. revenue some X% at the at Day into actually cash clearly Analyst Okay. now. slide And about your at free of I'm

revenue seems up X% that yield thinking be percentage X% cash that a a of to free free like -- me again maybe So it realistically as analysts ought that's in shows of kind to to XXXX? number cash number or flow flow

Joan Hooper

updated any Well, again, from I Investor don't numbers have Day.

give we through there cash that 'XX. at will estimates the February. the outflows why So best guidance put probably restructuring. of time 'XX with on XXXX was somewhat XXXX in the had dependent some and there will sizable the out be associated the amount we It's we in cash still getting in numbers a because That's

X% now I for as is think best update to X% closer. it and we So get number the we will

Joseph Osha

as the looking seems deployments product and there's a at strategy? that's that one areas Okay. wondering of line And here as these in I'm where well comment happening what's how completely it resilience. are then if out lot gears, shifting Florida on sensors. how into you potential of for Tom, can fits your like and going,

Tom Deitrich

and Coast on. see have worried or well worried Good to application Left what's We help are itself hurricanes you grid those definitely going deeper to tilt about question. equally real full a technologies applies wildfires that you're see into about line of the interest if both you as lot for or Coast Right sensors on extent -- a certain of in to sensors

which So messages are message to type we line for last for like outage houses sensors full for interest applications types connected almost customers that see you of tilt on a which can gasp the or mapping transformers. see transformer part sensors of of our

grid overall So the whose to of an lights insight distribution as out to as kind itself. type outage application of in automation help scenario into turn if going DA with management the you did have are out and well lights

us, a area fruitful bit. can an help I bullish we can to that think apply on. good we It's have our quite some area really a technology be So, we for where customers

Joseph Osha

you ever canopy? tilt them your just plugging me. guys And out a Would you let that's Or it radio be would rather and invest the fight just for and as Company sensor solutions? of there. into quickly Just in it follow-up one the the hardware the

questions. the Sorry all for

Tom Deitrich

that worries. on I of on talked seamless No with things the be it depends ourselves solution that that customer. to we I volumes say question. do rely that provide very partners our those we to Good these to do and solutions able would earlier associated the are a much about and parts some there's

and it's provide think our mixed a I part technology and bag solution. that be cost-effective strategy continued the would So a of leverage the most to best reliable is

Operator

take We'll from with Stephens Robert Inc. question our go next ahead. Please McCarthy

Robert McCarthy

hear me? you Can

Tom Deitrich

We can.

Joan Hooper

Rob. we hear Yes can you

Robert McCarthy

Great.

through So spoken the mention you thrown first lower and that, next? expectation do I and kind updated you your But for What guess I your if have while have for number modeling cost question you is to recently extend refinanced on the purposes financial you expense apologize XXXX. for that side may this the credit and out. this agreement is interest to is did of year

Joan Hooper

have February, call. will pretty give that end February, we we assumptions not very the Yes, actually it's the on of you guidance around provided immaterial we XXXX immaterial that But give QX. it's sure. in When interest for in

Robert McCarthy

what's are see so of anything automation Or kind or then of crisis intervention in on California next investment? even and rate would the perspective kind And couple from this you going obviously in over that more just right. All expect change headline year going do federal and to the will political guess of in we we a then. grid the I given but questions in are is broader methodology seeing? in suggest seem a grid mind of or maybe a that to terms of change cases will hardening anywhere some change top incentivize

Tom Deitrich

Great increasingly are that the we have of discussions what up all The grid chain question. very, itself. There's amount our a invest politics through wrapped a state-by-state to customers things that towards the with translates is and at solutions see movement available technical are of that in I It's into fair politics still certainly we the hopeful interest fair side the there. of a this. in on that that turning of very in and definitely state regulators I level dependent. amount these technologies. into the regulator hardening entire see are

are when of some It And from more of they amount those invest is a that disaster preparation are dependent locations than and how done the upfront. ahead events. curve So hits that and willing recover locations actually others. had very to much utilities quickly see types individual can on of the you investment

for takes level everyone to hoping that catalyst that to service So a the the only notice we to consumer. continuing improve I'm and that's of that provide

Robert McCarthy

I guess you feel to finally could around about do how of or about that? some your actions you And it? you progress there's facility just restructuring on and how the and comments you're and footprint thinking the actions and reduction feel amplify more do like qualitatively otherwise

Joan Hooper

happy Yes be to I'd do that.

manufacturing a we that talked million So about for years if restructuring have of savings. you a focused about $XX plan go back and XXXX of couple footprint now now was primarily on U.S. a

might cash are in There of a but tiny outflow that. still be with already essentially coming done. savings done essentially XXXX bit are just the We

about And so one. we will that stop talking

$XX piece The announced we million. the Spring second big which at was synergies Silver

is done essentially with be will of which We well year that schedule. this ahead

the $XX minimum million year XXXX. million $XX end of done we had through of So through the last $XX will be done million

over is year a longer a through is is The plan done. the bit stages. maybe next remaining and takes process. in spill the really It So restructuring into get beginning approval Europe that little some essentially to plan the really XXXX footprint but of around in normal the just this one restructuring lot

the have remainder and we end course take 'XX the by year the 'XX XX% realized of of so this both will probably of will over And to the savings and about achieve.

through already the My So improvement is from full of estimate which in for in total, $XX year there's quite is bit of restructuring. XX% QX. million. year-over-year about the a numbers

XX% works maybe the So year more if amount that loaded. XX% you it's it's the $XX expect roughly much million, that about we COGS think for the OpEx. front-end how Of

of little So bit you color. that a gives

Operator

And take Associates. we Pavel our will Please with from Raymond Molchanov question ahead. last James & go

Pavel Molchanov

Thanks the question. taking for

I'm standpoint effect in for on how course a of of structure. that distributed dimensions the relatively wildfire and crisis small can creating of affecting millions a more more we've seen the places a millions one this California? the of on people the event cascading distributed Another you what's from is of which one a like have kind and Itron's advantages of the curious decentralizing solution shows of grid grid

Tom Deitrich

Right. Good question.

or technologies bear to their understand grid are the certainly local on in understanding We what of inside do to would automation monitoring of to ability to for reroute have where to So outage environment. switching a so that we kind cases power capabilities that would your around an definitely the storage. be is monitor distribution of bring assets

case So or consumer manage that a flowing intelligence do and able monitor so solar could understanding grid it you be somewhere micro how level through and distributed the is have to the batteries do at that energy to understand the association we system the or at of top you of level the can for example itself. roof on

efficiency worth energy switching with one the load And at optimize out sort can load the demand and last think I a the of use help switching is mentioning understanding you of do energy to of grid program some kind least DR best response or that's a where again itself.

utilization and well. and manage to in are that to also combined toolbox things your type got so the best those belong supply of demand better the that in generation as tools all different you've match have the of grid complexity So assets of

faced So, all that we that have are extremely interesting to customers challenges. of that those would those are with are techniques

Pavel Molchanov

like announcement an reseller agreement or any to past of for curious on lighting you're opportunities street I heard not have back if value any in XX helpful. lights. to of XX to we global that you that's whether acceleration terms in about additional slice TerraGo with made want or the feels It matter seeing of street back many September a smart Okay kind And go from announcements else that the Itron chain. anybody months. XX over I'm also

Tom Deitrich

Also a albeit they the that good in and We forward. our but see in growing we are of segment I'll terms it's say a number smaller today today size question, have of continue in total in go increase street XX% small the to year-over-year. business books about that but deals light

that we would themselves out part also and of for look nature. is plenty So that global the deals it's at, good in there interesting see growth about we this interest increased

to certainly countries Asia America well. So Scandinavia is at look a Europe, as North various in interest in interesting in take in

think notice in why it's would nature you really growth and of have, little we isn't take smaller that's good than we to of in for a the deals from would that the sizes side, So those smaller talk in probably general ones some deal it on interestingm about big not some our because that bit headlines in this talk these about call less that it be us tend AMI calls. just I

Operator

And that closing Deitrich like question-and-answer Tom call for over the to I'd today's back turn any concludes session. to remarks. additional or

Tom Deitrich

you Thank call. all joining for the

Thank pleased the updating out, a As We're beginning of we've XXXX. very quarter progress think our momentum focused the all. into the after had results. year we the you full through forward seen solid that through to quarter. year and fourth started with maintaining you we quarter We we on the look on fourth

Operator

afternoon. this available conference today's of replay audio an be will There

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call. your This concludes today's participation. you Thank conference for

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Itron (ITRI) 4 Nov 192019 Q3 Earnings call transcript