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Itron Itron Announces First Quarter 2021 Financial Results May 3 , 2021 LIBERTY LAKE , Wash .-- ( BUSINESS WIRE ) -- May 3 , 2021-- Itron , Inc. ( NASDAQ : ITRI ) announced today financial results for its first quarter ended March 31 , 2021. Key results for the quarter include ( compared with the first quarter of 2020 ) : • Revenue of $ 520 million , compared with $ 598 million ; • Gross margin of 32.2 % ; compared with 28.7 % ; • GAAP net income of $ 13 million , compared with $ 9 million ; • GAAP diluted earnings per share ( EPS ) of $ 0.30 , compared with $ 0.21 ; • Non - GAAP diluted EPS of $ 0.52 , compared with $ 0.57 ; Adjusted EBITDA of $ 50 million , compared with $ 52 million ; • Free cash flow of $ 39 million , compared with $ 6 million ; and • Total backlog of $ 3.4 billion , compared with $ 3.0 billion . " Overall , I am pleased with our ability to execute in what continues to be a challenging environment , " said Tom Deitrich , Itron's president and chief executive officer . " While we are continuing to see improvement , business headwinds are likely to persist through the first half of the year . " Summary of First Quarter Consolidated Financial Results ( All comparisons made are against the prior year period unless otherwise noted ) Revenue Total first quarter revenue decreased 13 % to $ 520 million , or 16 % , excluding the impact of changes in foreign currency exchange rates . The decrease was primarily due to the timing of customer projects , which continued to be impacted by COVID - 19 . Device Solutions revenue decreased 15 % , Networked Solutions revenue decreased 15 % and Outcomes revenue increased 6 % . Gross Margin Consolidated company gross margin of 32.2 % increased 350 basis points from the prior year , primarily due to favorable product and solutions mix and operational efficiencies . Operating Expenses and Operating Income GAAP operating expenses of $ 136 million decreased $ 9 million from the prior year , and non - GAAP operating expenses of $ 128 million decreased $ 5 million from the prior year . The decreases were primarily due to continued discipline in discretionary spending . GAAP operating income of $ 31 million was $ 5 million higher than the prior year due to lower operating expenses . Non - GAAP operating income of $ 39 million was in line with the prior year with lower revenue offset by a reduction in non - GAAP operating expenses . Net Income and Earnings per Share Net income attributable to Itron , Inc. for the quarter was $ 13 million , or $ 0.30 per diluted share , an increase from net income of $ 9 million , or $ 0.21 per diluted share in 2020. The increase was driven by higher GAAP operating income in the current period and a lower GAAP effective tax rate . Non - GAAP net income , which excludes certain charges including amortization of intangible assets , amortization of debt placement fees , debt extinguishment , restructuring , loss on sale of business , corporate transition cost , acquisition and integration related expenses and the income tax effect of those adjustments , was $ 22 million , or $ 0.52 per diluted share , compared with $ 23 million , or $ 0.57 per diluted share , in 2020. The lower year - over - year results were due in part to a higher non - GAAP effective tax rate . Cash Flow Net cash provided by operating activities was $ 50 million in the first quarter compared with $ 19 million in the same quarter of 2020. Free cash flow was $ 39 million in the first quarter compared with $ 6 million in the prior year . The year over year improvement in cash flow was due in part to lower variable compensation payments in 2021 . Other Measures Total backlog was $ 3.4 billion and 12 - month backlog was $ 1.3 billion , compared with $ 3.0 billion and $ 1.3 billion , respectively , in the prior year . Bookings in the quarter totaled $ 688 million . Impact of First Quarter Capital Markets Transactions During the first quarter , Itron completed convertible note and equity offerings to accelerate de - levering and improve strategic and balance sheet flexibility . The completion of these transactions and use of proceeds resulted in changes to the average diluted shares outstanding and interest expense expected for the full year , which impact our non - GAAP EPS guidance range provided on February 24 , 2021 . On February 24 , 2021 , Itron provided full year 2021 non - GAAP EPS guidance in a range of $ 2.15 to $ 2.55 , with a midpoint of $ 2.35 . That guidance assumed diluted weighted average shares outstanding of approximately 41 million and non - GAAP interest expense of approximately $ 36 million . Restating that guidance for the impact of the capital markets transactions results in an increase of Non - GAAP EPS expectations of approximately $ 0.15 per share . This assumes diluted weighted average shares outstanding of 44.7 million and non - GAAP interest expense of approximately $ 16 million . The resulting restated non - GAAP EPS range for 2021 is $ 2.30 to $ 2.70 , with a midpoint of $ 2.50 per share .