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Itron Itron Announces Third Quarter 2021 Financial Results November 4 , 2021 LIBERTY LAKE , Wash .-- ( BUSINESS WIRE ) -- Nov . 4 , 2021-- Itron , Inc. ( NASDAQ : ITRI ) announced today financial results for its third quarter ended Sept. 30 , 2021. Key results for the quarter include ( compared with the third quarter of 2020 ) : • Revenue of $ 487 million , compared with $ 540 million ; • Gross margin of 27.7 % ; compared with 26.5 % ; • GAAP net loss of $ ( 2 ) million , compared with $ ( 25 ) million ; • GAAP loss per share ( EPS ) of $ ( 0.04 ) , compared with $ ( 0.63 ) ; • Non - GAAP diluted EPS of $ 0.21 , compared with $ 0.61 ; • Adjusted EBITDA of $ 26 million , compared with $ 40 million ; • Free cash flow of $ 11 million compared with $ 38 million ; and • Total backlog of $ 3.4 billion , compared with $ 2.8 billion . " Despite the current component constraints that gated our third quarter results , we have been diligently executing on our strategy to drive stronger results as macro supply challenges abate , " said Tom Deitrich , Itron's president and chief executive officer . " Since our Investor Day on October 5 , 2021 , we announced the acquisition of SELC , growing our smart city and smart lighting solutions business . And yesterday , we announced a definitive agreement to sell our European Commercial and Industrial mechanical gas meter business ; our gas stations metering and pressure regulation business ; and our global gas regulator business . In conjunction with the sale , we have announced a restructuring project that drives reductions in certain locations and functional support areas . " Summary of Third Quarter Consolidated Financial Results ( All comparisons made are against the prior year period unless otherwise noted ) Revenue Total third quarter revenue decreased 10 % to $ 487 million , or 11 % , excluding the impact of changes in foreign currency exchange rates . The decrease was primarily due to component constraints , which reduced revenue by approximately $ 100 million . Device Solutions revenue decreased 14 % and Networked Solutions revenue decreased 10 % with the majority of the decline due to component constraints in the quarter . Outcomes revenue increased 5 % . Gross Margin Consolidated company gross margin of 27.7 % increased 120 basis points from the prior year , primarily due to favorable product mix . Operating Expenses and Operating Income GAAP operating expenses of $ 131 million decreased $ 36 million from the prior year , primarily due to lower restructuring expenses . Non - GAAP operating expenses of $ 119 million increased $ 5 million from the prior year primarily due to higher sales , general and administrative expenses , which includes higher variable compensation . GAAP operating income of $ 4 million was $ 28 million higher than the prior year primarily due to lower operating expenses . Non - GAAP operating income of $ 16 million was $ 13 million lower than last year due to lower revenue and higher variable compensation . Net Income ( loss ) and Earnings per Share The net loss attributable to Itron , Inc. for the quarter was $ ( 2 ) million , or $ ( 0.04 ) per diluted share , an improvement from a net loss of $ ( 25 ) million , or $ ( 0.63 ) per diluted share in 2020. The improvement was driven by GAAP operating income in 2021 and lower interest expense , partially offset by a higher GAAP 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 , and the income tax effect of those adjustments , was $ 9 million , or $ 0.21 per diluted share , compared with $ 25 million , or $ 0.61 per diluted share , in 2020. The lower year over year results were due to lower non - GAAP operating income and a higher non - GAAP effective tax rate due to fewer discrete benefits in the period . Cash Flow Net cash provided by operating activities was $ 18 million in the third quarter compared with $ 45 million in the same quarter of 2020. Free cash flow was $ 11 million in the third quarter compared with $ 38 million in the prior year . The year over year decrease in cash flow was primarily due to reduced non - GAAP EBITDA and lower cash inflows from working capital . Other Measures Total backlog was $ 3.4 billion and 12 - month backlog was $ 1.4 billion , compared with $ 2.8 billion and $ 1.1 billion , respectively , in the prior year . Bookings in the quarter totaled $ 395 million . Share Repurchase Program On November 1 , 2021 , the Board of Directors at Itron authorized a new share repurchase program of up to $ 100 million of Itron's common stock over an 18 - month period . Repurchases under the program will be made in the open market in accordance with applicable securities laws .