Itron Predicts Loss For Second Quarter

Itron Inc. Tuesday reported a slightly profitable first quarter, but President Johnny Humphries predicted a second-quarter loss based on a slowdown in orders.

The maker of automatic meter-reading systems for utilities earned $153,000, or 1 cent per share, on revenues of $63.7 million in the quarter ended March 31.

During the same quarter last year, Itron registered a loss of $3.3 million, or 24 cents per share. Revenues were $40.6 million.

Though an improvement over last year, first-quarter results were below those for the final quarter of 1997.

Humphries said a shrinking backlog and significantly lower new-order bookings will likely produce a loss during the second quarter.

The backlog at quarter’s end was $116 million, up from $103 million on March 31, 1997, but down from $145 million at the end of 1997.

Humphries said customers are delaying deliveries Itron expected to ship in the second quarter.

Uncertainties stemming from deregulation remain a stumbling block to order activity, he said, noting that one potential customer had postponed action because of the confusion.

Humphries said the market environment will limit Itron performance for the rest of 1998 to just a slight gain over 1997.

“While this causes us challenges and concerns in the short-term, we retain our confidence in the fundamentals of the AMR business,” he said.

Spokeswoman Mima Scarpelli said brokerage analysts had anticipated profits of around 65 cents per share for the company this year. “We will be well below that,” she said.

Humphries said Itron would test the market for Itron’s technology outside the utility industry in a bid to expand the company’s business.

Those ventures will be small-scale, and mainly in Europe, Scarpelli said.

Itron employs 1,200, about half at its Spokane Valley headquarters.

Itron’s earnings were released after the close of the market Tuesday. The company’s stock had closed the day at $20.62, up 69 cents.