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Itron lowers 2018 revenue forecast amid backlog for electronic components

UPDATED: Tue., Nov. 6, 2018

 (Philip Mezey, Itron’s president and CEO, in a file photo.)
(Philip Mezey, Itron’s president and CEO, in a file photo.)

An industrywide backlog for electronic components will cast a shadow on Itron Inc.’s 2018 revenue.

The Liberty Lake-headquartered company revised its annual revenue expectations on Monday, citing both higher costs and longer delivery times for products that include capacitors, conductors and resistors.

The new revenue projections are in the $2.370 billion to $2.390 billion range for the year, down from earlier expectations of $2.425 billion to $2.475 billion.

Company officials are working to “mitigate these cost headwinds,” Philip Mezey, Itron’s president and CEO, told analysts during a conference call. However, “extended lead times and component shortages are now impacting our top line, resulting in lower revenue guidance.”

Itron’s products and services help customers in more than 100 countries measure and control their water and energy use. Utilities and cities are among their clients.

Itron completed the $830 million purchase of competitor Silver Spring Networks, of San Jose, California, in January. Silver Spring Networks works globally in the smart utility and smart city sectors.

Mezey said supply chain issues should “subside somewhat” in 2019. Meanwhile, company officials are working on internal cost control measures and inventory management to reduce the effect on customers, he said.

Itron on Monday reported third quarter income of $20 million, or 50 cents per share, on revenues of $596 million. For the third quarter of 2017, the company reported income of $26 million, or 65 cents per share, on revenues of $486.7 million.

Also during the third quarter, Itron paid down $90 million in debt.

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