LIBERTY LAKE, Wash.--(BUSINESS WIRE)--
Itron, Inc. (NASDAQ:ITRI) announced today that it has delayed the filing
of its Form 10-K for the year ended Dec. 31, 2015 beyond the March 15,
2016 extended filing due date.
As previously disclosed by the Company in its Form 12b-25 filed with the
Securities and Exchange Commission on Feb. 29, 2016, Itron is completing
a review of revenue recognition on certain contracts for which the
Company has not been able to demonstrate Vendor Specific Objective
Evidence of fair value for maintenance associated with certain software
solutions for the year ended Dec. 31, 2015, as well as deficiencies in
its revenue processes and controls. The Company's management and the
Audit Committee of the Board of Directors have concluded that a more
comprehensive review of software and maintenance contracts for 2015 and
prior years is needed and, as a result, additional time will be required
to complete the analysis. Once the Company completes its analysis, it
will work with its independent auditor, Ernst & Young LLP, on these
matters to conclude its review as soon as reasonably practicable.
"This review involves the timing of software and related implementation
revenue recognized between periods and we expect no impact on cash or
cash earnings generation," said Philip Mezey, Itron's president and
chief executive officer. "It is important that we take the time
necessary to fully complete our detailed analysis and process
documentation. As software is becoming an increasingly important part of
Itron's business, we are addressing these technical accounting issues as
quickly as possible, and we remain committed to strengthening our
revenue processes and providing accurate and transparent financial
reporting."
As a result of the filing delay, Itron expects to receive a notice from
The Nasdaq Stock Market ("NASDAQ") indicating that it is not currently
in compliance with NASDAQ Listing Rule 5250(c)(1). Under NASDAQ Listing
Rules, the Company expects to be granted 60 calendar days to submit a
plan to NASDAQ to regain compliance with the Listing Rules by filing its
Form 10-K for the year ended Dec. 31, 2015. If the plan is accepted,
NASDAQ can grant an exception of up to 180 calendar days for the Company
to regain compliance. Itron believes that this notice and the Company's
non-compliance with NASDAQ Listing Rule 5250(c)(1) will have no
immediate effect on the listing or trading of Itron's common stock on
the NASDAQ Global Select Market.
Itron also announced that, on March 11, 2016, it formally engaged
Deloitte & Touche LLP (Deloitte) as the Company's independent registered
public accounting firm for the year ending Dec. 31, 2016. The selection
of Deloitte by the Company's management and the Audit Committee of the
Board of Directors was previously reported in the Company's Form 8-K,
dated September 11, 2015.
About Itron
Itron is a world-leading technology and services company dedicated to
the resourceful use of energy and water. We provide comprehensive
solutions that measure, manage and analyze energy and water. Our broad
product portfolio includes electricity, gas, water and thermal energy
measurement devices and control technology; communications systems;
software; as well as managed and consulting services. With thousands of
employees supporting nearly 8,000 customers in more than 100 countries,
Itron applies knowledge and technology to better manage energy and water
resources. Together, we can create a more resourceful world. Join us: www.itron.com.
Itron® is a registered trademark of Itron, Inc.
Forward-Looking Statements
This release contains forward-looking statements concerning our
expectations about operations, financial performance, sales, earnings
and cash flows. These statements reflect our current plans and
expectations and are based on information currently available. The
statements rely on a number of assumptions and estimates, which could be
inaccurate, and which are subject to risks and uncertainties that could
cause our actual results to vary materially from those anticipated.
Risks and uncertainties include the rate and timing of customer demand
for our products, rescheduling of current customer orders, changes in
estimated liabilities for product warranties, changes in laws and
regulations, our dependence on new product development and intellectual
property, future acquisitions, changes in estimates for stock-based and
bonus compensation, increasing volatility in foreign exchange rates,
international business risks and other factors that are more fully
described in our Annual Report on Form 10-K for the year ended December
31, 2014 and other reports on file with the Securities and Exchange
Commission. Itron undertakes no obligation to update publicly or revise
any forward-looking statements, including our business outlook.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160315006731/en/
Itron, Inc.
Barbara Doyle, 509-891-3443
Vice President,
Investor Relations
or
Marni Pilcher, 509-891-3847
Director,
Investor Relations
Source: Itron, Inc.
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