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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
June 17, 2003
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(Date of Report)
ITRON, INC.
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(Exact Name of Registrant as Specified in Charter)
Washington 000-22418 91-1011792
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(State or Other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation) Identification No.)
2818 N. Sullivan Road, Spokane, WA 99216
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(Address of Principal Executive Offices, including Zip Code)
(509) 924-9900
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(Registrant's Telephone Number, Including Area Code)
None
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(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements and Exhibits. The following item is attached
as an exhibit hereto:
(c) Exhibits.
Exhibit No. 99.1 Press Release dated June 17, 2003
Item 9. Regulation FD Disclosure (Information provided pursuant to Item 12)
On June 17, 2003, Itron, Inc. issued a press release regarding an update on
patent infringement litigation. A copy of this press release is attached as
Exhibit 99.1.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ITRON, INC.
Dated: June 17, 2003 By: /s/ DAVID G. REMINGTON
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David G. Remington
Vice President and Chief Financial Officer
Itron Issues Update on Patent Infringement Litigation
Court Issues Order On Two Outstanding Issues
SPOKANE, Wash.--(BUSINESS WIRE)--June 17, 2003--Itron, Inc. (Nasdaq:ITRI)
today reported that the United States District Court, District of Minnesota, has
issued an Order addressing two outstanding issues in the Benghiat patent
litigation.
In December 2002, a jury in Minneapolis returned a verdict against Itron and
found that Itron's manual entry handheld meter reading devices infringed a
patent owned by Ralph Benghiat, an individual. The jury awarded Benghiat damages
of $7.4 million and determined that Itron's infringement was willful. Itron
recorded a $7.4 million pre-tax charge for the amount of the jury's award in
2002.
The Court subsequently requested briefs from both parties addressing (1)
whether and to what extent the Court should award increased damages for the
finding of willful infringement and (2) the parties' motions for judgment on the
issue of laches. During the trial, Itron filed a motion under the doctrine of
laches, claiming that Mr. Benghiat waited too long before accusing Itron of
infringing his patent and therefore the period for damages should not start
until April 1999, the date Mr. Benghiat first claimed that Itron's products
infringed.
Under the Court's Order dated June 16, 2003, the Court found insufficient
evidence to warrant enhanced damages in excess of the jury's award and denied
Benghiat's demand for enhanced damages. The Court also denied Itron's motion to
shorten the period of damages under the laches doctrine.
The Court Order also specifies that other post-trial motions must be filed
within ten days, and responses to post-trial motions must be filed within ten
days after that. Final judgment in this matter will be entered after the Court's
ruling on post-trial motions.
Itron continues to believe that its products do not infringe the Benghiat
patent and may file additional post trial motions, as well as appeal any final
judgment by the Court. Appeals of the Court's final judgment must be made within
30 days of the judgment to the Federal Circuit Court of Appeals in Washington
D.C. Payment of the final judgment award, after the posting of an appropriate
bond, would not be due until any appeals have run their course, which we
estimate would take approximately 18 to 24 months.
About Itron:
Itron is a leading technology provider and critical source of knowledge to
the global energy and water industries. More than 2,800 utilities worldwide rely
on Itron technology to deliver the knowledge they require to optimize the
delivery and use of energy and water. Itron delivers value to its clients by
providing industry-leading solutions for meter data collection, energy
information management, demand side management and response, load forecasting,
analysis and consulting services, transmission and distribution system design
and optimization, Web-based workforce automation, commercial and industrial
customer care and residential energy management.
Caution concerning forward-looking statements:
This release contains forward-looking statements concerning Itron that may
affect our financial performance. These statements reflect the Company's current
plans and expectations and are based on information currently available to it.
They rely on a number of assumptions and estimates, which could be inaccurate,
and which are subject to risks and uncertainties that could cause the Company's
actual results to vary materially from those anticipated. Risks and
uncertainties include the inability to predict the outcome of appeals or any
negotiation efforts associated with the Benghiat litigation and estimating costs
associated with litigation defense, and other factors which are more fully
described in the Company's Annual Report on Form 10-K for the year ended
December 31, 2002 and Forms 10-Q for 2003 on file with the Securities and
Exchange Commission. Itron undertakes no obligation to update publicly or revise
any forward-looking statements.
CONTACT: Itron, Inc., Spokane
Mima Scarpelli, 509/891-3565
mima.scarpelli@itron.com