Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | ITERIS, INC. | |
Entity Central Index Key | 0000350868 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,490,358 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 15,234 | $ 7,071 |
Short-term investments | 20,189 | 1,935 |
Trade accounts receivable, net of allowance for doubtful accounts of $546 and $539 at June 30, 2019 and March 31, 2019, respectively | 16,479 | 16,929 |
Unbilled accounts receivable | 6,755 | 6,487 |
Inventories | 2,389 | 2,916 |
Prepaid expenses and other current assets | 1,675 | 1,367 |
Total current assets | 62,721 | 36,705 |
Property and equipment, net | 1,883 | 1,965 |
Right-of-use assets, net | 12,992 | |
Intangible assets, net | 3,255 | 3,286 |
Goodwill | 15,150 | 15,150 |
Other assets | 954 | 849 |
Total assets | 96,955 | 57,955 |
Current liabilities: | ||
Trade accounts payable | 8,518 | 9,441 |
Accrued payroll and related expenses | 8,023 | 6,536 |
Accrued liabilities | 3,540 | 2,370 |
Deferred revenue | 4,491 | 4,883 |
Total current liabilities | 24,572 | 23,230 |
Deferred rent | 455 | |
Lease liabilities | 12,144 | |
Deferred income taxes | 65 | 65 |
Unrecognized tax benefits | 152 | 150 |
Total liabilities | 36,933 | 23,900 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $1.00 par value: Authorized shares - 2,000 Issued and outstanding shares - none | ||
Common stock, $0.10 par value: Authorized shares - 70,000 at June 30, 2019 and March 31, 2019 Issued and outstanding shares - 39,620 at June 30, 2019 and 33,377 at March 31, 2019 | 3,962 | 3,338 |
Additional paid-in capital | 169,175 | 142,260 |
Accumulated deficit | (113,115) | (111,543) |
Total stockholders' equity | 60,022 | 34,055 |
Total liabilities and stockholders' equity | $ 96,955 | $ 57,955 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Consolidated Balance Sheets | ||
Trade accounts receivable, allowance for doubtful accounts (in dollars) | $ 546 | $ 539 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares | 2,000,000 | 2,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized shares | 70,000,000 | 70,000,000 |
Common stock, issued shares | 39,620 | 33,377 |
Common stock, outstanding shares | 39,620 | 33,377 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenues | $ 26,607,000 | $ 25,475,000 |
Total cost of revenues | 16,200,000 | 15,283,000 |
Gross profit | 10,407,000 | 10,192,000 |
Operating expenses: | ||
Selling, general and administrative | 10,068,000 | 9,630,000 |
Research and development | 1,844,000 | 2,089,000 |
Amortization of intangible assets | 66,000 | 65,000 |
Total operating expenses | 11,978,000 | 11,784,000 |
Operating loss | (1,571,000) | (1,592,000) |
Non-operating income (expense): | ||
Other income (expense), net | (10,000) | 15,000 |
Interest income, net | 33,000 | 39,000 |
Loss from operations before income taxes | (1,548,000) | (1,538,000) |
Provision for income taxes | (24,000) | (41,000) |
Net loss | $ (1,572,000) | $ (1,579,000) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Shares used in basic per share calculations (in shares) | 34,268 | 33,201 |
Shares used in diluted per share calculations (in shares) | 34,268 | 33,201 |
Product | ||
Total revenues | $ 14,517,000 | $ 11,918,000 |
Total cost of revenues | 8,495,000 | 6,494,000 |
Service | ||
Total revenues | 12,090,000 | 13,557,000 |
Total cost of revenues | $ 7,705,000 | $ 8,789,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (1,572,000) | $ (1,579,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Right-of-use assets non-cash expense | 423,000 | |
Deferred income taxes | 2,000 | 2,000 |
Depreciation of property and equipment | 198,000 | 265,000 |
Stock-based compensation | 602,000 | 522,000 |
Amortization of intangible assets | 247,000 | 265,000 |
Changes in operating assets and liabilities, net of effects of discontinued operation: | ||
Accounts receivable | 450,000 | (3,662,000) |
Unbilled accounts receivable and deferred revenue, net | (660,000) | (944,000) |
Inventories | 527,000 | 125,000 |
Prepaid expenses and other assets | (413,000) | (35,000) |
Accounts payable, accrued expenses, and other liabilities | 8,000 | 3,015,000 |
Net cash used in operating activities | (188,000) | (2,026,000) |
Cash flows from investing activities | ||
Purchases of property and equipment | (116,000) | (229,000) |
Purchases of investments | (20,179,000) | (3,705,000) |
Maturities of investments | 1,925,000 | 357,000 |
Capitalized software development costs | (216,000) | (82,000) |
Net proceeds from sale of discontinued operation | 107,000 | |
Net cash used in investing activities | (18,586,000) | (3,552,000) |
Cash flows from financing activities | ||
Proceeds from stock option exercises | 14,000 | 41,000 |
Proceeds from ESPP purchases | 172,000 | 165,000 |
Proceeds from issuance of common stock, net of costs | 26,751,000 | |
Net cash provided by financing activities | 26,937,000 | 206,000 |
Increase (decrease) in cash and cash equivalents | 8,163,000 | (5,372,000) |
Cash and cash equivalents at beginning of period | 7,071,000 | 10,152,000 |
Cash and cash equivalents at end of period | 15,234,000 | 4,780,000 |
Supplemental cash flow information: | ||
Cash paid during the period for: Income taxes | 42,000 | $ 49,000 |
Supplemental schedule of non-cash investing and financing activities: | ||
Lease liabilities arising from obtaining right-of-use assets | $ 43,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Mar. 31, 2018 | $ 3,318 | $ 139,722 | $ (103,519) | $ 39,521 |
Balance (in shares) at Mar. 31, 2018 | 33,186 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Adoption of ASU 2014-09 (see Note 1) | (208) | (208) | ||
Stock option exercises | $ 2 | 39 | 41 | |
Stock option exercises (in shares) | 17 | |||
Issuance of shares pursuant to Employee Stock Purchase Plan | $ 4 | 161 | 165 | |
Issuance of shares pursuant to Employee Stock Purchase Plan (in Shares) | 36 | |||
Stock-based compensation | 522 | 522 | ||
Net loss | (1,579) | (1,579) | ||
Balance at Jun. 30, 2018 | $ 3,324 | 140,444 | (105,306) | 38,462 |
Balance (in shares) at Jun. 30, 2018 | 33,239 | |||
Balance at Mar. 31, 2019 | $ 3,338 | 142,260 | (111,543) | $ 34,055 |
Balance (in shares) at Mar. 31, 2019 | 33,377 | 33,377 | ||
Increase (Decrease) in Stockholders' Equity | ||||
Stock option exercises | $ 1 | 13 | $ 14 | |
Stock option exercises (in shares) | 10 | |||
Issuance of shares pursuant to Employee Stock Purchase Plan | $ 5 | 167 | 172 | |
Issuance of shares pursuant to Employee Stock Purchase Plan (in Shares) | 48 | |||
Stock-based compensation | 602 | 602 | ||
Issuance of shares pursuant to vesting of restricted stock units, net of payroll withholding taxes (in shares) | 2 | |||
Issuance of common stock in connection with public offering | $ 618 | 26,133 | 26,751 | |
Issuance of common stock in connection with public offering(in shares) | 6,183 | |||
Net loss | (1,572) | (1,572) | ||
Balance at Jun. 30, 2019 | $ 3,962 | $ 169,175 | $ (113,115) | $ 60,022 |
Balance (in shares) at Jun. 30, 2019 | 39,620 | 39,620 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business Iteris, Inc. (referred to collectively with its wholly‑owned subsidiary, ClearAg, Inc., in this report as “Iteris”, the “Company”, “we”, “our”, and “us”) is a provider of essential applied informatics that enable smart transportation and digital agriculture. Municipalities, government agencies, crop science companies, agriculture service providers and other agribusinesses use our solutions to make roads safer and travel more efficient, as well as farmlands more sustainable, healthy and productive. As a pioneer in intelligent transportation systems (‘‘ITS’’) technology for more than two decades, our intellectual property, products, software-as-a-service (‘‘SaaS’’) offerings and weather forecasting systems offer a comprehensive range of ITS solutions to our customers throughout the U.S. and internationally. In the digital agriculture market, we have combined our intellectual property with enhanced atmospheric, land surface and agronomic modeling techniques to offer smart content and analytic solutions that provide analytical support to large enterprises in the agriculture industry, such as seed and crop protection companies, integrated food companies, and agricultural equipment manufacturers and service providers. We believe our products, solutions and services improve and safely optimize mobility within our communities, while minimizing environmental impact on roads and lands. We continue to make significant investments to leverage our existing technologies and further expand both our advanced detection sensors and performance analytics systems in the transportation infrastructure market, while supporting the agriculture market with our smart content and digital agriculture platform, and always exploring strategic alternatives intended to optimize the value of all of our businesses. Iteris was incorporated in Delaware in 1987 and has operated in its current form since 2004. Recent Developments On June 13, 2019, the Company completed an underwritten public offering of 6,182,797 shares of the Company’s common stock for net proceeds to the Company of approximately $26.8 million, after deducting underwriting discounts and estimated offering expenses payable by the Company. The Company used approximately $6,185,000 of the net proceeds of this offering to pay the cash portion of the purchase price in the acquisition of Albeck Gerken, Inc. (“AGI”), a privately-held professional transportation engineering services firm headquartered in Tampa, Florida (see Note 11, Subsequent Event), and plans to use the balance of the net proceeds for general corporate purposes and possibly for other future acquisitions. Basis of Presentation Our unaudited consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary, and have been prepared in accordance with the rules of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting, which permit certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“GAAP”) to be condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2019 (“Fiscal 2019”), filed with the SEC on June 6, 2019. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three month period ended June 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2020 (“Fiscal 2020”) or any other periods. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in the preparation of the consolidated financial statements include revenue recognition, the collectability of accounts receivable and related allowance for doubtful accounts, projections of taxable income used to assess realizability of deferred tax assets, warranty reserves and other contingencies, costs to complete long-term contracts, indirect cost rates used in cost plus contracts, the valuation of inventories, the valuation of purchased intangible assets and goodwill, the valuation of investments, estimates of future cash flows used to assess the recoverability of long-lived assets and the impairment of goodwill, and fair value of our stock option awards used to calculate stock-based compensation. Revenue Recognition Revenues are recognized when control of the promised goods or services are transferred to our customers, in a gross amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We generate all of our revenue from contracts with customers. Product revenue related contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short-term in nature. Product revenue is recognized at a point in time upon shipment or upon customer receipt of the product, depending on shipping terms. The Company determined that this method best represents the transfer of goods as transfer of control typically occurs upon shipment or upon customer receipt of the product. Service revenues, primarily derived from the Transportation Systems and Agriculture and Weather Analytics segments, are primarily from long-term engineering and consulting service contracts with governmental agencies. These contracts generally include performance obligations in which control is transferred over time. We recognize revenue on fixed fee contracts, over time, using the proportion of actual costs incurred to the total costs expected to complete the contract performance obligation. The Company determined that this method best represents the transfer of services as the proportion closely depicts the efforts or inputs completed towards the satisfaction of a fixed fee contract performance obligation. Time & Materials (“T&M”) and Cost Plus Fixed Fee (“CPFF”) contracts are considered variable consideration. However, performance obligations with these fee types qualify for the “Right to Invoice” Practical Expedient. Under this practical expedient, the Company is allowed to recognize revenue, over time, in the amount to which the Company has a right to invoice. In addition, the Company is not required to estimate such variable consideration upon inception of the contract and reassess the estimate each reporting period. The Company determined that this method best represents the transfer of services as, upon billing, the Company has a right to consideration from a customer in an amount that directly corresponds with the value to the customer of the Company’s performance completed to date. Service revenues also consist of revenues derived from maintenance support and the use of the Company’s service platforms and APIs on a subscription basis. We generate this revenue from fees for maintenance support, monthly active user fees, SaaS fees, and hosting and storage fees. In most cases, the subscription or transaction arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company applies a time-based measure of progress to the total transaction price, which results in ratable recognition over the term of the contract. The Company determined that this method best represents the transfer of services as the customer obtains equal benefit from the service throughout the service period. The Company accounts for individual goods and services separately if they are distinct performance obligations, which often requires significant judgment based upon knowledge of the products and/or services, the solution provided and the structure of the sales contract. In SaaS agreements, we provide a service to the customer which combines the software functionality, maintenance and hosting into a single performance obligation. In product related contracts, a purchase order may contain different products, each constituting a separate performance obligation. We generally estimate variable consideration at the most likely amount to which we expect to be entitled and in certain cases based on the expected value, which requires judgment. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. We review and update these estimates on a quarterly basis. The Company’s typical performance obligations include the following: Performance Obligation When Performance When Payment is How Standalone Product Revenues Standard purchase orders for delivery of a tangible product Upon shipment (point in time) Within 30 days of delivery Observable transactions Engineering services where the deliverable is considered a product As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach Service Revenues Engineering and consulting services As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach SaaS Over the course of the SaaS service once the system is available for use (over time) At the beginning of the contract period Estimated using a cost-plus margin approach Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into reportable segments and the nature of the products and services. See Note 10, Business Segment Information, for our revenue by reportable segment. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for goods and services as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in trade accounts receivable, net in our unaudited consolidated balance sheet at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. If warranted, the allowance is increased by the Company’s provision for doubtful accounts, which is charged against income. All recoveries on receivables previously charged off are included in income, while direct charge-offs of receivables are deducted from the allowance. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented as unbilled accounts receivable on the accompanying balance sheet. For example, we would record a contract asset if we record revenue on a professional services engagement, but are not entitled to bill until we achieve specified milestones. Our contract assets and refund liabilities are reported in a net position on a contract basis at the end of each reporting period. Refund liabilities are consideration received in advance of the satisfaction of performance obligations. Transaction Price Allocated to the Remaining Performance Obligations As of June 30, 2019, the aggregate amount of transaction price allocated to remaining performance obligations was immaterial primarily as a result of termination provisions within our contracts which make the duration of the accounting term of the contract one year or less. Deferred Revenue Deferred revenue in the accompanying unaudited consolidated balance sheets is comprised of refund liabilities related to billings and consideration received in advance of the satisfaction of performance obligations. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents consist primarily of demand deposits and money market funds maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with high quality financial institutions, and therefore are believed to have minimal credit risk. Our accounts receivable are primarily derived from billings with customers located throughout North America, as well as in Europe and South America. We generally do not require collateral or other security from our domestic customers. We maintain an allowance for doubtful accounts for potential credit losses, which losses have historically been within management’s expectations. We currently have, and historically have had, a diverse customer base. For the three months ended June 30, 2019, no individual customer represented greater than 10% of our total revenues, and for the three months ended June 30, 2018, one individual customer represented approximately 29% of our total revenues. As of June 30, 2019, and March 31, 2019, no individual customer represented greater than 10% of our total accounts receivable. Fair Values of Financial Instruments The fair value of cash equivalents, receivables, accounts payable and accrued expenses approximate carrying value because of the short period of time to maturity. Our investments are measured at fair value on a recurring basis. The framework for measuring fair value and related disclosure requirements about fair value measurements are provided in Financial Accounting Standard Board ("FASB") Accounting Standards Codification ("ASC") 820, Fair Value Measurements (“ASC 820”). This pronouncement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by ASC 820 contains three levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments with initial maturities of 90 days or less. Investments The Company’s investments are classified as either held‑to‑maturity, available‑for‑sale or trading, in accordance with FASB ASC 320 – Investments – Debt and Equity Securities. Held‑to‑maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held‑to‑maturity or trading category are classified as available‑for‑sale. Held‑to‑maturity securities are recorded at amortized cost, which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available‑for‑sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive loss as a separate component of stockholders’ equity. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available (see Note 3 – Fair Value Measurements). As of June 30, 2019, all of our investments are available‑for‑sale. Under FASB ASC 320‑10‑35, a security is considered to be other‑than‑temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other‑than‑temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive loss, net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other‑than‑temporary at each quarter‑end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near‑term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value. Allowance for Doubtful Accounts The collectability of our accounts receivable is evaluated through review of outstanding invoices and ongoing credit evaluations of our customers’ financial condition. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, we will record an allowance against amounts due, and thereby reduce the net recognized accounts receivable to the amount we reasonably believe will be collected. We also maintain an allowance based on our historical collections experience. When we determine that collection is not likely, we write off accounts receivable against the allowance for doubtful accounts Inventories Inventories consist of finished goods, work-in-process and raw materials and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful life ranging from three to eight years. Leasehold improvements are depreciated over the term of the related lease or the estimated useful life of the improvement, whichever is shorter. Goodwill and Long-Lived Assets We perform an annual qualitative assessment of our goodwill during the fourth fiscal quarter, or more frequently, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in overall industry demand, that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If events or circumstances do not indicate that the fair value of a reporting unit is below its carrying amount, then goodwill is not considered to be impaired and no further testing is required; if otherwise, we compare the fair value of our reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. We monitor the indicators for goodwill impairment testing between annual tests. As of June 30, 2019, we determined that there were no impairment indicators for goodwill. We test long-lived assets and purchased intangible assets (other than goodwill) for impairment if we believe indicators of impairment exist. We determine whether the carrying value of an asset or asset group is recoverable, based on comparisons to undiscounted expected future cash flows the asset or asset group is expected to generate. If an asset is not recoverable, we record an impairment loss equal to the amount by which the carrying value of the asset exceeds its fair value. We primarily use the income valuation approach to determine the fair value of our long lived assets and purchased intangible assets. As of June 30, 2019, there was no impairment to our long-lived and intangible assets. Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more‑likely‑than‑not that some or all of the deferred tax assets will not be realized, which increases our income tax expense in the period such determination is made. As such, as of June 30, 2019, we determined it was appropriate to record a full valuation allowance against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Stock-Based Compensation We record stock-based compensation in our unaudited consolidated statements of operations as an expense, based on the estimated grant date fair value of our stock-based awards, whereby such fair values are amortized over the requisite service period. Our stock-based awards are currently comprised of common stock options and restricted stock units. The fair value of our common stock option awards is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. While utilizing this model meets established requirements, the estimated fair values generated by it may not be indicative of the actual fair values of our common stock option awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements, as well as limited transferability. The fair value of our restricted stock units is based on the closing market price of our common stock on the grant date. If there are any modifications or cancellations of the underlying unvested stock- based awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Research and Development Expenditures Research and development expenditures are charged to expense in the period incurred. Shipping and Handling Costs Shipping and handling costs are included as cost of revenues in the period during which the products ship. Sales Taxes Sales taxes are presented on a net basis (excluded from revenues) in the unaudited consolidated statements of operations. Warranty We generally provide a one to three year warranty from the original invoice date on all products, materials and workmanship. Products sold to various original equipment manufacturer customers sometimes carry longer warranties. Defective products will be either repaired or replaced, usually at our option, upon meeting certain criteria. We accrue a provision for the estimated costs that may be incurred for product warranties relating to a product as a component of cost of sales at the time revenue for that product is recognized. The accrued warranty reserve is included within accrued liabilities in the accompanying unaudited consolidated balance sheets. We do not provide any service-type warranties. Repair and Maintenance Costs We incur repair and maintenance costs in the normal course of business. Should the repair or maintenance result in a permanent improvement to one of our leased facilities, the cost is capitalized as a leasehold improvement and amortized over its useful life or the remainder of the lease period, whichever is shorter. Non-permanent repair and maintenance costs are charged to expense as incurred. Comprehensive Loss The difference between net loss and comprehensive loss was de minimis for the three months ended June 30, 2019 and 2018. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU No. 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either "finance" or "operating," with classification affecting the pattern of expense recognition in the income statement. This update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. As a result of the adoption of ASU 2016-02, on April 1, 2019, the Company recognized (a) an operating lease liability of $14.2 million, which represents the present value of our remaining lease payments and (b) a related right-of-use asset of $13.4 million. In addition, the Company derecognized approximately $827,000 of deferred rent liability. The adoption of ASU 2016-02 did not have a material impact on the Company's statement of operations, cash flows, or stockholders’ equity. Due to the adoption of the standard using the retrospective cumulative-effect adjustment method, there are no changes to our previously reported results prior to April 1, 2019. See Note 6, Right-of-Use Assets and Lease Liabilities, for additional details. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurements (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the impact of ASU 2018-13 on our unaudited consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal Use Software (subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which clarifies the accounting for implementation costs in cloud computing arrangements. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the impact of ASU 2018-15 on our unaudited consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information | |
Supplemental Financial Information | 2. Inventories The following table presents details of our inventories: June 30, March 31, 2019 2019 (In thousands) Materials and supplies $ 1,431 $ 1,517 Work in process 104 356 Finished goods 854 1,043 $ 2,389 $ 2,916 Property and Equipment, net The following table presents details of our property and equipment, net: June 30, March 31, 2019 2019 (In thousands) Equipment $ 6,537 $ 6,444 Leasehold improvements 2,939 2,939 Accumulated depreciation (7,593) (7,418) $ 1,883 $ 1,965 Depreciation expense was approximately $198,000 and $265,000 for the three months ended June 30, 2019 and 2018, respectively. Intangible Assets There are no indefinite lived intangible assets on our unaudited consolidated balance sheets. The following table presents details of our net intangible assets: June 30, 2019 March 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value (In thousands) Technology $ 1,856 $ (1,856) $ — $ 1,856 $ (1,856) $ — Customer contracts / relationships 750 (750) — 750 (750) — Trade names and non-compete agreements 1,110 (1,110) — 1,110 (1,110) — Capitalized software development costs 5,984 (2,729) 3,255 5,768 (2,482) 3,286 Total $ 9,700 $ (6,445) $ 3,255 $ 9,484 $ (6,198) $ 3,286 Amortization expense for intangible assets subject to amortization was approximately $247,000 and $265,000 for the three months ended June 30, 2019 and 2018, respectively. Approximately $181,000 and $200,000 of the intangible asset amortization was recorded to cost of revenues, and approximately $66,000 and $65,000 was recorded to amortization expense for the three months ended June 30, 2019 and 2018, respectively, in the unaudited consolidated statements of operations. As of June 30, 2019, future estimated amortization expense is as follows: Fiscal Year Ending March 31, (In thousands) Remainder of 2020 $ 730 2021 657 2022 442 2023 295 2024 266 Thereafter 865 $ 3,255 Warranty Reserve Activity Warranty reserve is recorded as accrued liabilities in the accompanying unaudited consolidated balance sheets. The following table presents activity related to the warranty reserve: Three Months Ended June 30, 2019 2018 (In thousands) Balance at beginning of fiscal year $ 461 $ 403 Additions charged to cost of sales 265 335 Warranty claims (223) (210) Balance at end of period $ 503 $ 528 Earnings Per Share The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, 2019 2018 (In thousands) Numerator: Net loss $ (1,572) $ (1,579) Denominator: Weighted average common shares used in basic computation 34,268 33,201 Dilutive stock options — — Dilutive restricted stock units — — Weighted average common shares used in diluted computation 34,268 33,201 Net loss per share: Basic $ (0.05) $ (0.05) Diluted $ (0.05) $ (0.05) The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted loss from continuing operations per share as their effect would have been anti-dilutive: Three Months Ended June 30, 2019 2018 (In thousands) Stock options 5,061 4,169 Restricted stock units 125 148 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 3. We measure fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a three tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities or prices quoted in inactive markets; and Level 3, defined as unobservable inputs that are significant to the fair value of the asset or liability, and for which little or no market data exists, therefore requiring management to utilize its own assumptions to provide its best estimate of what market participants would use in valuing the asset or liability. We did not have any material financial assets or liabilities measured at fair value on a recurring basis using Level 3 inputs as of June 30, 2019 or March 31, 2019. Our non-financial assets, such as goodwill, intangible assets and property and equipment, are measured at fair value on a nonrecurring basis, generally when there is a transaction involving those assets such as a purchase transaction, a business combination or an adjustment for impairment. No non-financial assets were measured at fair value at June 30, 2019 and March 31, 2019. The following tables present the Company’s financial assets that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy: As of June 30, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Level 1: Money market funds $ 4,106 $ — $ — $ 4,106 Subtotal 4,106 — — 4,106 Level 2: Commercial paper 8,429 (7) — 8,422 Corporate notes and bonds 2,325 (1) — 2,324 US Treasuries 4,500 (2) — 4,498 US Government agencies 4,948 (3) — 4,945 Subtotal 20,202 (13) — 20,189 Total $ 24,308 $ (13) $ — $ 24,295 As of March 31, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Level 1: Money market funds $ 3,338 $ — $ — $ 3,338 Subtotal 3,338 — — 3,338 Level 2: Corporate notes and bonds 1,434 (1) — 1,433 US Treasuries 502 — — 502 Subtotal 1,936 (1) — 1,935 Total $ 5,274 $ (1) $ — $ 5,273 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
Income Taxes | 4. The effective tax rate used for interim periods is the estimated annual effective tax rate, based on current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. Income tax expense for the three months ended June 30, 2019 was approximately $24,000, or (1.2%) of pre-tax loss as compared with an expense of approximately $41,000, or (2.7%) of pre-tax loss for the three months ended June 30, 2018. In assessing the realizability of our deferred tax assets, we review all available positive and negative evidence, including reversal of deferred tax liabilities, potential carrybacks, projected future taxable income, tax planning strategies and recent financial performance. As we have experienced a cumulative pre-tax loss over the trailing three years, we continue to maintain a valuation allowance against our deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 5. Litigation and Other Contingencies As a provider of traffic engineering services, hardware products, software and other various solutions for the traffic and agricultural industries, the Company is, and may in the future from time to time, be involved in litigation relating to claims arising out of its operations in the normal course of business. While the Company cannot accurately predict the outcome of any such litigation, the Company is not a party to any legal proceeding, the outcome of which, in management’s opinion, individually or in the aggregate, would have a material effect on the Company’s unaudited consolidated results of operations, financial position or cash flows. Related Party Transaction We previously subleased office space to Maxxess Systems, Inc. (“Maxxess”), one of our former subsidiaries that we sold in September 2003. The sublease terminated in September 2007, at which time Maxxess owed us an aggregate of $274,000. Maxxess executed a promissory note for such amount, which was subsequently amended and restated on July 23, 2013, August 11, 2016 and on August 11, 2018. The amended and restated note bears interest at a rate of 6% per annum, compounded annually, with accrued interest payable annually on the first business day of each calendar year. When authorized by the Company, Maxxess may pay down the balance of this note by providing consulting services to Iteris. We have previously fully reserved for amounts owed to us by Maxxess and the outstanding principal balance remains fully reserved. As of June 30, 2019, approximately $146,000 of the original principal balance was outstanding and payable to Iteris. Maxxess is currently owned by an investor group that includes, among others, one former Iteris director, who has not been a director of Iteris since September 2013, and one existing director of Iteris, who currently owns less than 2% of Maxxess’ capital stock. |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 3 Months Ended |
Jun. 30, 2019 | |
Right-of-Use Assets and Lease Liabilities | |
Right-of-Use Assets and Lease Liabilities | 6. We have various operating leases for our offices, office equipment and vehicles in the United States. These leases expire at various times through 2027. Certain lease agreements contain renewal options from 1 to 5 years, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. We determine if an arrangement contains a lease at inception and determine the classification of the lease, as either operating or finance, at commencement. Right-of-use assets and lease liabilities are recorded based on the present value of future lease payments which factors in certain qualifying initial direct costs incurred as well as any lease incentives received. If an implicit rate is not readily determinable, we utilize inputs from third-party lenders to determine the appropriate discount rate. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Finance leases incur interest expense using the effective interest method in addition to amortization of the leased asset on straight-line basis, both over the applicable lease term. Lease terms may factor in options to extend or terminate the lease. We adhere to the short-term lease recognition exemption for all classes of assets (i.e. facilities and equipment). As a result, leases with an initial term of twelve months or less are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. In addition, for certain equipment leases, we account for lease and non-lease components, such as services, as a single lease component as permitted. Through March 31, 2019, we recognized rent expense related to operating leases on a straight-line basis over the lease term and, accordingly, recorded the difference between rent payments and rent expense as a deferred rent liability. Effective April 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases , or ASC 842. The table below presents lease-related assets and liabilities recorded on the unaudited consolidated balance sheet as follows: Classification June 30, 2019 (In thousands) Assets Operating lease right-of-use-assets Right-of-use assets, net $ 12,992 Liabilities Operating lease liabilities (short-term) Accrued liabilities $ 1,686 Operating lease liabilities (long-term) Lease liabilities 12,144 Total lease liabilities $ 13,830 Lease Costs We recorded approximately $598,000 of lease costs in on our unaudited consolidated statements of operations for the three months ended June 30, 2019. The Company currently has no variable lease costs. Supplemental Information The table below presents supplemental information related to operating leases during the three months ended June 30, 2019 (in thousands, except weighted average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 587 Right-of-use assets obtained in exchange for new operating lease liabilities 43 Weighted average remaining lease term 7.8 years Weighted average discount rate 5.0 % Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the unaudited consolidated balance sheet as of June 30, 2019: Fiscal Year Ending March 31, (In thousands) Remainder of 2020 $ 1,761 2021 2,277 2022 2,070 2023 1,974 2024 1,941 Thereafter 6,726 Total lease payments 16,749 Less imputed interest (2,919) Present value of future lease payments 13,830 Less current obligations under leases (1,686) Long-term lease obligations $ 12,144 Disclosure Related to Periods Prior to Adoption of New Lease Standard Minimum lease payments under operating leases with non-cancelable terms in excess of one year as of March 31, 2019, were as follows: Fiscal Year Ending March 31, (In thousands) 2020 $ 2,408 2021 2,150 2022 1,981 2023 548 2024 177 Thereafter — Total minimum lease payments $ 7,264 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. We currently maintain two stock incentive plans, the 2007 Omnibus Incentive Plan and the 2016 Omnibus Incentive Plan (the “2016 Plan”). Of these plans, we may only grant future awards from the 2016 Plan. The 2016 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), cash incentive awards and other stock-based awards. At June 30, 2019, there were approximately 2.7 million shares of common stock available for grant or issuance under the 2016 Plan. Total stock options vested and expected to vest were approximately 5.0 million as of June 30, 2019. Stock Options A summary of activity with respect to our stock options for the three months ended June 30, 2019 is as follows: Weighted Average Exercise Number of Price Per Shares Share (In thousands) Options outstanding at March 31, 2019 5,035 $ 3.70 Granted — — Exercised (10) 1.41 Forfeited (9) 4.54 Expired — — Options outstanding at June 30, 2019 5,016 $ 3.70 Restricted Stock Units A summary of activity with respect to our RSUs, which entitle the holder to receive one share of our common stock for each RSU upon vesting, for the three months ended June 30, 2019 is as follows: Number of Shares (In thousands) RSUs outstanding at March 31, 2019 112 Granted — Vested — Forfeited (2) RSUs outstanding at June 30, 2019 110 Stock-Based Compensation Expense The following table presents stock-based compensation expense that is included in each line item on our unaudited consolidated statements of operations: Three Months Ended June 30, 2019 2018 (In thousands) Cost of revenues $ 41 $ 35 Selling, general and administrative expense 503 427 Research and development expense 58 60 Total stock-based compensation expense $ 602 $ 522 At June 30, 2019, there was approximately $4.3 million and $277,000 of unrecognized compensation expense related to unvested stock options and RSUs, respectively. This expense is currently expected to be recognized over a weighted average period of approximately 1.9 years for stock options and 1.3 years for RSUs. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional stock options, RSUs or other stock-based awards. Other Stock-Based Compensation Plans We currently maintain an Employee Stock Purchase Plan (“ESPP”) which allows employees to have a percentage of their base compensation withheld to purchase the Company’s common stock at 95% of the lower of the fair market at the beginning of the offering period and on the last trading day of the offering period. There are two offering periods during a calendar year, which consist of the six months beginning each January 1 and July 1. Employees may contribute 1-15% of their eligible gross pay up to a $25,000 annual stock value limit.In June 2019 and June 2018, in the first offering period of Fiscal 2020 and 2019, 48,439 and 35,808 shares were purchased, respectively. The ESPP is considered a non-compensatory plan and accordingly, no compensation expense is recorded in connection with this benefit. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Jun. 30, 2019 | |
Stock Repurchase Program | |
Stock Repurchase Program | 8. On August 9, 2012, our Board of Directors approved a new stock repurchase program pursuant to which we may acquire up to $3.0 million of our outstanding common stock for an unspecified length of time. Under the program, we may repurchase shares from time to time in the open market and privately negotiated transactions and block trades, and may also repurchase shares pursuant to a 10b5-1 trading plan during our closed trading windows, to the extent such a 10b5-1 plan is in place. There is no guarantee as to the exact number of shares that will be repurchased. We may modify or terminate the repurchase program at any time without prior notice. On November 6, 2014, our Board of Directors approved a $3.0 million increase to the Company’s existing stock repurchase program, pursuant to which the Company may continue to acquire shares of its outstanding common stock from time to time for an unspecified length of time. For the three months ended June 30, 2019 and 2018, we did not repurchase any shares. From inception of the program in August 2011 through June 30, 2019, we repurchased approximately 3,422,000 shares of our common stock for an aggregate price of approximately $5.6 million, at an average price per share of $1.63. As of June 30, 2019, all repurchased shares have been retired and resumed their status as authorized and unissued shares of our common stock. As of June 30, 2019, approximately $1.7 million remains available for the repurchase of our common stock under our current program. |
Investments
Investments | 3 Months Ended |
Jun. 30, 2019 | |
Investments | |
Investments | 9. Our investments consisted of the following: As of June 30, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Cash and cash equivalents $ 4,106 $ — $ — $ 4,106 Short-term investments 20,202 (13) — 20,189 Total $ 24,308 $ (13) $ — $ 24,295 As of March 31, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Cash and cash equivalents $ 3,338 $ — $ — $ 3,338 Short-term investments 1,936 (1) — 1,935 Total $ 5,274 $ (1) $ — $ 5,273 Unrealized losses related to these investments are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell, and it is not more likely than not that, we would be required to sell, these investments before recovery of their cost basis. As a result, there is no other-than-temporary impairment for these investments as of June 30, 2019. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Jun. 30, 2019 | |
Business Segment Information | |
Business Segment Information | 10. We currently operate in three reportable segments: Roadway Sensors, Transportation Systems, and Agriculture and Weather Analytics. The Roadway Sensors segment provides various advanced detection sensors and systems for traffic intersection management, communication systems and roadway traffic data collection applications. The Roadway Sensors product line uses advanced image processing technology and other techniques to capture and analyze sensor data through sophisticated algorithms, enabling vehicle, bicycle and pedestrian detection, as well as the transmission of both video images and data using various communication technologies. Our Roadway Sensors products include, among others, Vantage, VantageLive!, Vantage Next, VantagePegasus, VantageRadius, Vantage Vector, Velocity, SmartCycle, SmartCycle Bike Indicator, SmartSpan, VersiCam, PedTrax and P-Series products. Our Roadway Sensors segment also includes the sale of original equipment manufacturer (“OEM”) products for the traffic intersection markets, which include, among other things, traffic signal controllers and traffic signal equipment cabinets. The Transportation Systems segment provides engineering and consulting services, performance measurement and traffic analytics solutions, as well as the development of transportation management and traveler information systems for the ITS industry. Our Transportation Systems services include planning, design, implementation, operation and management of surface transportation infrastructure systems. We perform analysis and study goods movement, commercial vehicle operations, provide travel demand forecasting and systems engineering, and identify mitigation measures to reduce traffic congestion. Our Transportation Systems product line includes: Iteris Signal Performance Measures ("SPM"), ClearGuide, and iPeMS, our performance measurement and information management solution as well as our commercial vehicle operations and vehicle safety compliance platforms known as CVIEW Plus, CheckPoint, UCRLink and inspect. The Agriculture and Weather Analytics segment includes ClearPath Weather, our road maintenance applications, and ClearAg, our digital agriculture platform. Our ClearPath Weather is a web-based solution, that includes a suite of tools that applies data assimilation and modeling technologies for assessing historical weather conditions for both short-term and long-range weather forecasts and customizable route/site weather and pavement forecasting, and providing winter road maintenance recommendations for state agencies, municipalities and for commercial companies that allow such users to create solutions to meet roadway maintenance decision needs. Our ClearAg solutions combine weather and agronomic data with proprietary land-surface modeling and analytics to solve complex agricultural problems and to increase the efficiency and sustainability of farmlands. We currently offer our ClearAg solutions to companies in the agriculture industry, such as seed and crop protection companies, integrated food companies, and agricultural equipment manufacturers and service providers. Our ClearAg solutions provide weather, environment, soil and plant growth modeling to deliver smart content through ClearAg APIs and components, IMFocus APIs and ClearAg web applications. The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1 – Description of Business and Summary of Significant Accounting Policies). Certain corporate general and administrative expenses, including general overhead functions such as information systems, accounting, human resources, marketing, compliance costs and certain administrative expenses, as well as interest and amortization of intangible assets, are not allocated to the segments. The reportable segments are each managed separately because they manufacture and distribute distinct products or provide services with different processes. All reported segment revenues are derived from external customers. Our Chief Executive Officer, who is our chief operating decision maker (“CODM”), reviews financial information at the operating segment level. Our CODM does not review assets by segment in his resource allocation, and therefore, assets by segment are not disclosed below. The following table sets forth selected unaudited consolidated financial information for our reportable segments for the three months ended June 30, 2019 and 2018: Agriculture Roadway Transportation and Weather Sensors Systems Analytics Total (In thousands) Three Months Ended June 30, 2019 Product revenues $ 12,771 $ 1,746 $ — $ 14,517 Service revenues 37 10,613 1,440 12,090 Total revenues $ 12,808 $ 12,359 $ 1,440 $ 26,607 Segment income (loss) 2,332 1,566 (1,035) 2,863 Three Months Ended June 30, 2018 Product revenues $ 10,801 $ 1,117 $ — $ 11,918 Service revenues 59 12,067 1,431 13,557 Total revenues $ 10,860 $ 13,184 $ 1,431 $ 25,475 Segment income (loss) 1,833 1,358 (1,142) 2,049 The following table reconciles total segment income (loss) to unaudited consolidated loss from continuing operations before income taxes: Three Months Ended June 30, 2019 2018 (In thousands) Segment income (loss): Total income from reportable segments $ 2,863 $ 2,049 Unallocated amounts: Corporate and other expenses (4,368) (3,576) Amortization of intangible assets (66) (65) Other income (expense), net (10) 15 Interest income, net 33 39 Loss from operations before income taxes $ (1,548) $ (1,538) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Event | |
Subsequent Event | 11. On July 2, 2019, the Company completed the acquisition of Albeck Gerken, Inc., a privately-held professional transportation engineering services firm headquartered in Tampa, Florida, with offices in Orlando (FL), Virginia Beach (VA) and Chadds Ford (PA). Pursuant to a Stock Purchase Agreement dated June 10, 2019 among the Company, AGI and the stockholders of AGI (the “Selling Shareholders”), the Company acquired all of the outstanding capital stock of AGI from the selling Shareholders for an aggregate purchase price of $10,720,000, payable in cash and stock, of which 114,943 shares are being held in escrow for 18 months to secure performance of indemnification and other post-closing obligations of the Selling Shareholders. The Company has agreed to grant up to $1,744,200 in retention bonuses to the Selling Shareholders payable in the form of restricted stock (valued at $5.22 per share), and up to $570,000 in retention cash bonuses to other employees, provided such employees remain in our service on the first, second and third anniversary of the closing of the acquisition. AGI is expected to operate as a wholly-owned subsidiary of the Company as part of the Transportation Systems business. AGI assists municipalities in maximizing the effectiveness of their existing transportation networks through a collection of traffic management services to cost effectively improve the performance of roadway systems and address increased traffic demands, traffic congestion and delay. With a foundation of arterial timing plan development, AGI has expanded its services into active arterial monitoring and management with multiple public sector clients. AGI is expected to expand the Company’s geographic footprint for ITS services in Florida, as well as in the Midwest and Mid-Atlantic region. Given the timing of the completion of the acquisition, we are currently in the process of valuing the assets acquired and liabilities assumed in the acquisition. As a result, we are unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed and other disclosures. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation Our unaudited consolidated financial statements include the accounts of Iteris, Inc. and its subsidiary, and have been prepared in accordance with the rules of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting, which permit certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“GAAP”) to be condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the fiscal year ended March 31, 2019 (“Fiscal 2019”), filed with the SEC on June 6, 2019. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three month period ended June 30, 2019 are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2020 (“Fiscal 2020”) or any other periods. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in the preparation of the consolidated financial statements include revenue recognition, the collectability of accounts receivable and related allowance for doubtful accounts, projections of taxable income used to assess realizability of deferred tax assets, warranty reserves and other contingencies, costs to complete long-term contracts, indirect cost rates used in cost plus contracts, the valuation of inventories, the valuation of purchased intangible assets and goodwill, the valuation of investments, estimates of future cash flows used to assess the recoverability of long-lived assets and the impairment of goodwill, and fair value of our stock option awards used to calculate stock-based compensation. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services are transferred to our customers, in a gross amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We generate all of our revenue from contracts with customers. Product revenue related contracts with customers begin when we acknowledge a purchase order for a specific customer order of product to be delivered in the near term. These purchase orders are short-term in nature. Product revenue is recognized at a point in time upon shipment or upon customer receipt of the product, depending on shipping terms. The Company determined that this method best represents the transfer of goods as transfer of control typically occurs upon shipment or upon customer receipt of the product. Service revenues, primarily derived from the Transportation Systems and Agriculture and Weather Analytics segments, are primarily from long-term engineering and consulting service contracts with governmental agencies. These contracts generally include performance obligations in which control is transferred over time. We recognize revenue on fixed fee contracts, over time, using the proportion of actual costs incurred to the total costs expected to complete the contract performance obligation. The Company determined that this method best represents the transfer of services as the proportion closely depicts the efforts or inputs completed towards the satisfaction of a fixed fee contract performance obligation. Time & Materials (“T&M”) and Cost Plus Fixed Fee (“CPFF”) contracts are considered variable consideration. However, performance obligations with these fee types qualify for the “Right to Invoice” Practical Expedient. Under this practical expedient, the Company is allowed to recognize revenue, over time, in the amount to which the Company has a right to invoice. In addition, the Company is not required to estimate such variable consideration upon inception of the contract and reassess the estimate each reporting period. The Company determined that this method best represents the transfer of services as, upon billing, the Company has a right to consideration from a customer in an amount that directly corresponds with the value to the customer of the Company’s performance completed to date. Service revenues also consist of revenues derived from maintenance support and the use of the Company’s service platforms and APIs on a subscription basis. We generate this revenue from fees for maintenance support, monthly active user fees, SaaS fees, and hosting and storage fees. In most cases, the subscription or transaction arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company applies a time-based measure of progress to the total transaction price, which results in ratable recognition over the term of the contract. The Company determined that this method best represents the transfer of services as the customer obtains equal benefit from the service throughout the service period. The Company accounts for individual goods and services separately if they are distinct performance obligations, which often requires significant judgment based upon knowledge of the products and/or services, the solution provided and the structure of the sales contract. In SaaS agreements, we provide a service to the customer which combines the software functionality, maintenance and hosting into a single performance obligation. In product related contracts, a purchase order may contain different products, each constituting a separate performance obligation. We generally estimate variable consideration at the most likely amount to which we expect to be entitled and in certain cases based on the expected value, which requires judgment. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. We review and update these estimates on a quarterly basis. The Company’s typical performance obligations include the following: Performance Obligation When Performance When Payment is How Standalone Product Revenues Standard purchase orders for delivery of a tangible product Upon shipment (point in time) Within 30 days of delivery Observable transactions Engineering services where the deliverable is considered a product As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach Service Revenues Engineering and consulting services As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach SaaS Over the course of the SaaS service once the system is available for use (over time) At the beginning of the contract period Estimated using a cost-plus margin approach Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into reportable segments and the nature of the products and services. See Note 10, Business Segment Information, for our revenue by reportable segment. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for goods and services as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in trade accounts receivable, net in our unaudited consolidated balance sheet at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. If warranted, the allowance is increased by the Company’s provision for doubtful accounts, which is charged against income. All recoveries on receivables previously charged off are included in income, while direct charge-offs of receivables are deducted from the allowance. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented as unbilled accounts receivable on the accompanying balance sheet. For example, we would record a contract asset if we record revenue on a professional services engagement, but are not entitled to bill until we achieve specified milestones. Our contract assets and refund liabilities are reported in a net position on a contract basis at the end of each reporting period. Refund liabilities are consideration received in advance of the satisfaction of performance obligations. Transaction Price Allocated to the Remaining Performance Obligations As of June 30, 2019, the aggregate amount of transaction price allocated to remaining performance obligations was immaterial primarily as a result of termination provisions within our contracts which make the duration of the accounting term of the contract one year or less. |
Deferred Revenue | Deferred Revenue Deferred revenue in the accompanying unaudited consolidated balance sheets is comprised of refund liabilities related to billings and consideration received in advance of the satisfaction of performance obligations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents consist primarily of demand deposits and money market funds maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with high quality financial institutions, and therefore are believed to have minimal credit risk. Our accounts receivable are primarily derived from billings with customers located throughout North America, as well as in Europe and South America. We generally do not require collateral or other security from our domestic customers. We maintain an allowance for doubtful accounts for potential credit losses, which losses have historically been within management’s expectations. We currently have, and historically have had, a diverse customer base. For the three months ended June 30, 2019, no individual customer represented greater than 10% of our total revenues, and for the three months ended June 30, 2018, one individual customer represented approximately 29% of our total revenues. As of June 30, 2019, and March 31, 2019, no individual customer represented greater than 10% of our total accounts receivable. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The fair value of cash equivalents, receivables, accounts payable and accrued expenses approximate carrying value because of the short period of time to maturity. Our investments are measured at fair value on a recurring basis. The framework for measuring fair value and related disclosure requirements about fair value measurements are provided in Financial Accounting Standard Board ("FASB") Accounting Standards Codification ("ASC") 820, Fair Value Measurements (“ASC 820”). This pronouncement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by ASC 820 contains three levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments with initial maturities of 90 days or less. |
Investments | Investments The Company’s investments are classified as either held‑to‑maturity, available‑for‑sale or trading, in accordance with FASB ASC 320 – Investments – Debt and Equity Securities. Held‑to‑maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held‑to‑maturity or trading category are classified as available‑for‑sale. Held‑to‑maturity securities are recorded at amortized cost, which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available‑for‑sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive loss as a separate component of stockholders’ equity. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available (see Note 3 – Fair Value Measurements). As of June 30, 2019, all of our investments are available‑for‑sale. Under FASB ASC 320‑10‑35, a security is considered to be other‑than‑temporarily impaired if the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference being defined as the “Credit Loss”) or if the fair value of the security is less than the security’s amortized cost basis and the investor intends, or will be required, to sell the security before recovery of the security’s amortized cost basis. If an other‑than‑temporary impairment exists, the charge to earnings is limited to the amount of Credit Loss if the investor does not intend to sell the security, and will not be required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost is recognized in other comprehensive loss, net of applicable taxes. The Company evaluates whether the decline in fair value of its investments is other‑than‑temporary at each quarter‑end. This evaluation consists of a review by management, and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether a loss is temporary include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near‑term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The collectability of our accounts receivable is evaluated through review of outstanding invoices and ongoing credit evaluations of our customers’ financial condition. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, we will record an allowance against amounts due, and thereby reduce the net recognized accounts receivable to the amount we reasonably believe will be collected. We also maintain an allowance based on our historical collections experience. When we determine that collection is not likely, we write off accounts receivable against the allowance for doubtful accounts |
Inventories | Inventories Inventories consist of finished goods, work-in-process and raw materials and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful life ranging from three to eight years. Leasehold improvements are depreciated over the term of the related lease or the estimated useful life of the improvement, whichever is shorter. |
Goodwill and Long-Lived Assets | Goodwill and Long-Lived Assets We perform an annual qualitative assessment of our goodwill during the fourth fiscal quarter, or more frequently, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in overall industry demand, that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If events or circumstances do not indicate that the fair value of a reporting unit is below its carrying amount, then goodwill is not considered to be impaired and no further testing is required; if otherwise, we compare the fair value of our reporting unit to its carrying value, including goodwill. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the amount by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. We monitor the indicators for goodwill impairment testing between annual tests. As of June 30, 2019, we determined that there were no impairment indicators for goodwill. We test long-lived assets and purchased intangible assets (other than goodwill) for impairment if we believe indicators of impairment exist. We determine whether the carrying value of an asset or asset group is recoverable, based on comparisons to undiscounted expected future cash flows the asset or asset group is expected to generate. If an asset is not recoverable, we record an impairment loss equal to the amount by which the carrying value of the asset exceeds its fair value. We primarily use the income valuation approach to determine the fair value of our long lived assets and purchased intangible assets. As of June 30, 2019, there was no impairment to our long-lived and intangible assets. |
Income Taxes | Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more‑likely‑than‑not that some or all of the deferred tax assets will not be realized, which increases our income tax expense in the period such determination is made. As such, as of June 30, 2019, we determined it was appropriate to record a full valuation allowance against our deferred tax assets. We will continuously reassess the appropriateness of maintaining a valuation allowance. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. |
Stock-Based Compensation | Stock-Based Compensation We record stock-based compensation in our unaudited consolidated statements of operations as an expense, based on the estimated grant date fair value of our stock-based awards, whereby such fair values are amortized over the requisite service period. Our stock-based awards are currently comprised of common stock options and restricted stock units. The fair value of our common stock option awards is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. While utilizing this model meets established requirements, the estimated fair values generated by it may not be indicative of the actual fair values of our common stock option awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements, as well as limited transferability. The fair value of our restricted stock units is based on the closing market price of our common stock on the grant date. If there are any modifications or cancellations of the underlying unvested stock- based awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. |
Research and Development Expenditures | Research and Development Expenditures Research and development expenditures are charged to expense in the period incurred. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included as cost of revenues in the period during which the products ship. |
Sales Taxes | Sales Taxes Sales taxes are presented on a net basis (excluded from revenues) in the unaudited consolidated statements of operations. |
Warranty | Warranty We generally provide a one to three year warranty from the original invoice date on all products, materials and workmanship. Products sold to various original equipment manufacturer customers sometimes carry longer warranties. Defective products will be either repaired or replaced, usually at our option, upon meeting certain criteria. We accrue a provision for the estimated costs that may be incurred for product warranties relating to a product as a component of cost of sales at the time revenue for that product is recognized. The accrued warranty reserve is included within accrued liabilities in the accompanying unaudited consolidated balance sheets. We do not provide any service-type warranties. |
Repair and Maintenance Costs | Repair and Maintenance Costs We incur repair and maintenance costs in the normal course of business. Should the repair or maintenance result in a permanent improvement to one of our leased facilities, the cost is capitalized as a leasehold improvement and amortized over its useful life or the remainder of the lease period, whichever is shorter. Non-permanent repair and maintenance costs are charged to expense as incurred. |
Comprehensive Loss | Comprehensive Loss The difference between net loss and comprehensive loss was de minimis for the three months ended June 30, 2019 and 2018. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU No. 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either "finance" or "operating," with classification affecting the pattern of expense recognition in the income statement. This update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. As a result of the adoption of ASU 2016-02, on April 1, 2019, the Company recognized (a) an operating lease liability of $14.2 million, which represents the present value of our remaining lease payments and (b) a related right-of-use asset of $13.4 million. In addition, the Company derecognized approximately $827,000 of deferred rent liability. The adoption of ASU 2016-02 did not have a material impact on the Company's statement of operations, cash flows, or stockholders’ equity. Due to the adoption of the standard using the retrospective cumulative-effect adjustment method, there are no changes to our previously reported results prior to April 1, 2019. See Note 6, Right-of-Use Assets and Lease Liabilities, for additional details. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirement for Fair Value Measurements (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the impact of ASU 2018-13 on our unaudited consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal Use Software (subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”), which clarifies the accounting for implementation costs in cloud computing arrangements. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the impact of ASU 2018-15 on our unaudited consolidated financial statements. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Description of Business and Summary of Significant Accounting Policies | |
Schedule of typical performance obligations | Performance Obligation When Performance When Payment is How Standalone Product Revenues Standard purchase orders for delivery of a tangible product Upon shipment (point in time) Within 30 days of delivery Observable transactions Engineering services where the deliverable is considered a product As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach Service Revenues Engineering and consulting services As work is performed (over time) Within 30 days of services being invoiced Estimated using a cost-plus margin approach SaaS Over the course of the SaaS service once the system is available for use (over time) At the beginning of the contract period Estimated using a cost-plus margin approach |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information | |
Schedule of inventories | June 30, March 31, 2019 2019 (In thousands) Materials and supplies $ 1,431 $ 1,517 Work in process 104 356 Finished goods 854 1,043 $ 2,389 $ 2,916 |
Schedule of property and equipment, net | June 30, March 31, 2019 2019 (In thousands) Equipment $ 6,537 $ 6,444 Leasehold improvements 2,939 2,939 Accumulated depreciation (7,593) (7,418) $ 1,883 $ 1,965 |
Schedule of intangible assets | June 30, 2019 March 31, 2019 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Book Amount Amortization Value Amount Amortization Value (In thousands) Technology $ 1,856 $ (1,856) $ — $ 1,856 $ (1,856) $ — Customer contracts / relationships 750 (750) — 750 (750) — Trade names and non-compete agreements 1,110 (1,110) — 1,110 (1,110) — Capitalized software development costs 5,984 (2,729) 3,255 5,768 (2,482) 3,286 Total $ 9,700 $ (6,445) $ 3,255 $ 9,484 $ (6,198) $ 3,286 |
Schedule of future estimated amortization expense | As of June 30, 2019, future estimated amortization expense is as follows: Fiscal Year Ending March 31, (In thousands) Remainder of 2020 $ 730 2021 657 2022 442 2023 295 2024 266 Thereafter 865 $ 3,255 |
Schedule of warranty reserve activity | Three Months Ended June 30, 2019 2018 (In thousands) Balance at beginning of fiscal year $ 461 $ 403 Additions charged to cost of sales 265 335 Warranty claims (223) (210) Balance at end of period $ 503 $ 528 |
Schedule of computation of basic and diluted net loss per share | Three Months Ended June 30, 2019 2018 (In thousands) Numerator: Net loss $ (1,572) $ (1,579) Denominator: Weighted average common shares used in basic computation 34,268 33,201 Dilutive stock options — — Dilutive restricted stock units — — Weighted average common shares used in diluted computation 34,268 33,201 Net loss per share: Basic $ (0.05) $ (0.05) Diluted $ (0.05) $ (0.05) |
Schedule of instruments excluded in the computation of diluted loss from continuing operations per share | Three Months Ended June 30, 2019 2018 (In thousands) Stock options 5,061 4,169 Restricted stock units 125 148 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements | |
Schedule of financial assets that are recorded at fair value on a recurring basis | As of June 30, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Level 1: Money market funds $ 4,106 $ — $ — $ 4,106 Subtotal 4,106 — — 4,106 Level 2: Commercial paper 8,429 (7) — 8,422 Corporate notes and bonds 2,325 (1) — 2,324 US Treasuries 4,500 (2) — 4,498 US Government agencies 4,948 (3) — 4,945 Subtotal 20,202 (13) — 20,189 Total $ 24,308 $ (13) $ — $ 24,295 As of March 31, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Level 1: Money market funds $ 3,338 $ — $ — $ 3,338 Subtotal 3,338 — — 3,338 Level 2: Corporate notes and bonds 1,434 (1) — 1,433 US Treasuries 502 — — 502 Subtotal 1,936 (1) — 1,935 Total $ 5,274 $ (1) $ — $ 5,273 |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Right-of-Use Assets and Lease Liabilities | |
Schedule of lease-related assets and liabilities recorded on the unaudited consolidated balance sheet. | Classification June 30, 2019 (In thousands) Assets Operating lease right-of-use-assets Right-of-use assets, net $ 12,992 Liabilities Operating lease liabilities (short-term) Accrued liabilities $ 1,686 Operating lease liabilities (long-term) Lease liabilities 12,144 Total lease liabilities $ 13,830 |
Schedule of supplemental information related to operating leases. | The table below presents supplemental information related to operating leases during the three months ended June 30, 2019 (in thousands, except weighted average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 587 Right-of-use assets obtained in exchange for new operating lease liabilities 43 Weighted average remaining lease term 7.8 years Weighted average discount rate 5.0 % |
Schedule of undiscounted cash flows | Fiscal Year Ending March 31, (In thousands) Remainder of 2020 $ 1,761 2021 2,277 2022 2,070 2023 1,974 2024 1,941 Thereafter 6,726 Total lease payments 16,749 Less imputed interest (2,919) Present value of future lease payments 13,830 Less current obligations under leases (1,686) Long-term lease obligations $ 12,144 |
Schedule of Minimum lease payments under operating leases with non-cancelable terms in excess of one year. | Fiscal Year Ending March 31, (In thousands) 2020 $ 2,408 2021 2,150 2022 1,981 2023 548 2024 177 Thereafter — Total minimum lease payments $ 7,264 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
Summary of activity in the plans with respect to stock options | Weighted Average Exercise Number of Price Per Shares Share (In thousands) Options outstanding at March 31, 2019 5,035 $ 3.70 Granted — — Exercised (10) 1.41 Forfeited (9) 4.54 Expired — — Options outstanding at June 30, 2019 5,016 $ 3.70 |
Summary of activity with respect to RSUs | Number of Shares (In thousands) RSUs outstanding at March 31, 2019 112 Granted — Vested — Forfeited (2) RSUs outstanding at June 30, 2019 110 |
Schedule of stock-based compensation expense | Three Months Ended June 30, 2019 2018 (In thousands) Cost of revenues $ 41 $ 35 Selling, general and administrative expense 503 427 Research and development expense 58 60 Total stock-based compensation expense $ 602 $ 522 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Investments | |
Schedule of Unrealized Gain (Loss) on Investments | As of June 30, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Cash and cash equivalents $ 4,106 $ — $ — $ 4,106 Short-term investments 20,202 (13) — 20,189 Total $ 24,308 $ (13) $ — $ 24,295 As of March 31, 2019 Gross Unrealized Gross Unrealized Estimated Fair Amortized Cost Loss Gain Value (In thousands) Cash and cash equivalents $ 3,338 $ — $ — $ 3,338 Short-term investments 1,936 (1) — 1,935 Total $ 5,274 $ (1) $ — $ 5,273 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Business Segment Information | |
Schedule of selected financial information for reportable segments | Agriculture Roadway Transportation and Weather Sensors Systems Analytics Total (In thousands) Three Months Ended June 30, 2019 Product revenues $ 12,771 $ 1,746 $ — $ 14,517 Service revenues 37 10,613 1,440 12,090 Total revenues $ 12,808 $ 12,359 $ 1,440 $ 26,607 Segment income (loss) 2,332 1,566 (1,035) 2,863 Three Months Ended June 30, 2018 Product revenues $ 10,801 $ 1,117 $ — $ 11,918 Service revenues 59 12,067 1,431 13,557 Total revenues $ 10,860 $ 13,184 $ 1,431 $ 25,475 Segment income (loss) 1,833 1,358 (1,142) 2,049 |
Schedule of reconciles total segment income (loss) to consolidated loss from continuing operations before income taxes | Three Months Ended June 30, 2019 2018 (In thousands) Segment income (loss): Total income from reportable segments $ 2,863 $ 2,049 Unallocated amounts: Corporate and other expenses (4,368) (3,576) Amortization of intangible assets (66) (65) Other income (expense), net (10) 15 Interest income, net 33 39 Loss from operations before income taxes $ (1,548) $ (1,538) |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Details) | Jun. 13, 2019USD ($)shares | Jun. 30, 2019USD ($)customer | Mar. 31, 2019USD ($)customer | Jun. 30, 2018customer | Apr. 01, 2019USD ($) |
Significant accounting policies | |||||
Proceeds from Issuance of Common Stock | $ 26,751,000 | ||||
Revenue Recognition | |||||
Prepaid expenses and other current assets | 1,675,000 | $ 1,367,000 | |||
Total assets | 96,955,000 | 57,955,000 | |||
Deferred revenue | 4,491,000 | 4,883,000 | |||
Total liabilities | 36,933,000 | 23,900,000 | |||
Accumulated deficit | (113,115,000) | (111,543,000) | |||
Total liabilities and stockholders' equity | 96,955,000 | $ 57,955,000 | |||
Goodwill and Long-Lived Assets | |||||
Loss on impairment of goodwill | 0 | ||||
Impairment of long-lived and intangible assets | 0 | ||||
Recent Accounting Pronouncements | |||||
Operating lease right-of-use-assets | 12,992,000 | ||||
Lease liabilities | $ 13,830,000 | ||||
No individual customer | |||||
Concentration of Credit Risk | |||||
Number of customers | customer | 0 | 0 | |||
Total revenues | Customer | One individual customer | |||||
Concentration of Credit Risk | |||||
Number of customers | customer | 1 | ||||
Minimum | |||||
Warranty | |||||
Warranty period | 1 year | ||||
Minimum | Property and equipment | |||||
Property and Equipment, net | |||||
Useful life | 3 years | ||||
Minimum | Total revenues | Customer | One individual customer | |||||
Concentration of Credit Risk | |||||
Percentage of concentration risk | 29.00% | ||||
Minimum | Total revenues | Customer | No individual customer | |||||
Concentration of Credit Risk | |||||
Percentage of concentration risk | 10.00% | ||||
Minimum | Total accounts receivable | Customer | No individual customer | |||||
Concentration of Credit Risk | |||||
Percentage of concentration risk | 10.00% | 10.00% | |||
Maximum | |||||
Warranty | |||||
Warranty period | 3 years | ||||
Maximum | Property and equipment | |||||
Property and Equipment, net | |||||
Useful life | 8 years | ||||
ASU 2016-02 | |||||
Recent Accounting Pronouncements | |||||
Operating lease right-of-use-assets | $ 13,400,000 | ||||
Lease liabilities | 14,200,000 | ||||
Derecognition of deferred rent | $ 827,000 | ||||
Stockholders of AGI | |||||
Significant accounting policies | |||||
Payments to Acquire Businesses, Gross | $ 6,185,000 | ||||
Underwritten Public Offering | |||||
Significant accounting policies | |||||
Stock Issued During Period, Shares, New Issues | shares | 6,182,797 | ||||
Proceeds from Issuance of Common Stock | $ 26,800,000 |
Supplemental Financial Inform_3
Supplemental Financial Information - Inventories , Property and Equipment (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Inventories | |||
Materials and supplies | $ 1,431,000 | $ 1,517,000 | |
Work in process | 104,000 | 356,000 | |
Finished goods | 854,000 | 1,043,000 | |
Total inventories | 2,389,000 | 2,916,000 | |
Property and Equipment, net | |||
Accumulated depreciation | (7,593,000) | (7,418,000) | |
Property and Equipment, net | 1,883,000 | 1,965,000 | |
Depreciation expense | 198,000 | $ 265,000 | |
Equipment | |||
Property and Equipment, net | |||
Gross | 6,537,000 | 6,444,000 | |
Leasehold improvements | |||
Property and Equipment, net | |||
Gross | $ 2,939,000 | $ 2,939,000 |
Supplemental Financial Inform_4
Supplemental Financial Information - Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Intangible Assets | |||
Gross Carrying Amount | $ 9,700,000 | $ 9,484,000 | |
Accumulated Amortization | (6,445,000) | (6,198,000) | |
Net Book Value | 3,255,000 | 3,286,000 | |
Amortization expense | 247,000 | $ 265,000 | |
Amortization recorded to cost of revenues | 181,000 | 200,000 | |
Amortization of intangible assets | 66,000 | $ 65,000 | |
Technology | |||
Intangible Assets | |||
Gross Carrying Amount | 1,856,000 | 1,856,000 | |
Accumulated Amortization | (1,856,000) | (1,856,000) | |
Customer contracts / relationships | |||
Intangible Assets | |||
Gross Carrying Amount | 750,000 | 750,000 | |
Accumulated Amortization | (750,000) | (750,000) | |
Trade names and non-compete agreements | |||
Intangible Assets | |||
Gross Carrying Amount | 1,110,000 | 1,110,000 | |
Accumulated Amortization | (1,110,000) | (1,110,000) | |
Capitalized software development costs | |||
Intangible Assets | |||
Gross Carrying Amount | 5,984,000 | 5,768,000 | |
Accumulated Amortization | (2,729,000) | (2,482,000) | |
Net Book Value | $ 3,255,000 | $ 3,286,000 |
Supplemental Financial Inform_5
Supplemental Financial Information - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Future estimated amortization expense | ||
Remainder of 2020 | $ 730 | |
2021 | 657 | |
2022 | 442 | |
2023 | 295 | |
2024 | 266 | |
Thereafter | 865 | |
Net Book Value | $ 3,255 | $ 3,286 |
Supplemental Financial Inform_6
Supplemental Financial Information - Warranty Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Activity related to warranty reserve | ||
Balance at beginning of fiscal year | $ 461 | $ 403 |
Additions charged to cost of sales | 265 | 335 |
Warranty claims | (223) | (210) |
Balance at end of period | $ 503 | $ 528 |
Supplemental Financial Inform_7
Supplemental Financial Information - Earnings (loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||
Net loss | $ (1,572) | $ (1,579) |
Denominator: | ||
Weighted average common shares used in basic computation (in shares) | 34,268 | 33,201 |
Weighted average common shares used in diluted computation (in shares) | 34,268 | 33,201 |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.05) | $ (0.05) |
Diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Supplemental Financial Inform_8
Supplemental Financial Information - Earnings (loss) Per Share Excluded weighted average (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock options | ||
Shares excluded in the computation of loss from continuing operations per share | ||
Shares excluded in the computation of loss from continuing operations per share | 5,061 | 4,169 |
Restricted stock units | ||
Shares excluded in the computation of loss from continuing operations per share | ||
Shares excluded in the computation of loss from continuing operations per share | 125 | 148 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Non-financial assets measured at fair value | ||
Non-financial assets measured at fair value | $ 0 | $ 0 |
Amortized Cost | 24,308 | 5,274 |
Gross Unrealized Loss | (13) | (1) |
Estimated Fair Value | 24,295 | 5,273 |
Level 1 | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 4,106 | 3,338 |
Estimated Fair Value | 4,106 | 3,338 |
Level 1 | Money market funds | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 4,106 | 3,338 |
Estimated Fair Value | 4,106 | 3,338 |
Level 2 | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 20,202 | 1,936 |
Gross Unrealized Loss | (13) | (1) |
Estimated Fair Value | 20,189 | 1,935 |
Level 2 | Commercial paper | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 8,429 | |
Gross Unrealized Loss | (7) | |
Estimated Fair Value | 8,422 | |
Level 2 | Corporate notes and bonds | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 2,325 | 1,434 |
Gross Unrealized Loss | (1) | (1) |
Estimated Fair Value | 2,324 | 1,433 |
Level 2 | US Treasuries | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 4,500 | 502 |
Gross Unrealized Loss | (2) | |
Estimated Fair Value | 4,498 | $ 502 |
Level 2 | US Government agencies | ||
Non-financial assets measured at fair value | ||
Amortized Cost | 4,948 | |
Gross Unrealized Loss | (3) | |
Estimated Fair Value | $ 4,945 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of income tax (benefit) provision to taxes computed at U.S. federal statutory rates | ||
Expense (benefit) for income taxes | $ 24,000 | $ 41,000 |
Income tax expense (benefit) as a percentage of pre-tax loss | 1.20% | 2.70% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |||
Jun. 30, 2019USD ($)subsidiary | Aug. 11, 2018USD ($) | Aug. 11, 2016USD ($) | Jul. 23, 2013USD ($) | |
Maximum | Maxxess | ||||
Related Party Transaction | ||||
Ownership percentage of non-controlling | 2.00% | |||
Maxxess | ||||
Related Party Transaction | ||||
Number of former subsidiaries | subsidiary | 1 | |||
Promissory note payable issued to reporting entity for amounts previously owed under a sublease agreement | $ | $ 146,000 | $ 274,000 | $ 274,000 | $ 274,000 |
Interest on promissory note (as a percent) | 6.00% |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Assets | |
Operating lease right-of-use-assets | $ 12,992,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right-of-use-assets |
Liabilities | |
Operating lease liabilities (short-term) | $ 1,686,000 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current |
Operating lease liabilities (long-term) | $ 12,144,000 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities (long-term) |
Total lease liabilities | $ 13,830,000 |
Lease Costs | |
Lease costs | 598,000 |
Variable lease costs | $ 0 |
Minimum | |
Operating Lease | |
Renewal option term | 1 year |
Maximum | |
Operating Lease | |
Renewal option term | 5 years |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities - Supplemental Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Supplemental Information | |
Cash paid for amounts included in the measurement of lease liabilities | $ 587 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 43 |
Weighted average remaining lease term | 7 years 9 months 18 days |
Weighted average discount rate | 5.00% |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities - Undiscounted Cash Flows (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Undiscounted Cash Flows | |
Remainder of 2020 | $ 1,761 |
2021 | 2,277 |
2022 | 2,070 |
2023 | 1,974 |
2024 | 1,941 |
Thereafter | 6,726 |
Total lease payments | 16,749 |
Less imputed interest | (2,919) |
Total lease liabilities | 13,830 |
Less current obligations under leases | (1,686) |
Long-term lease obligations | $ 12,144 |
Right-of-Use Assets and Lease_6
Right-of-Use Assets and Lease Liabilities - Prior to Adoption of New Lease Standard (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Disclosure Related to Periods Prior to Adoption of New Lease Standard | |
2020 | $ 2,408 |
2021 | 2,150 |
2022 | 1,981 |
2023 | 548 |
2024 | 177 |
Total minimum lease payments | $ 7,264 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options & RSUs (Details) | 3 Months Ended |
Jun. 30, 2019plan$ / sharesshares | |
Stock-Based Compensation | |
Number of stock incentive plans | plan | 2 |
Vested and expected to vest at the end of the period (in shares) | 5,000,000 |
Stock options | |
Number of Shares | |
Options outstanding at the beginning of the period (in shares) | 5,035,000 |
Exercised (in shares) | (10,000) |
Forfeited (in shares) | (9,000) |
Options outstanding at the end of the period (in shares) | 5,016,000 |
Weighted Average Exercise Price Per Share | |
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 3.70 |
Exercised (in dollars per share) | $ / shares | 1.41 |
Forfeited (in dollars per share) | $ / shares | 4.54 |
Options outstanding at the end of the period (in dollars per share) | $ / shares | $ 3.70 |
Restricted stock units | |
Weighted Average Exercise Price Per Share | |
Number of shares of common stock receivable upon vesting of each RSU | 1 |
Number of Shares | |
RSUs outstanding at the beginning of the period (in shares) | 112,000 |
Forfeited (in shares) | (2,000) |
RSUs outstanding at the end of the period (in shares) | 110,000 |
2016 Plan | |
Stock-Based Compensation | |
Authorized for future issuance under stock incentive plans (in shares) | 2,700,000 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 602,000 | $ 522,000 |
Stock options | ||
Stock-Based Compensation | ||
Unrecognized compensation expense related to unvested stock options | $ 4,300,000 | |
Weighted average period over which compensation expense is expected to be recognized | 1 year 10 months 24 days | |
Restricted stock units | ||
Stock-Based Compensation | ||
Unrecognized compensation expense related to unvested RSUs | $ 277,000 | |
Weighted average period over which compensation expense is expected to be recognized | 1 year 3 months 18 days | |
Cost of revenues | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 41,000 | 35,000 |
Selling, general and administrative expense | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 503,000 | 427,000 |
Research and development expense | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 58,000 | $ 60,000 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other Stock-Based Compensation Plans (Details) | Jan. 01, 2018USD ($)period | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Other Stock-Based Compensation Plans | |||||
Stock-based compensation expense | $ 602,000 | $ 522,000 | |||
ESPP | |||||
Other Stock-Based Compensation Plans | |||||
Purchase price of common stock (as a percent) | 95.00% | ||||
Number of offering periods | period | 2 | ||||
Duration of offering period (in months) | 6 months | ||||
Annual stock value | $ 25,000 | $ 48,439 | $ 35,808 | ||
Stock-based compensation expense | $ 0 | ||||
ESPP | Minimum | |||||
Other Stock-Based Compensation Plans | |||||
Employer matching contribution (as a percent) | 1.00% | ||||
ESPP | Maximum | |||||
Other Stock-Based Compensation Plans | |||||
Employer matching contribution (as a percent) | 15.00% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 06, 2014 | Jun. 30, 2018 | Jun. 30, 2019 | Aug. 09, 2012 |
Stock Repurchase Program | ||||
Number of shares acquired | 3,422,000 | |||
Value of common stock repurchased | $ 5.6 | |||
Average price per share of common stock repurchased (in dollars per share) | $ 1.63 | |||
Value of common stock available for repurchase under current program | $ 1.7 | |||
August 2012 Program | ||||
Stock Repurchase Program | ||||
Increase in the authorized amount for repurchase of common stock | $ 3 | |||
August 2012 Program | Maximum | ||||
Stock Repurchase Program | ||||
Value of common stock approved under stock repurchase program | $ 3 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Investments | ||
Amortized Cost | $ 24,308 | $ 5,274 |
Gross Unrealized Loss | (13) | (1) |
Estimated Fair Value | 24,295 | 5,273 |
Other-than-temporary impairment of investments | 0 | |
Cash and cash equivalents | ||
Investments | ||
Amortized Cost | 4,106 | 3,338 |
Estimated Fair Value | 4,106 | 3,338 |
Short-term investments | ||
Investments | ||
Amortized Cost | 20,202 | 1,936 |
Gross Unrealized Loss | (13) | (1) |
Estimated Fair Value | $ 20,189 | $ 1,935 |
Business Segment Information -
Business Segment Information - Business Segments (Details) | 3 Months Ended | |
Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Business Segments | ||
Number of reportable segments | segment | 3 | |
Total revenues | $ 26,607,000 | $ 25,475,000 |
Depreciation | 198,000 | 265,000 |
Loss on impairment of goodwill | 0 | |
Segment income (loss) | (1,571,000) | (1,592,000) |
Product | ||
Business Segments | ||
Total revenues | 14,517,000 | 11,918,000 |
Service | ||
Business Segments | ||
Total revenues | 12,090,000 | 13,557,000 |
Operating segments | ||
Business Segments | ||
Total revenues | 26,607,000 | 25,475,000 |
Segment income (loss) | 2,863,000 | 2,049,000 |
Operating segments | Product | ||
Business Segments | ||
Total revenues | 14,517,000 | 11,918,000 |
Operating segments | Service | ||
Business Segments | ||
Total revenues | 12,090,000 | 13,557,000 |
Operating segments | Roadway Sensors | ||
Business Segments | ||
Total revenues | 12,808,000 | 10,860,000 |
Segment income (loss) | 2,332,000 | 1,833,000 |
Operating segments | Roadway Sensors | Product | ||
Business Segments | ||
Total revenues | 12,771,000 | 10,801,000 |
Operating segments | Roadway Sensors | Service | ||
Business Segments | ||
Total revenues | 37,000 | 59,000 |
Operating segments | Transportation Systems | ||
Business Segments | ||
Total revenues | 12,359,000 | 13,184,000 |
Segment income (loss) | 1,566,000 | 1,358,000 |
Operating segments | Transportation Systems | Product | ||
Business Segments | ||
Total revenues | 1,746,000 | 1,117,000 |
Operating segments | Transportation Systems | Service | ||
Business Segments | ||
Total revenues | 10,613,000 | 12,067,000 |
Operating segments | Agriculture and Weather Analytics | ||
Business Segments | ||
Total revenues | 1,440,000 | 1,431,000 |
Segment income (loss) | (1,035,000) | (1,142,000) |
Operating segments | Agriculture and Weather Analytics | Service | ||
Business Segments | ||
Total revenues | $ 1,440,000 | $ 1,431,000 |
Business Segment Information _2
Business Segment Information - Reconciliation of Total Segment (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment income (loss): | ||
Total income from reportable segments | $ (1,571,000) | $ (1,592,000) |
Amortization of intangible assets | (66,000) | (65,000) |
Other income (expense), net | (10,000) | 15,000 |
Interest income, net | 33,000 | 39,000 |
Loss from operations before income taxes | (1,548,000) | (1,538,000) |
Operating segments | ||
Segment income (loss): | ||
Total income from reportable segments | 2,863,000 | 2,049,000 |
Unallocated amounts | ||
Segment income (loss): | ||
Corporate and other expenses | (4,368,000) | (3,576,000) |
Amortization of intangible assets | (66,000) | (65,000) |
Other income (expense), net | (10,000) | 15,000 |
Interest income, net | 33,000 | 39,000 |
Loss from operations before income taxes | $ (1,548,000) | $ (1,538,000) |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Jul. 02, 2019USD ($)$ / sharesshares |
Stockholders of AGI | |
Subsequent Event | |
Aggregate purchase price | $ 10,720,000 |
Number of shares held in escrow | shares | 114,943 |
Period in which shares held in escrow | 18 months |
Agreed retention bonus | $ 1,744,200 |
Stockholders of AGI | Restricted stock | |
Subsequent Event | |
Per share value | $ / shares | $ 5.22 |
Other employees | |
Subsequent Event | |
Agreed retention bonus | $ 570,000 |