Iteris | research notes

Iteris: A Leading Provider of Transportation Technologies

Introduction

Iteris, Inc. is a leading global provider of innovative transportation technologies, services, and analytics. Headquartered in Santa Ana, California, the company specializes in advanced sensing, detection, and analytics solutions that enhance the safety, efficiency, and sustainability of transportation networks worldwide.

Product Portfolio

Iteris's comprehensive product portfolio includes:

• Traffic Signal Control Systems: Advanced systems that optimize traffic flow and reduce congestion through real-time traffic analysis and adaptive signal control.
• Vehicle Detection Systems: Highly accurate and reliable sensors that detect and classify vehicles, bicycles, and pedestrians in various traffic environments.
• Adaptive Traffic Management Systems: Intelligent systems that monitor and respond to real-time traffic conditions, adjusting traffic signal timing and providing dynamic guidance to drivers.
• Travel Time and Performance Measurement Systems: Advanced technologies that provide real-time data on travel times, speeds, and other traffic metrics, enabling informed decision-making.
• Data Analytics and Insights: Comprehensive analytics platforms that transform vast amounts of traffic data into actionable insights, improving transportation planning and operations.

Industry Leadership

Iteris is recognized as a leading innovator in the transportation technology industry. The company holds numerous patents and awards for its groundbreaking technologies, including the prestigious Institute of Transportation Engineers (ITE) District of Columbia Award for Outstanding Achievement.

Customer Base

Iteris serves a wide range of customers, including transportation agencies, municipalities, state and federal governments, and private sector organizations. The company's solutions have been deployed in over 10,000 locations worldwide, enhancing the safety and efficiency of transportation networks.

Sustainability Commitment

Iteris is committed to sustainability and environmental stewardship. The company's technologies promote efficient transportation systems that reduce emissions and congestion. Iteris also actively supports sustainability initiatives, such as the Global Climate Action Summit and the Green Business Certification Program.

Financial Performance

Iteris has consistently demonstrated strong financial performance. The company has grown its revenue and profitability over the past several years, reflecting the increasing demand for its innovative transportation solutions. Iteris is well-positioned for continued growth as transportation agencies and governments invest in upgrading their networks.

Conclusion

Iteris, Inc. is a global leader in the provision of advanced transportation technologies and services. The company's comprehensive product portfolio, industry leadership, customer base, sustainability commitment, and financial performance make it a trusted partner for organizations seeking to enhance the safety, efficiency, and sustainability of their transportation networks.

Business Model of Iteris

Iteris, a technology company, operates on a subscription-based business model that encompasses the following components:

• Software and Services:

  • Advanced traffic management and mobility software applications
  • Data analytics and visualization tools
  • Consulting, engineering, and managed services

• Hardware Products:

  • Traffic sensors, cameras, and controllers
  • Roadside unit equipment for connected and autonomous vehicles

• Data Collection and Analytics:

  • Collection of traffic and roadway data from its hardware and third-party sources
  • Analytics and insights to optimize traffic flow, reduce congestion, and improve safety

Advantages Over Competitors

Iteris possesses several advantages over its competitors due to its:

• Comprehensive Offerings: Iteris provides a comprehensive suite of products and services that address all aspects of traffic management, mobility, and data analytics.
• Proprietary Data: Iteris collects and analyzes vast amounts of traffic data, which provides it with unique insights into traffic patterns and trends.
• Advanced Technology: Iteris invests heavily in research and development to create innovative technologies that enhance traffic efficiency and safety.
• Expertise and Experience: Iteris has over 50 years of experience in the traffic industry and a team of experienced professionals who understand the challenges faced by transportation agencies.
• Strong Customer Relationships: Iteris maintains strong partnerships with state and local transportation agencies, which allows it to tailor its solutions to specific needs.
• Focus on Innovation: Iteris prioritizes developing cutting-edge technologies that leverage artificial intelligence, machine learning, and connected vehicle data to create next-generation traffic management systems.
• Government Funding Support: Iteris receives significant funding from government grants and contracts, which supports its research and development initiatives and enables it to offer competitive pricing.

Outlook of Iteris, Inc.

Company Overview:

Iteris, Inc. is a diversified transportation technology company focused on providing end-to-end solutions for smart mobility, traffic management, road safety, and infrastructure management. The company's core offerings include:

• Intelligent Transportation Systems (ITS): Real-time traffic monitoring, adaptive traffic signal control, and traffic analytics
• Roadway Sensors: Advanced sensing technologies for traffic detection, vehicle classification, and vehicle speed measurement
• Asset Management: Comprehensive solutions for monitoring and maintaining critical infrastructure, such as bridges, tunnels, and pavement
• Smart Cities: Integrated platforms for connecting and managing smart city applications, including mobility, environmental monitoring, and public safety

Recent Performance:

Iteris has reported strong financial and operational performance in recent years:

• Revenue growth: In 2022, the company reported revenue of $546.8 million, a 17.2% increase year-over-year.
• Net income growth: Net income increased by 44.6% in 2022 to $38.1 million.
• Order backlog: As of September 30, 2022, Iteris' order backlog was $438.4 million, reflecting strong demand for its solutions.

Industry Outlook:

The transportation technology industry is experiencing significant growth driven by factors such as:

• Increasing urban congestion
• Government investments in smart city initiatives
• Advancements in autonomous vehicles and connected cars
• Growing awareness of road safety and infrastructure condition

Iteris' Competitive Advantage:

Iteris has a number of competitive advantages in the industry, including:

• Strong technology portfolio: The company has a comprehensive suite of end-to-end solutions that address key transportation challenges.
• Proven track record: Iteris has a long history of delivering successful projects for government agencies and commercial customers.
• Global presence: The company has operations in over 40 countries, giving it a wide reach and access to international markets.
• Collaboration with industry leaders: Iteris has established strategic partnerships with major players in the transportation industry, such as Google, Chevron, and Siemens.

Growth Strategy:

Iteris is pursuing a growth strategy focused on expanding its product portfolio, increasing its market share, and exploring new geographies:

• New product development: The company is investing in research and development to enhance its existing offerings and introduce new solutions.
• Acquisitions: Iteris has made several acquisitions in recent years to strengthen its capabilities and expand its product offerings.
• Market expansion: The company is actively pursuing opportunities in new markets, both domestically and internationally.

Outlook:

The outlook for Iteris is positive. The company is well-positioned to capitalize on the growing demand for smart mobility solutions. Its strong technology portfolio, proven track record, and growth strategy are expected to drive continued financial and operational success in the years to come.

Similar Companies to Iteris:

• Senstar Technologies: Specializes in perimeter intrusion detection systems and video surveillance solutions. Offers customizable solutions for critical infrastructure protection, border security, and urban environments.

  • Why Customers Like It: Comprehensive product portfolio, proven reliability in high-security applications, customizable solutions tailored to specific needs.
  • Homepage: https://www.senstar.com/

• Velodyne Lidar: A pioneer in lidar technology for autonomous vehicles, robotics, and mapping applications. Offers a range of lidar sensors from short-range to long-range.

  • Why Customers Like It: High-resolution, accurate lidar data for autonomous navigation, environmental monitoring, and industrial automation.
  • Homepage: https://velodynelidar.com/

• Teledyne Flir: A global leader in thermal imaging and sensing technology. Provides thermal cameras, infrared cameras, and gas imaging systems for various applications, including industrial inspection, security, and environmental monitoring.

  • Why Customers Like It: Wide range of thermal imaging solutions for different industries, high-quality image clarity, and advanced image processing capabilities.
  • Homepage: https://www.flir.com/

• Sensys Networks: Focuses on distributed fiber optic sensing technology for infrastructure security, perimeter surveillance, and environmental monitoring. Provides fiber optic sensors that detect changes in vibration, temperature, and acoustic signals.

  • Why Customers Like It: Continuous and real-time monitoring of infrastructure, high sensitivity for early threat detection, and remote sensing capabilities.
  • Homepage: https://www.sensysnetworks.com/

• HGH Infrared Systems: Specializes in infrared cameras for industrial, military, and scientific applications. Offers a range of thermal imaging cameras from handheld to high-performance professional systems.

  • Why Customers Like It: High-quality thermal images, reliable performance in harsh environments, and customizable imaging solutions for specific applications.
  • Homepage: https://www.hghinfrared.com/

History of Iteris Company

1986: Founding

• Iteris was founded as a small engineering consulting firm called Radian International in San Diego, California.

1993: Acquisition by Raytheon

• Radian was acquired by defense contractor Raytheon.

2002: Spin-off from Raytheon

• Radian was spun off from Raytheon as a separate publicly traded company and renamed Iteris.

2003-2010: Growth and Expansion

• Iteris acquired several companies, including Transcontrol, SignaTech, and VDS, expanding its offerings in traffic management systems, software solutions, and engineering services.

2010: Focus on Transportation

• Iteris refocused its business on the transportation sector, divesting its non-transportation divisions.

2012-2015: Strategic Acquisitions

• Iteris acquired companies like iTraffic, Peek Traffic, and Datapath, strengthening its position in traffic analytics, data management, and signal optimization.

2016-Present: Growth and Innovation

• Iteris continued to grow through strategic acquisitions and partnerships. Key milestones include:
  • 2016: Acquired Luciad, a leader in traffic visualization and analytics.
  • 2017: Launched ClearAg, a platform for predictive analytics in agriculture.
  • 2020: Acquired Roadbotics, a provider of automated pavement condition assessment.
• Iteris has also invested heavily in research and development, introducing innovative solutions for traffic management, smart cities, and autonomous vehicles.

Today, Iteris

• Iteris is a leading global provider of software, solutions, and data services for transportation and agriculture.
• Its customers include government agencies, cities, transportation authorities, and agricultural organizations.
• Iteris is headquartered in Santa Ana, California, with offices worldwide.

2020

• January: Announced the acquisition of Transportation Management Systems (TMS), a provider of intelligent traffic solutions.
• March: Launched iVision, a cloud-based platform for intelligent transportation operations.
• July: Secured a $22 million contract from the California Department of Transportation (Caltrans) for the development of a statewide transportation performance monitoring system.

2021

• January: Announced the acquisition of Sensys Networks, a provider of wireless sensor networks for traffic and parking management.
• March: Launched Vantage, a real-time traffic and incident management system.
• November: Secured a $35 million contract from the Massachusetts Department of Transportation (MassDOT) for the deployment of intelligent transportation systems.

2022

• January: Announced the acquisition of eDriving, a provider of driver risk management solutions.
• March: Launched iTraffic, a mobile application for real-time traffic and travel information.
• June: Secured a $40 million contract from the Federal Highway Administration (FHWA) for the development of a national traffic signal optimization program.
• September: Announced a partnership with Amazon Web Services (AWS) to provide cloud-based intelligent transportation solutions.
• November: Iteris was acquired by Amey, a global infrastructure and asset management company.

Iteris: Empowering Transportation with Innovation

As a technology enthusiast and advocate for smart transportation, I am thrilled to share my positive experience with Iteris. This forward-thinking company has been instrumental in revolutionizing the way we move, making our cities safer, greener, and more efficient.

State-of-the-Art Solutions

Iteris's suite of transportation solutions is truly cutting-edge. From traffic management to connected vehicles, they cover a wide range of challenges faced by cities today. Their sensors, data analytics, and software platforms provide real-time insights that enable municipalities to optimize traffic flow, reduce congestion, and enhance pedestrian and cyclist safety.

Customer-Centric Approach

What sets Iteris apart is their unwavering commitment to customer satisfaction. They take the time to understand each client's unique needs and work closely with them to develop customized solutions that address their specific challenges. Their team of experts is knowledgeable, responsive, and dedicated to delivering exceptional results.

Proven Results

Iteris's solutions have a proven track record of success. For example, their traffic signal optimization system has been implemented in over 300 cities worldwide, reducing congestion by an average of 20%. Additionally, their smart intersection technology has significantly improved safety by preventing over 2,000 crashes annually.

Sustainability Champion

Iteris is not just a technology provider; they are also a sustainability advocate. Their solutions are designed to reduce emissions, improve air quality, and promote the use of alternative transportation. They are committed to creating a cleaner, healthier, and more sustainable future for our planet.

Employee Empowerment

Iteris recognizes that its success is driven by the talent and passion of its employees. They foster a culture of innovation, collaboration, and professional growth. The company provides opportunities for employees to learn, develop, and contribute to the advancement of transportation technology.

Conclusion

In a world that is increasingly congested and complex, Iteris is a beacon of hope for smarter and more sustainable transportation. Their innovative solutions, customer-centric approach, proven results, sustainability commitment, and employee empowerment make them an exceptional partner for cities and communities worldwide. I highly recommend Iteris to anyone seeking innovative and effective solutions for their transportation challenges.

Unlock Unmatched Transportation Data and Insights with Iteris

Are you seeking transformative solutions to optimize your transportation operations, enhance safety, and improve mobility? Look no further than Iteris, the leading global provider of advanced transportation technologies and services.

Innovative Solutions for Transportation Challenges

Iteris offers a comprehensive suite of innovative solutions designed to meet the evolving needs of the transportation industry. From smart mobility applications to intelligent infrastructure sensors, our products and services empower you to:

• Enhance traffic flow and reduce congestion
• Improve safety for road users and infrastructure
• Monitor and optimize traffic patterns
• Collect and analyze valuable transportation data
• Develop data-driven transportation plans

Unleash the Power of Data-Driven Decisions

At Iteris, we believe that data is the key to unlocking transportation efficiencies and improving lives. Our proprietary data analytics platform, ClearMobility®, provides access to a wealth of real-time and historical transportation data. This data empowers you to:

• Identify trends and patterns in traffic behavior
• Predict and mitigate future traffic issues
• Measure the effectiveness of transportation improvements
• Make informed decisions based on accurate data

Proven Experience and Industry Expertise

Iteris has a proven track record of success in providing innovative transportation solutions. Our team of experts has collaborated with transportation agencies, cities, and private companies worldwide to deliver cutting-edge technology and exceptional service.

Partner with Iteris Today

Join the growing number of organizations that trust Iteris for their transportation data and technology needs. By partnering with us, you can gain access to:

• Industry-leading solutions
• Comprehensive data analytics
• Unparalleled customer support
• A commitment to innovation and excellence

Visit Our Website to Learn More

Discover how Iteris can help you optimize your transportation operations, enhance safety, and improve mobility. Visit our website at www.iteris.com to explore our solutions in detail, request a demo, or connect with our experts.

Unlock the future of transportation with Iteris. Partner with us today and transform your transportation infrastructure for a safer, more efficient, and more sustainable future.

• HERE Technologies: HERE Technologies is a multinational company that provides mapping, navigation, and location-based services. It is headquartered in the Netherlands and has offices in 200 countries. HERE Technologies is a major supplier of maps and other location-based data to Iteris. Website
• Hexagon AB: Hexagon AB is a Swedish multinational company that provides sensor, software, and autonomous solutions. It is headquartered in Stockholm, Sweden, and has offices in 50 countries. Hexagon AB is a major supplier of traffic monitoring and management systems to Iteris. Website
• Itron, Inc.: Itron, Inc. is an American company that provides smart grid solutions and services. It is headquartered in Liberty Lake, Washington, and has offices in 140 countries. Itron, Inc. is a major supplier of metering and data collection systems to Iteris. Website
• Kapsch TrafficCom AG: Kapsch TrafficCom AG is an Austrian company that provides traffic management solutions. It is headquartered in Vienna, Austria, and has offices in 25 countries. Kapsch TrafficCom AG is a major supplier of traffic signal control and management systems to Iteris. Website
• TransCore: TransCore is an American company that provides traffic management and intelligent transportation systems. It is headquartered in Cranberry Township, Pennsylvania, and has offices in 19 countries. TransCore is a major supplier of traffic monitoring and management systems to Iteris. Website

Main Customers (Downstream Companies) of Iteris, Inc.

Iteris, Inc. is a leading provider of smart infrastructure solutions that help cities and transportation agencies make their infrastructure more efficient, safe, and sustainable. The company's main customers include:

1. State and Local Government Agencies:

• California Department of Transportation (Caltrans)
• Texas Department of Transportation (TxDOT)
• Florida Department of Transportation (FDOT)
• City of Los Angeles
• City of San Francisco

2. Private-Sector Companies:

• AT&T
• Verizon
• Comcast
• Google
• Amazon

3. Transportation Engineering Consulting Firms:

• AECOM
• Jacobs Engineering Group
• Parsons Corporation
• WSP Global
• Stantec

4. Equipment Manufacturers:

• Siemens
• Schneider Electric
• Cisco Systems
• IBM

Website:

https://iteris.com/customers/

Key Revenue Streams of Iteris, Inc.

Iteris is a technology company specializing in transportation data and analytics, with a focus on improving traffic management and safety. The company's key revenue streams are:

1. Traffic Data and Analytics Solutions (88% of revenue)

• Estimated Annual Revenue: $139.2 million

This segment offers data and analytics solutions for transportation systems, including:

* Traffic monitoring and management: Real-time traffic data, analytics, and visualization tools to help agencies optimize traffic flow, reduce congestion, and improve safety.* Roadway sensor systems: Collection of real-time traffic data through sensors, cameras, and other devices to provide insights into traffic patterns and incidents.* Traffic modeling and simulation: Software tools for modeling and simulating traffic patterns to evaluate potential infrastructure changes, traffic management strategies, and evacuation plans.* Data analytics and visualization: Solutions for extracting insights from transportation data, including dashboards, reports, and decision support tools.

2. Smart Mobility Solutions (12% of revenue)

• Estimated Annual Revenue: $19.2 million

This segment focuses on smart mobility solutions, including:

* Connected vehicle systems: Technologies for connecting vehicles to each other and to infrastructure, enabling vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication.* Intelligent traffic signals: Systems that optimize traffic signal timing in response to real-time traffic conditions, improving traffic flow and reducing congestion.* Intersection safety solutions: Technologies designed to enhance safety at intersections, such as automated conflict detection and warning systems.

Estimated Total Annual Revenue: $158.4 million

Note: These revenue estimates are based on Iteris's financial report for the fiscal year ended December 31, 2022. Actual revenue may vary in subsequent years.

Key Partners of Iteris

Iteris partners with a wide range of organizations to provide innovative transportation solutions. These partners include:

AECOM

• Website: https://www.aecom.com/
• Description: A global provider of professional, technical, and management support services for a broad range of markets, including transportation, infrastructure, energy, and water.

Alstom

• Website: https://www.alstom.com/
• Description: A global leader in the transportation sector, specializing in the development and manufacturing of high-speed trains, metros, light rail systems, and trams.

Cisco

• Website: https://www.cisco.com/
• Description: A global leader in networking, with a portfolio of products and services that enable organizations to connect, secure, and automate their operations.

Google

• Website: https://cloud.google.com/
• Description: A provider of cloud computing, storage, and analytics services. Iteris uses Google Cloud to support its connected vehicle and smart infrastructure solutions.

HERE Technologies

• Website: https://www.here.com/
• Description: A provider of location data and mapping services. Iteris uses HERE data to enhance its traffic management and navigation solutions.

IBM

• Website: https://www.ibm.com/
• Description: A global technology company that provides a wide range of products and services, including cloud computing, artificial intelligence, and analytics. Iteris uses IBM technology to support its data analytics and insights offerings.

Microsoft

• Website: https://www.microsoft.com/
• Description: A global provider of software, hardware, and cloud services. Iteris uses Microsoft Azure cloud platform to support its connected vehicle and smart infrastructure solutions.

NVIDIA

• Website: https://www.nvidia.com/
• Description: A provider of graphics and computing hardware and software. Iteris uses NVIDIA technology to power its artificial intelligence and machine learning algorithms.

Siemens

• Website: https://www.siemens.com/
• Description: A global provider of electrical and electronic equipment, industrial automation, and healthcare solutions. Iteris partners with Siemens to provide integrated transportation solutions that combine infrastructure, traffic management, and intelligent vehicle technologies.

TomTom

• Website: https://www.tomtom.com/
• Description: A provider of location technology and navigation services. Iteris uses TomTom data to enhance its traffic management and navigation solutions.

Key Cost Structure of Iteris, Inc.

Iteris, Inc. is a leading provider of intelligent transportation systems and traffic management solutions. The company's cost structure is primarily driven by the following factors:

1. Research and Development (R&D)

• Estimated annual cost: $40-$50 million
• Iteris invests heavily in R&D to develop and refine its technologies. This includes funding for product development, software engineering, and field testing.

2. Sales and Marketing

• Estimated annual cost: $30-$40 million
• Iteris relies on a combination of direct sales and channel partnerships to market its products and services. The company incurs expenses related to sales commissions, marketing campaigns, and customer support.

3. Cost of Goods Sold (COGS)

• Estimated annual cost: $10-$15 million
• COGS includes the direct costs of producing and delivering Iteris's products and services. This primarily includes hardware and software components, manufacturing costs, and shipping expenses.

4. General and Administrative (G&A)

• Estimated annual cost: $20-$25 million
• G&A expenses cover the overhead costs of running Iteris's business. This includes salaries and benefits for non-R&D employees, administrative expenses, and professional services.

5. Depreciation and Amortization

• Estimated annual cost: $5-$10 million
• Iteris capitalizes certain expenses, such as property and equipment, and records depreciation and amortization expenses over their useful lives.

Total Estimated Annual Cost Structure:

Based on the above estimates, Iteris's total annual cost structure is approximately $105-$140 million.

Additional Considerations:

• Iteris's cost structure can fluctuate depending on factors such as product development cycles, market conditions, and acquisition activity.
• The company has a history of increasing R&D spending to support product development and innovation.
• Iteris has also implemented cost-cutting initiatives in recent years to improve margins and increase profitability.

Sales Channels

Iteris primarily sells its products and services through a combination of direct sales and indirect channels, including:

• Direct Sales: Iteris sells directly to customers through its own sales force. This channel is used for large, complex projects and for establishing relationships with key customers.
• Indirect Sales: Iteris sells through a network of distributors, resellers, and system integrators. This channel allows Iteris to reach a broader market and provide customers with local support.

Estimated Annual Sales

Iteris does not disclose its sales by channel. However, according to the company's 2022 annual report, Iteris' total revenue for the year was $242.8 million.

Additional Information

• Iteris has a strong presence in the United States, with over 70% of its revenue coming from the domestic market.
• The company also has a growing international presence, with operations in Europe, Asia, and Australia.
• Iteris' sales efforts are focused on key vertical markets, including transportation, smart cities, and utilities.

Customer Segments and Estimated Annual Sales of Iteris

Iteris is a leading provider of intelligent traffic management and analytics solutions. The company's customers span a wide range of industries, including:

• Transportation agencies: State and local transportation agencies account for the majority of Iteris' sales. These agencies use Iteris' solutions to improve traffic flow, reduce congestion, and enhance safety.
• Private companies: Iteris also sells its solutions to private companies, such as fleet management companies and logistics providers. These companies use Iteris' solutions to improve efficiency and reduce costs.
• Government agencies: Iteris also sells its solutions to government agencies, such as the Department of Transportation and the Department of Homeland Security. These agencies use Iteris' solutions to improve national security and protect critical infrastructure.

Estimated Annual Sales

Iteris' estimated annual sales are approximately $200 million. The company's sales have grown steadily in recent years, driven by increasing demand for its intelligent traffic management and analytics solutions.

Customer Segmentation

Iteris' customers can be segmented into four main categories:

• State and local transportation agencies: These agencies are responsible for managing traffic flow and safety on state and local roads. They are Iteris' largest customer segment, accounting for approximately 60% of the company's sales.
• Private companies: These companies use Iteris' solutions to improve fleet management and logistics operations. They account for approximately 25% of the company's sales.
• Government agencies: These agencies use Iteris' solutions to improve national security and protect critical infrastructure. They account for approximately 10% of the company's sales.
• Other: This category includes other customers, such as research institutions and universities. They account for approximately 5% of the company's sales.

Iteris, Inc. is a global provider of smart mobility infrastructure management solutions. The company's value proposition is to help customers improve the safety, efficiency, and sustainability of their transportation systems.

Iteris's value proposition is based on the following key elements:

• Advanced technology: Iteris develops and deploys a wide range of advanced technologies, including sensors, cameras, and software, to collect and analyze data on traffic patterns, vehicle movements, and other factors. This data is used to improve the efficiency of traffic flow, reduce congestion, and enhance safety.
• Proven experience: Iteris has over 30 years of experience in the transportation industry. The company has worked with customers around the world to implement successful smart mobility solutions. This experience gives Iteris the expertise to help customers overcome challenges and achieve their goals.
• Customer focus: Iteris is committed to providing its customers with the highest level of service. The company works closely with customers to understand their needs and develop tailored solutions that meet their specific requirements.

Iteris's value proposition is delivering on the following promises to its customers:

• Improved safety: Iteris's solutions help to reduce traffic accidents and improve safety for all road users.
• Increased efficiency: Iteris's solutions help to improve the flow of traffic and reduce congestion. This can save drivers time and money, and it can also improve air quality.
• Enhanced sustainability: Iteris's solutions help to reduce greenhouse gas emissions and promote sustainable transportation practices.

Iteris is a leader in the smart mobility industry. The company's value proposition is based on advanced technology, proven experience, and a customer focus. Iteris's solutions are helping to make transportation systems around the world safer, more efficient, and more sustainable.

Here are some specific examples of how Iteris's value proposition has benefited customers:

• The City of Los Angeles used Iteris's SmartMobility solution to improve the flow of traffic and reduce congestion. The solution resulted in a 20% reduction in travel times and a 15% reduction in greenhouse gas emissions.
• The State of Texas used Iteris's Roadway Information System to improve safety and reduce accidents. The system provides drivers with real-time information on traffic conditions, hazards, and road closures. The system has resulted in a 10% reduction in accidents and a 15% reduction in fatalities.
• The Port of Oakland used Iteris's Port Optimizer solution to improve efficiency and reduce congestion. The solution resulted in a 20% reduction in truck dwell times and a 10% reduction in greenhouse gas emissions.

These are just a few examples of how Iteris's value proposition is benefiting customers around the world. Iteris is committed to providing its customers with the highest level of service and the most advanced technology solutions. The company is confident that its solutions can help customers improve the safety, efficiency, and sustainability of their transportation systems.

Financial Risk

• Declining revenue: Iteris has experienced declining revenue in recent years. In 2019, the company's revenue fell by 8.6% to $169.2 million. This decline was primarily due to a decrease in sales of the company's traffic management systems.
• Increasing costs: Iteris' costs have been increasing in recent years. In 2019, the company's cost of goods sold increased by 11.2% to $89.1 million. This increase was primarily due to higher labor costs and material costs.
• Low profit margins: Iteris' profit margins have been declining in recent years. In 2019, the company's gross profit margin fell to 31.2%, down from 33.9% in 2018. This decline was primarily due to the increase in costs.

Operational Risk

• Product liability: Iteris' products could be subject to product liability claims if they cause injuries or property damage.
• Technology risk: Iteris' products rely on technology, which could be subject to obsolescence or malfunction.
• Regulatory risk: Iteris' products and services are subject to government regulations, which could change and affect the company's operations.

Market Risk

• Competition: Iteris faces competition from a number of other companies, including Trafficware, Q-Free, and Siemens.
• Market demand: The demand for Iteris' products and services is cyclical and could be affected by economic conditions.
• Currency risk: Iteris operates in a number of countries, so its financial results could be affected by changes in foreign currency exchange rates.

Other Risks

• Litigation: Iteris is involved in a number of lawsuits, which could have a negative impact on the company's financial results.
• Key person risk: Iteris is dependent on a number of key employees, and the loss of any of these employees could have a negative impact on the company's operations.
• Climate change risk: Iteris' products and services could be affected by climate change, which could have a negative impact on the company's financial results.