Itron Inc., a leader in demand side energy management, saw shares drop when it reported a loss and projected lower 2007 results than analysts expected.
Itron reported a $3.4 million (11 cents per share) third quarter loss because of lower North American sales and expenses related to acquisitions. During the same period in 2006, Itron reported $9.2 million (35 cents per share) in income.
In February, Itron announced it would acquire Actaris Metering Systems of Europe for over $1 billion, which helped revenue more than double ($434 million from $164.7 million last year). But revenue from sales in North America dropped 7% to $153 million.
Itron’s year end forecasts disappointed analysts, coming in at $2.65-$2.75 per share instead of the expected $2.92 per share.
Itron, which has been a strong leader in the space, saw shares fall 17.9% to $82.95 in morning trading.
Sales of its automatic meter reader devices have slowed because utilities are looking at switching to advanced metering infrastructure technology. Itron will likely invest in R&D to upgrade its product line.
Analysts that cover the Itron are split between “Buy” and “Neutral” ratings.
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