Itron announced that it has filed its Annual Report on Form 10-K

As previously announced, Itron delayed the filing of its 2015 Form 10-K to review revenue recognition on contracts for which the Company had not been able to demonstrate Vendor Specific Objective Evidence ("VSOE") of fair value for maintenance associated with certain software solutions. The Company has completed its review and has determined that revisions to correct misstatements in its previously issued financial statements were required. Accordingly, the Company's 2015 financial results included in the Company's press release dated Feb. 17, 2016 as well as the financial statements for years 2014 and 2013 have been revised to reflect the deferral of certain revenue and costs that the Company previously recognized in earlier periods. In addition, the revised periods reflect other adjustments for items previously considered immaterial and for changes in estimates subsequent to the Company's preliminary results announcement.

"We are pleased to have concluded the review of our revenue recognition accounting and to have filed our Form 10-K for 2015," said Philip Mezey, Itron's president and chief executive officer. "As we anticipated, the revised accounting treatment impacts primarily the timing of revenues and costs for certain software contracts and does not affect the Company's cash generation or balances. Importantly, our 2016 operating results to date continue to be on track with our plans, our pipeline of business is strong and we are successfully executing against our strategic initiatives for profitability and growth. We look forward to providing an update to our full year 2016 financial guidance with our second quarter earnings announcement."

Impact of Revisions to Previously Reported Preliminary 2015 Results

The revisions had the following effect compared with the Company's preliminary 2015 GAAP results previously reported on Feb. 17, 2016:

• Revenue and gross profit. Total revenues and cost of revenues increased $5.7 million and $8.2 million, respectively. Gross profit decreased $2.4 million, with no material impact on gross margin percentage. The changes are primarily due to the Company's revised revenue recognition for certain contracts that resulted in the deferral of revenues and costs from prior periods into 2015 and adjustments to warranty estimates.
• Operating expenses and pre-tax income. Operating expenses increased $16.9 million related primarily to revisions in the accounting estimates of provision for legal, bad debts and the restructuring accrual. Total pre-tax income was reduced $19.3 million to $37.1 million.
• Income tax impact. The income tax provision decreased $7.2 million related primarily to lower pre-tax income.
• Net income and EPS impact. Net income attributable to Itron decreased $12.1 million to $12.7 million, and GAAP diluted EPS decreased 31 cents to 33 cents. Non-GAAP diluted EPS decreased 28 cents to 73 cents.
• No impact to cash and cash equivalents. The revisions did not impact the Company's free cash flow or its cash and cash equivalents balances for any of the affected periods.

Update on First Quarter 2016 Form 10-Q and Filing Extensions

On May 23, 2016, Itron received notice from The Nasdaq Stock Market ("NASDAQ") that its plan to regain compliance with NASDAQ Listing Rule 5250(c)(1) and its request for an extension to Sept. 12, 2016 to regain listing compliance has been approved. Itron also obtained waivers from its creditors that extend the due dates to Sept. 12, 2016 for annual audited financial statements and quarterly unaudited financial statements.

The Company continues to finalize adjustments to its revenue recognition accounting for certain software and maintenance contracts and complete its financial statements for the first quarter of 2016. Itron expects to file its first quarter Form 10-Q as soon as practicable.

As previously announced, the Company engaged Deloitte & Touche LLP in March 2016 as its independent audit firm for the year ending Dec. 31, 2016.

About Itron

Itron is a world-leading technology and services company dedicated to the resourceful use of energy and water. We provide comprehensive solutions that measure, manage and analyze energy and water. Our broad product portfolio includes electricity, gas, water and thermal energy measurement devices and control technology; communications systems; software; as well as managed and consulting services. With thousands of employees supporting nearly 8,000 customers in more than 100 countries, Itron applies knowledge and technology to better manage energy and water resources.

Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. Specifically, these non-GAAP financial measures are provided to enhance investors' overall understanding of our current financial performance and our future anticipated performance by excluding infrequent or non-cash costs, particularly those associated with acquisitions. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. Our non-GAAP financial measures may be different from those reported by other companies. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.

Statements of operations, segment information, balance sheets, cash flow statements and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures follow.

Itron, Inc.
Comparison of Key 2015 Financial Metrics
to Preliminary Results Announced February 17, 2016
(Unaudited, in thousands, except per share data)
			(announced Feb. 17, 2016)
			Preliminary FY 2015					Final 2015
Revenues			$	1,877,813				$	1,883,533
Cost of revenues				1,318,695					1,326,848
Gross profit				559,118					556,685
Gross margin %				29.8	%				29.6	%
Total operating expenses				486,973					503,839
Operating income (loss)				72,145					52,846
Total other income (expense)				(15,744	)				(15,744	)
Income (loss) before income taxes				56,401					37,102
Income tax benefit (provision)				(29,310	)				(22,099	)
Net income (loss)				27,091					15,003
Net income attributable to non-controlling interests				2,325					2,325
Net income (loss) attributable to Itron, Inc.			$	24,766				$	12,678
Weighted average common shares outstanding - Diluted				38,506					38,506
GAAP Earnings per share - Diluted			$	0.64				$	0.33
Non-GAAP earnings per share - Diluted			$	1.01				$	0.73
Other metrics: (in millions)
Total Assets			$	1,645				$	1,681
Total Liabilities			$	996				$	1,059
Cash and cash equivalents			$	131				$	131
Free Cash Flow			$	29				$	29
Backlog			$	1,550				$	1,575

ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
			Year Ended December 31,
			2015					2014					2013
Revenues			$	1,883,533				$	1,947,616				$	1,938,025
Cost of revenues				1,326,848					1,333,566					1,323,257
Gross profit				556,685					614,050					614,768
Operating expenses
Sales and marketing				161,380					182,503					182,687
Product development				162,334					175,500					175,420
General and administrative				155,715					162,466					143,932
Amortization of intangible assets				31,673					43,619					42,019
Restructuring				(7,263	)				49,482					36,347
Goodwill impairment				-					-					174,226
Total operating expenses				503,839					613,570					754,631
Operating income (loss)				52,846					480					(139,863	)
Other income (expense)
Interest income				761					494					1,152
Interest expense				(12,289	)				(11,602	)				(10,686	)
Other income (expense), net				(4,216	)				(7,637	)				(4,003	)
Total other income (expense)				(15,744	)				(18,745	)				(13,537	)
Income (loss) before income taxes				37,102					(18,265	)				(153,400	)
Income tax benefit (provision)				(22,099	)				(4,035	)				2,466
Net income (loss)				15,003					(22,300	)				(150,934	)
Net income attributable to non-controlling interests				2,325					1,370					2,219
Net income (loss) attributable to Itron, Inc.			$	12,678				$	(23,670	)			$	(153,153	)
Earnings (loss) per common share - Basic			$	0.33				$	(0.60	)			$	(3.90	)
Earnings (loss) per common share - Diluted			$	0.33				$	(0.60	)			$	(3.90	)
Weighted average common shares outstanding - Basic				38,224					39,184					39,281
Weighted average common shares outstanding - Diluted				38,506					39,184					39,281

ITRON, INC.
SEGMENT INFORMATION
(Unaudited, in thousands)
			Year Ended December 31,
			2015					2014					2013
Revenues
Electricity			$	820,306				$	771,857				$	825,391
Gas				543,805					599,091					570,450
Water				519,422					576,668					542,184
Total Company			$	1,883,533				$	1,947,616				$	1,938,025
Gross profit
Electricity			$	225,446				$	200,249				$	219,852
Gas				185,559					211,623					207,577
Water				145,680					202,178					187,339
Total Company			$	556,685				$	614,050				$	614,768
Operating income (loss)
Electricity			$	31,104				$	(77,751	)			$	(237,279	)
Gas				67,471					76,101					82,176
Water				19,864					71,356					62,015
Corporate unallocated				(65,593	)				(69,226	)				(46,775	)
Total Company			$	52,846				$	480				$	(139,863	)
METER AND MODULE SUMMARY
(Units in thousands)
			Year Ended December 31,
			2015					2014					2013
Meters
Standard				17,560					18,740					17,850
Advanced and smart				7,290					6,090					5,930
Total meters				24,850					24,830					23,780
Stand-alone communication modules
Advanced and smart				5,840					5,770					5,550

ITRON, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
			December 31, 2015					December 31, 2014
ASSETS
Current assets
Cash and cash equivalents			$	131,018				$	112,371
Accounts receivable, net				330,895					346,547
Inventories				190,465					154,221
Deferred tax assets current, net				-					45,504
Other current assets				106,562					123,819
Total current assets				758,940					782,462
Property, plant, and equipment, net				190,256					207,152
Deferred tax assets noncurrent, net				109,387					74,439
Other long-term assets				52,726					46,965
Intangible assets, net				101,932					139,909
Goodwill				468,122					500,820
Total assets			$	1,681,363				$	1,751,747
LIABILITIES AND EQUITY
Current liabilities
Accounts payable			$	185,827				$	183,831
Other current liabilities				78,630					101,315
Wages and benefits payable				76,980					94,818
Taxes payable				14,859					21,951
Current portion of debt				11,250					30,000
Current portion of warranty				36,927					21,145
Unearned revenue				73,301					67,009
Total current liabilities				477,774					520,069
Long-term debt				359,962					293,969
Long-term warranty				17,585					15,403
Pension plan benefit liability				85,971					101,862
Deferred tax liabilities noncurrent, net				1,723					3,808
Other long-term obligations				115,645					118,094
Total liabilities				1,058,660					1,053,205
Equity
Preferred stock				-					-
Common stock				1,246,671					1,270,045
Accumulated other comprehensive loss, net				(200,607	)				(135,060	)
Accumulated deficit				(441,306	)				(453,984	)
Total Itron, Inc. shareholders' equity				604,758					681,001
Non-controlling interests				17,945					17,541
Total equity				622,703					698,542
Total liabilities and equity			$	1,681,363				$	1,751,747