Revenue during the quarter went down marginally by 0.15 percent to $495.71 million from $496.45 million in the previous year period. Gross margin for the quarter expanded 90 basis points over the previous year period to 31.60 percent. Total expenses were 93.80 percent of quarterly revenues, down from 96.70 percent for the same period last year. This has led to an improvement of 290 basis points in operating margin to 6.20 percent.

Operating income for the quarter was $30.75 million, compared with $16.38 million in the previous year period.

However, the adjusted operating income for the quarter stood at $44.66 million compared to $25.90 million in the prior year period. At the same time, adjusted operating margin improved 379 basis points in the quarter to 9.01 percent from 5.22 percent in the last year period.

"Itrons fourth quarter results reflect a strong finish to a year of significant improvement in financial and operational performance," said Philip Mezey, Itron’s president and chief executive officer. "Highlights from the quarter include improved earnings and robust revenue growth in the Electricity segment driven by growth in smart solutions. Adjusted EBITDA increased by more than 50 percent to $54 million driven by our focus on predictability, profitability and growth. This level of EBITDA equates to 11 percent of revenues, demonstrating that we are making progress toward our mid-teens goal. In addition, the boards authorization of a new share repurchase program reflects confidence in Itrons profitable growth initiatives, financial flexibility and long-term business outlook."

Itron, Inc. projects revenue to be in the range of $1,900 million to $2,000 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.80 to $3.10 on adjusted basis.

The company has spent $47.53 million cash to meet investing activities during the year as against cash outgo of $48.95 million in the last year.

The company has spent $63.02 million cash to carry out financing activities during the year as against cash inflow of $7.74 million in the last year period.

Cash and cash equivalents stood at $133.56 million as on Dec. 31, 2016, up 1.94 percent or $2.55 million from $131.02 million on Dec. 31, 2015.

Working capital increases
Itron, Inc. has recorded an increase in the working capital over the last year. It stood at $319.42 million as at Dec. 31, 2016, up 13.61 percent or $38.25 million from $281.17 million on Dec. 31, 2015. Current ratio was at 1.77 as on Dec. 31, 2016, up from 1.59 on Dec. 31, 2015.

Cash conversion cycle (CCC) was almost stable at 31 days for the quarter, when compared with the last year period. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.

Days inventory outstanding has decreased to 22 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 25 for the same period last year.