Iteris Inc (NASDAQ:ITI) stock fell 3.39% (As on June 14, 11:20:15 AM UTC-4, Source: Google Finance) after the company reported Net income in the fourth quarter was approximately $0.1 million, or $0.00 per share, compared with a net loss of approximately $0.5 million, or $(0.01) per share, in the same quarter a year ago. The improvement was primarily attributable to the reduced negative impact on gross margins caused by supply chain constraints and the resulting high raw material costs. The company had reported the adjusted revenue growth of 1 percent to $42.8 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $42.54 million. This growth was driven primarily by increased services revenue, in particular for consulting services and software. Operating expenses in the fourth quarter increased $2.0 million to $16.0 million, with almost half of the increase due to higher litigation expenses, and partially the result of higher research and development costs. Adjusted EBITDA in the fourth quarter of fiscal 2024 was approximately $2.8 million, or 6.7% of total revenues, compared with approximately $1.4 million, or 3.3% of total revenues. Cash and cash equivalents increased $4.7 million, resulting in a balance of $25.9 million as of March 31, 2024.

Moreover, the company delivered gross margins of 37.4%, up 558 basis points year over year. Record net new bookings was of $53.3 million, up 20% year over year. Backlog was of $123.8 million as of March 31, 2024, up 8% year over year

For fiscal year 2025, total revenues is expected to be in the range of $188.0 million to $194.0 million, representing organic growth of 11% year over year at the mid-point of the guidance range. Adjusted EBITDA margin is expected to be in the range of 8.0% to 10.0% of revenue, representing a 150 basis points improvement at the midpoint of the guidance range.

For the first quarter of fiscal year 2025, total revenues is expected to be in the range of $43.5 million to $45.5 million, representing organic growth of 2% year over year at the mid-point of the guidance range due to the timing of new product introduction cycles. Adjusted EBITDA margin is expected to be in the range in the range of 5.5% to 6.5%, representing a 324 basis points decline year over year at the midpoint of the guidance range due to anticipated investments in research and development and sales to support recent and planned new product releases.