Iteris Awarded $2 Million Texas DOT IDIQ Contract for Smart Mobility and Traffic Signal Timing Services

Rhea-AI Summary

Iteris has been awarded a five-year IDIQ contract worth up to $2 million by the Texas Department of Transportation (TxDOT) to provide smart mobility and traffic signal timing services in the Houston District. This contract marks the fourth consecutive signal timing contract between Iteris and TxDOT Houston District and the eighth major contract awarded by TxDOT to Iteris in the past six years. The partnership aims to reduce traffic congestion, enhance safety, and promote sustainability across over 1,000 signalized intersections in Houston. Iteris has so far provided $15 million worth of ITS, traffic engineering, and signal timing services to TxDOT.

Positive

• Iteris awarded $2 million five-year IDIQ contract by TxDOT.
• Fourth consecutive traffic signal timing contract with TxDOT Houston District.
• Eighth major contract with TxDOT in six years.
• Contract aims to improve traffic congestion, safety, and sustainability in Houston.

Negative

• None.

Market Research Analyst

Iteris's recent contract win with the Texas Department of Transportation (TxDOT) is significant, highlighting the company's strong foothold in the smart mobility sector. The five-year, $2 million IDIQ contract allows Iteris to provide traffic signal timing and operational improvements in the Houston District, a large metropolitan area with over 1,000 signalized intersections. This sustained relationship with TxDOT, including seven prior contracts, underlines Iteris's reliability and expertise in smart mobility solutions.

For retail investors, the contract signifies steady revenue streams and reinforces the company's position as a trusted partner in a key strategic market. The focus on reducing traffic congestion, improving safety and increasing sustainability aligns with current trends in infrastructure improvements, which could maintain investor interest and possibly drive stock value.

Iteris's continuous work with TxDOT also indicates potential future contracts, further solidifying their market presence. Retail investors should note the firm’s consistency in securing long-term agreements, which can contribute to financial stability and growth.

Financial Analyst

From a financial perspective, Iteris's new contract with TxDOT adds a predictable revenue stream of $2 million over five years. While not transformational in size, this contract further validates Iteris’s strategic focus and operational strength in smart mobility solutions. The cumulative $15 million from previous contracts with TxDOT over the past six years showcases a strong ongoing client relationship, which is valuable for long-term financial health.

This recurring business underscores Iteris's role in a niche yet expanding market. The financial stability derived from such contracts supports continuous investment in R&D and operational capabilities, which can lead to more significant opportunities. Investors should appreciate the steady cash flow, but it's pertinent to also consider the scale of these deals in the broader context of Iteris's overall revenue and market position.

Additionally, the steady contract flow may provide a buffer against market volatility, offering some predictability in earnings, which can be reassuring for both institutional and retail investors.

Iteris expertise will help the six-county Houston District reduce traffic congestion, improve safety, and increase sustainability

AUSTIN, Texas--(BUSINESS WIRE)-- Iteris, Inc. (NASDAQ: ITI), the world’s trusted technology ecosystem for smart mobility infrastructure management, today announced that it has been awarded a five-year indefinite delivery/indefinite quantity (IDIQ) contract with a value of up to $2 million by the Texas Department of Transportation (TxDOT).

Iteris announced that it has been awarded a five-year indefinite delivery/indefinite quantity (IDIQ) contract with a value of up to $2 million by the Texas Department of Transportation (TxDOT). (Photo: Business Wire)

Under the terms of this contract, Iteris will continue to provide traffic signal timing and operational improvements at key intersections throughout the TxDOT Houston District, one of the largest metropolitan areas in the United States with over 1,000 signalized intersections.

“We are extremely pleased to extend our close working relationship with the state of Texas, one of the largest and most progressive transportation markets in the U.S.,” said Cliff Heise, regional vice president, mobility professional services at Iteris. “Texas is a key strategic market for Iteris and, with this being the fourth consecutive TxDOT Houston District Traffic Signal Timing IDIQ awarded to Iteris, we’re excited for the chance to continue our work increasing efficiency and creating a better, more sustainable travel experience in the region.”

This agreement is the eighth major contract awarded to Iteris by TxDOT in the past six years and the fourth consecutive signal timing contract. Iteris has provided $15 million of Intelligent Transportation System (ITS), traffic engineering and traffic signal timing/operations support to TxDOT.

About Iteris, Inc.

Iteris is the world’s trusted technology ecosystem for smart mobility infrastructure management. Delivered through Iteris’ ClearMobility® Platform, our cloud-enabled end-to-end solutions monitor, visualize and optimize mobility infrastructure around the world, and help bridge legacy technology silos to unlock the future of transportation. That’s why more than 10,000 public agencies and private-sector enterprises focused on mobility rely on Iteris every day. Visit www.iteris.com for more information, and join the conversation on Twitter, LinkedIn and Facebook.

Iteris Forward-Looking Statements

This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," “feels,” "anticipates," "expects," "intends," “outlooks,” “targets,” "plans," "seeks," "estimates,” "may," “could,” “should,” “will,” "can," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the awarded contract and statements about our professional services. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict, and actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, our ability to provide our services in a cost-efficient manner; government funding and budgetary delays, issues, and timing; adverse impacts related to project scheduling delays and cancellation of a project; and the adverse impacts of general economic, political, and other conditions in the markets we address. Further information on Iteris, Inc., including additional risk factors that may affect our forward-looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and our other SEC filings that are available through the SEC’s website (www.sec.gov).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627265118/en/

Media Contact

Breanna Wallace

Tel: (949) 996-5348

Email: brwallace@iteris.com

Investor Relations

MKR Investor Relations, Inc.

Todd Kehrli

Tel: (213) 277-5550

Email: todd@mkrir.com

Source: Iteris, Inc.

FAQ

What is Iteris' recent contract with TxDOT about?

Iteris has been awarded a five-year IDIQ contract worth up to $2 million by TxDOT to provide smart mobility and traffic signal timing services in the Houston District.

How many signal timing contracts has Iteris been awarded by TxDOT Houston District?

This is the fourth consecutive signal timing contract awarded to Iteris by TxDOT Houston District.

What is the value of the latest Iteris contract with TxDOT?

The latest contract awarded to Iteris by TxDOT is worth up to $2 million.

How many major contracts has Iteris received from TxDOT in the past six years?

Iteris has received eight major contracts from TxDOT in the past six years.

What areas will be impacted by Iteris' new contract with TxDOT?

Iteris' contract will impact over 1,000 signalized intersections in the Houston District, aiming to reduce traffic congestion, improve safety, and enhance sustainability.