) has introduced a simplified smart grid ecosystem approach,
Nexergy, in Europe. Nexergy coupled with meters, communication
technology and software will address any specific business needs.
It empowers utilities with technologies that are faster and cost
Nexergy is a collection of five distinct ecosystem architectures -
Nexergy P2P, Nexergy PLC, Nexergy P2H, Nexergy P2C and Nexergy SPS.
The portfolio will benefit utilities in revenue protection,
renewable energy integration, consumer engagement and load control
Itron decided to launch Nexergy keeping in mind the soaring demand
for smart grid solutions that meet the business requirements. The
technology that fortifies Itron's smart grid portfolio simplifies
deployment of smart grids, enabling it to cater to a wider customer
base across Europe, the Middle East and Africa.
Itron aims at upgrading its smart meter platform in Europe.
Earlier, the company decided to roll out smart meter gas platform
in Europe providing smart meter technology. The gas meters empower
utilities to better manage their resources for a sustainable
Recently, Itron won the nation's largest gas metering contract from
Southern California Gas Company, a regulated subsidiary of
). Itron will be supplying gas meter and gas regulators to the gas
Itron is investing significantly in offering innovative smart meter
solutions to serve greater number of customers. The move will
enable it to increase its market share in the industry.
The company is also undertaking restructuring initiatives to
increase its efficiency and lowering manufacturing costs. It
anticipates annualized cost savings of $15 million in 2012, which
is expected to further increase to $30 million in 2013.
But at the same time, Itron expects to book associated pre-tax
charges in the range of $75-$80 million, a major portion of which
will be incurred in 2012. Therefore, higher operating
expenses are likely to create margin headwinds in 2012 and first
half of 2013.
Based in Liberty Lake, Washington, Itron Inc., along with its
subsidiaries, is one of the principal technology providers to the
energy and water industries worldwide. The company's broad product
portfolio includes electricity, water, gas and thermal energy
measurement and control technology along with communications
systems, software and professional services.
Itron retains a short-term Zacks #3 Rank (Hold). We have a
long-term Neutral recommendation on the stock.
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