Science & Technology
Science and Technology
Science and Technology
Thu, January 22, 2009 Iteris Announces Early Retirement of $1.5 Million in Convertible Debt
SANTA ANA, Calif.--([ BUSINESS WIRE ])--Iteris, Inc. (AMEX: ITI), a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced the early retirement of $1.5 million in convertible debentures for $1.47 million, saving the Company $30,000 in principal and approximately $12,000 in future interest payments.
"Our strong operating income performance and positive operating cash flow over the past several quarters enabled the Company to largely pay down borrowings under our line of credit, and we took advantage of this opportunity to reduce our long-term debt," said Abbas Mohaddes, President and CEO of Iteris. "In today's environment, it is increasingly important to reduce our debt levels and strengthen our balance sheet, and we are pleased that our financial performance has enabled us to achieve this important goal."
The debentures, originally issued by the Company in May 2004, were due and payable in full in May 2009. The debentures provided for 6.0% annual interest, payable quarterly, and were convertible into the Company's common stock at an initial conversion price of $3.61 per share, subject to certain adjustments, including adjustments for dilutive issuances. Including this redemption, the Company has retired $9.1 million of the original $9.85 million debentures outstanding through the use of $2.1 million of its own cash and $6.5 million in borrowings on the Company's new credit facility, saving approximately $500,000 in principal. The Company expects to retire the remaining $750,000 of convertible debentures in May 2009.
About Iteris, Inc.
Iteris, Inc. is a leader in the traffic management market focused on the development and application of advanced technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion, and improve the safety of surface transportation systems. Combining outdoor image processing, traffic engineering, and information technology, Iteris offers a broad range of Intelligent Transportation Systems and driver safety solutions to customers worldwide. Iteris is headquartered in Santa Ana, California with offices throughout the U.S., Europe, and Asia. Investors are encouraged to contact us at 888-329-4483, or at [ www.iteris.com ].
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "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 Company's financial position and strength.
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 ]).
