<SEC-DOCUMENT>0001157523-17-001389.txt : 20170503
<SEC-HEADER>0001157523-17-001389.hdr.sgml : 20170503
<ACCEPTANCE-DATETIME>20170503160613
ACCESSION NUMBER:		0001157523-17-001389
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170503
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170503
DATE AS OF CHANGE:		20170503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ITRON INC /WA/
		CENTRAL INDEX KEY:			0000780571
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				911011792
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22418
		FILM NUMBER:		17809135

	BUSINESS ADDRESS:	
		STREET 1:		2111 N MOLTER ROAD
		CITY:			LIBERTY LAKE
		STATE:			WA
		ZIP:			99019
		BUSINESS PHONE:		5099249900

	MAIL ADDRESS:	
		STREET 1:		2111 N MOLTER ROAD
		CITY:			LIBERTY LAKE
		STATE:			WA
		ZIP:			99019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ITRON INC
		DATE OF NAME CHANGE:	19920724
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51552702.htm
<DESCRIPTION>ITRON, INC. 8-K
<TEXT>
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      <font style="font-family: Times New Roman; font-size: 12pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-family: Times New Roman; font-size: 12pt"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Washington,
      D.C. 20549</b></font><br><br>
    </p>
    <hr style="height: 1.0 pt; text-align: center; color: #000000; width: 30%">


    <p style="text-align: center">
      <br>
      <font style="font-family: Times New Roman; font-size: 18pt"><b>FORM 8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT</b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font><br><br>
    </p>
    <div style="text-align:center">
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          &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>May 3, 2017</b>
          </p>
        </td>
        <td style="width: 35%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date of Report (Date of Earliest Event Reported)
          </p>
        </td>
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    </div>
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    <table style="font-family: Times New Roman; margin-left:auto;margin-right:auto; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
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          &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 12pt"><b>ITRON, INC.</b></font>
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Exact Name of Registrant as Specified in its Charter)
          </p>
        </td>
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    <p style="text-align: center">

    </p>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Washington</b>
          </p>
        </td>
        <td style="width: 5%">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; width: 30%; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>000-22418</b>
          </p>
        </td>
        <td style="width: 5%">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; width: 30%; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>91-1011792</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px; width: 30%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or Other Jurisdiction<br>of Incorporation)
          </p>
        </td>
        <td style="width: 5%">

        </td>
        <td valign="top" style="text-align: center; padding-left: 0.0px; width: 30%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission File No.)
          </p>
        </td>
        <td style="width: 5%">

        </td>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px; width: 30%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer<br>Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="text-align:center">
    <table style="font-family: Times New Roman; margin-left:auto;margin-right:auto; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>2111 N. Molter Road, Liberty Lake, WA&#160;&#160;99019</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Address of Principal Executive Offices, Zip Code)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="text-align:center">
    <table style="font-family: Times New Roman; margin-left:auto;margin-right:auto; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td valign="top" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(509) 924-9900</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Registrant&#8217;s Telephone Number, Including Area Code)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
    <div style="text-align:center">
    <table style="font-family: Times New Roman; margin-left:auto;margin-right:auto; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; padding-left: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Former Name or Former Address, if Changed Since Last Report)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="text-align: justify">
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font><br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <p>

    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 10%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Item 2.02</b>
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Results of Operations and Financial Condition.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 90%">
          On May 3, 2017, Itron, Inc. (the &#8220;Company&#8221;) issued a press release
          announcing its financial results for the three months and quarter
          ended March 31, 2017. A copy of this press release and accompanying
          financial statements are attached as Exhibit 99.1.
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 10%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Item 9.01</b>
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Financial Statements and Exhibits.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: justify; white-space: nowrap; margin-left: 30.0px">
      (d)&#160;&#160;Exhibits.
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td valign="top" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 8%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Exhibit<br>Number
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td valign="top" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <br>
            Description
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: center; white-space: nowrap; padding-left: 0.0px; width: 8%; padding-right: 0.0px">
          99.1
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 90%">
          Press Release dated May 3, 2017.*
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="white-space: nowrap">
      *&#160;&#160;This exhibit is intended to be furnished and shall not be deemed
      &quot;filed&quot; for purposes of the Exchange Act.
    </p>
    <p>

    </p>
    <p>
      The information presented in this Current Report on Form 8-K may contain
      forward-looking statements within in the meaning of the Private
      Securities Litigation Reform Act of 1995.&#160;&#160;These statements relate to
      our expectations about revenues, operations, financial performance,
      earnings, earnings per share, cash flows and other financial results.
      Although we believe the estimates and assumptions upon which these
      forward-looking statements are based are reasonable, any of these
      estimates or assumptions could prove to be inaccurate and the
      forward-looking statements based on these estimates and assumptions
      could be incorrect. Our operations involve risks and uncertainties, many
      of which are outside our control, and any one of which, or a combination
      of which, could materially affect our results of operations and whether
      the forward-looking statements ultimately prove to be correct. Actual
      results and trends in the future may differ materially from those
      suggested or implied by the forward-looking statements depending on a
      variety of factors. Some of the factors that we believe could affect our
      results include our ability to execute on our restructuring plan, our
      ability to achieve estimated cost savings, the rate and timing of
      customer demand for our products, rescheduling of current customer
      orders, changes in estimated liabilities for product warranties, adverse
      impacts of litigation, changes in laws and regulations, our dependence
      on new product development and intellectual property, future
      acquisitions, changes in estimates for stock-based and bonus
      compensation, increasing volatility in foreign exchange rates,
      international business risks and other factors that are more fully
      described in our Annual Report on Form 10-K for the year ended December
      31, 2016 and other reports on file with the Securities and Exchange
      Commission. The Company undertakes no obligation to update this
      information.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURE</b></font>
    </p>
    <p style="text-align: justify">
      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.
    </p>
    <p>

    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 30%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 4%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 10.0px; width: 41%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            ITRON, INC.
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 30%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 41%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 20%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 30%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 41%">

        </td>
        <td style="width: 20%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px; width: 5%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px; width: 30%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            May 3, 2017
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px; width: 4%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td valign="top" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 10.0px; width: 41%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Robert H.A. Farrow
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 30%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 4%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 10.0px; width: 41%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Robert H.A. Farrow
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 30%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 4%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="text-align: left; padding-left: 10.0px" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Interim Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>EXHIBIT INDEX</b><br><br>
    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td valign="top" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 10.0px; width: 8%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Exhibit<br>Number
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px; width: 2%">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 10.0px; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Description
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 8%">

        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 0.0px; width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="text-align: left; white-space: nowrap; padding-left: 10.0px; width: 8%; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td valign="top" style="text-align: left; padding-left: 10.0px; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press release dated May 3, 2017.*
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>
      <br>

    </p>
    <p style="white-space: nowrap">
      *&#160;&#160;This exhibit is intended to be furnished and shall not be deemed
      &quot;filed&quot; for purposes of the Exchange Act.
    </p>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51552702ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2017 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Itron
      Announces First Quarter 2017 Financial Results</b></font>
    </p>
    <p>
      LIBERTY LAKE, Wash.--(BUSINESS WIRE)--May 3, 2017--Itron, Inc.
      (NASDAQ:ITRI) announced today financial results for its first quarter
      ended March&#160;31, 2017. Key financial metrics for the quarter include:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Revenues of $478 million, compared with $498 million in the first
        quarter of 2016;
      </li>
      <li style="margin-bottom: 10.0px">
        Gross margin of 32.9 percent, an increase of 10 basis points compared
        with the first quarter of 2016;
      </li>
      <li style="margin-bottom: 10.0px">
        GAAP diluted earnings per share of 40 cents, an increase of 54 percent
        compared with the first quarter of 2016; and
      </li>
      <li style="margin-bottom: 10.0px">
        Non-GAAP diluted earnings per share of 57 cents, an increase of 30
        percent compared with the first quarter of 2016.
      </li>
    </ul>
    <p>
      &#8220;Our first quarter results demonstrate a strong start to 2017,&#8221; said
      Philip Mezey, Itron&#8217;s president and chief executive officer. &quot;We
      increased earnings and cash flow in the quarter through our focus on
      better predictability and greater profitability in our operations.
      Looking forward, investments in our OpenWay Riva<sup>&#8482;</sup> IoT
      solution and differentiated software and services offerings, combined
      with our ongoing operational discipline, strongly position us to serve
      our customers and generate continued improvement in our financial
      results.&quot;
    </p>
    <p>
      <b>Summary of First Quarter Consolidated Financial Results</b><br>(All
      comparisons made are against the prior year period unless otherwise
      noted)
    </p>
    <p>
      <u>Revenue</u>
    </p>
    <p>
      Total revenue for the quarter decreased 4 percent to $478 million
      compared with $498 million in the first quarter of 2016. Changes in
      foreign currency exchange rates unfavorably impacted revenue by
      approximately $5 million for the quarter.
    </p>
    <p>
      Higher revenue in the Electricity segment was offset by decreased
      revenue in the Water and Gas segments. Electricity revenue increased 10
      percent, driven by smart metering projects in North America and
      Asia-Pacific regions. Water segment revenue decreased 19 percent
      primarily due to the completion of several large contracts in Europe,
      the Middle East and Africa (EMEA) and North America regions that
      contributed substantial revenues in the first quarter of 2016. Gas
      revenue decreased 11 percent, also primarily driven by the timing of
      contracts in EMEA and North America.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u>Gross Margin</u>
    </p>
    <p>
      Gross margin for the quarter improved to 32.9 percent compared with the
      prior year period margin of 32.8 percent. The improvement was driven by
      favorable product mix, primarily in the Gas segment. The Gas business
      achieved record gross margin of 41 percent in the quarter.
    </p>
    <p>
      <u>Operating Expenses</u>
    </p>
    <p>
      Operating expenses for the quarter were $127 million compared with $140
      million in 2016. The decrease was driven primarily by lower general and
      administrative expenses resulting from higher fees incurred in 2016
      related to a legal settlement and completion of our 2016 audit.
    </p>
    <p>
      <u>Operating Income, Net Income and Earnings per Share</u>
    </p>
    <p>
      GAAP operating income was $30 million for the quarter compared with $24
      million in 2016. Non-GAAP operating income also improved to $38 million
      for the quarter compared with $32 million in 2016.
    </p>
    <p>
      Net income for the quarter was $16 million, or 40 cents per diluted
      share, compared with net income of $10 million, or 26 cents per diluted
      share, in 2016. Non-GAAP net income for the quarter increased to $22
      million, or 57 cents per diluted share, compared with $17 million, or 44
      cents per diluted share, in 2016.
    </p>
    <p>
      The increases in GAAP and non-GAAP operating income were driven by
      improved gross margin and lower operating expenses. GAAP and non-GAAP
      earnings per diluted share reflect the company's higher operating income
      in addition to lower effective tax rates.
    </p>
    <p>
      <u>Cash Flow</u>
    </p>
    <p>
      Net cash provided by operating activities was $63 million in the first
      quarter of 2017 compared with $34 million in the same quarter in 2016.
      Free cash flow was $54 million for the first quarter compared with $25
      million in the prior year quarter. The increases in operating and free
      cash flow were driven by strong working capital management, offsetting
      higher variable compensation payments.
    </p>
    <p>
      <b>Other Measures</b>
    </p>
    <p>
      Bookings in the quarter totaled $424 million, an increase of 8 percent
      compared with bookings in the first quarter of 2016. Total backlog was
      $1.6 billion and 12-month backlog was $819 million at the end of the
      quarter, up 7 percent and 4 percent, respectively, compared with the
      first quarter of 2016.
    </p>
    <p>
      <b>Earnings Conference Call</b>
    </p>
    <p>
      Itron will host a conference call to discuss the financial results and
      guidance contained in this release at 5:00 p.m. EDT on May&#160;3, 2017. The
      call will be webcast in a listen-only mode. Webcast information and
      conference call materials will be made available 10 minutes before the
      start of the call and will be accessible on Itron&#8217;s website at <u>http://investors.itron.com/events.cfm</u>.
      A replay of the audio webcast will be made available at <u>http://investors.itron.com/events.cfm</u>.
      A telephone replay of the conference call will be available through May
      8, 2017. To access the telephone replay, dial (888) 203-1112 (Domestic)
      or (719) 457-0820 (International) and enter passcode 9719829.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About Itron</b>
    </p>
    <p>
      Itron is a world-leading technology and services company dedicated to
      the resourceful use of energy and water. We provide comprehensive
      solutions that measure, manage and analyze energy and water. Our broad
      product portfolio includes electricity, gas, water and thermal energy
      measurement devices and control technology; communications systems;
      software; as well as managed and consulting services. With thousands of
      employees supporting nearly 8,000 customers in more than 100 countries,
      Itron applies knowledge and technology to better manage energy and water
      resources. Together, we can create a more resourceful world. Join us: <u>www.itron.com</u>.
    </p>
    <p>
      Itron<sup>&#174;</sup> and OpenWay<sup>&#174;</sup> are registered
      trademarks of Itron, Inc. All third party trademarks are property of
      their respective owners and any usage herein does not suggest or imply
      any relationship between Itron and the third party unless expressly
      stated.
    </p>
    <p>
      <b>Forward Looking Statements</b>
    </p>
    <p>
      This release contains forward-looking statements within in the meaning
      of the Private Securities Litigation Reform Act of 1995. These
      statements relate to our expectations about revenues, operations,
      financial performance, earnings, earnings per share, cash flows and
      restructuring activities including headcount reductions and other cost
      savings initiatives. Although we believe the estimates and assumptions
      upon which these forward-looking statements are based are reasonable,
      any of these estimates or assumptions could prove to be inaccurate and
      the forward-looking statements based on these estimates and assumptions
      could be incorrect. Our operations involve risks and uncertainties, many
      of which are outside our control, and any one of which, or a combination
      of which, could materially affect our results of operations and whether
      the forward-looking statements ultimately prove to be correct. Actual
      results and trends in the future may differ materially from those
      suggested or implied by the forward-looking statements depending on a
      variety of factors. Some of the factors that we believe could affect our
      results include our ability to execute on our restructuring plan, our
      ability to achieve estimated cost savings, the rate and timing of
      customer demand for our products, rescheduling of current customer
      orders, changes in estimated liabilities for product warranties, adverse
      impacts of litigation, changes in laws and regulations, our dependence
      on new product development and intellectual property, future
      acquisitions, changes in estimates for stock-based and bonus
      compensation, increasing volatility in foreign exchange rates,
      international business risks and other factors that are more fully
      described in our Annual Report on Form 10-K for the year ended December
      31, 2016 and other reports on file with the Securities and Exchange
      Commission. Itron undertakes no obligation to update or revise any
      information in this press release.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Non-GAAP Financial Information</b>
    </p>
    <p>
      To supplement our consolidated financial statements presented in
      accordance with GAAP, we use certain non-GAAP financial measures,
      including non-GAAP operating expense, non-GAAP operating income,
      non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, adjusted
      EBITDA margin, constant currency and free cash flow. We provide these
      non-GAAP financial measures because we believe they provide greater
      transparency and represent supplemental information used by management
      in its financial and operational decision making. We exclude certain
      costs in our non-GAAP financial measures as we believe the net result is
      a measure of our core business. The company believes these measures
      facilitate operating performance comparisons from period to period by
      eliminating potential differences caused by the existence and timing of
      certain expense items that would not otherwise be apparent on a GAAP
      basis. Non-GAAP performance measures should be considered in addition
      to, and not as a substitute for, results prepared in accordance with
      GAAP. Our non-GAAP financial measures may be different from those
      reported by other companies. A more detailed discussion of why we use
      non-GAAP financial measures, the limitations of using such measures, and
      reconciliations between non-GAAP and the nearest GAAP financial measures
      are included in this press release.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>CONSOLIDATED STATEMENTS OF OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          (Unaudited, in thousands, except per share data)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Revenues
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          477,592
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          497,590
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Cost of revenues
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          320,367
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          334,387
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Gross profit
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          157,225
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          163,203
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Operating expenses
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Sales and marketing
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          41,468
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          40,767
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Product development
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          40,868
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          45,346
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          General and administrative
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          37,246
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          45,069
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,549
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          6,210
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,052
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,237
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Total operating expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          127,183
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          139,629
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          30,042
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          23,574
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Other income (expense)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Interest income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          269
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          271
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Interest expense
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,674
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,918
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Other income (expense), net
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,576
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (1,517
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Total other income (expense)
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (4,981
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (4,164
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Income before income taxes
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          25,061
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          19,410
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Income tax provision
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (9,047
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (8,626
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          16,014
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          10,784
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Net income attributable to non-controlling interests
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          169
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          695
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Net income attributable to Itron, Inc.
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          15,845
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,089
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Earnings per common share - Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.41
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.27
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Earnings per common share - Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.40
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.26
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Weighted average common shares outstanding - Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          38,474
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          38,059
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Weighted average common shares outstanding - Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          39,215
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          38,376
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>SEGMENT INFORMATION</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          (Unaudited, in thousands)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>Revenues</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Electricity
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          238,751
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          217,295
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Gas
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          124,211
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          139,256
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Water
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          114,630
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          141,039
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total Company
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          477,592
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          497,590
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>Gross profit</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Electricity
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          67,192
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          64,586
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Gas
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          50,504
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          48,577
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Water
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          39,529
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          50,040
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total Company
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          157,225
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          163,203
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>Operating income (loss)</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Electricity
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16,862
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,632
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Gas
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          21,256
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          16,299
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Water
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          8,735
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          18,076
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Corporate unallocated
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (16,811
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (21,433
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total Company
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          30,042
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          23,574
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>METER AND MODULE SUMMARY</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          (Units in thousands)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          <b>Meters</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Standard
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,010
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,370
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Smart
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,440
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,190
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total meters
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          6,450
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          6,560
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>Stand-alone communication modules</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Smart
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,400
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,460
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>CONSOLIDATED BALANCE SHEETS</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          (Unaudited, in thousands)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="3">
          <b>March 31, 2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="3">
          <b>December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="3">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Current assets
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          187,928
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          133,565
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          344,411
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          351,506
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Inventories
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          178,060
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          163,049
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Other current assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          95,424
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          84,346
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Total current assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          805,823
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          732,466
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Property, plant, and equipment, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          178,647
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          176,458
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Deferred tax assets, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          106,896
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          94,113
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Other long-term assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          50,166
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          50,129
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Intangible assets, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          69,485
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          72,151
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Goodwill
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          462,906
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          452,494
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,673,923
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,577,811
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="3">
          <b>LIABILITIES AND EQUITY</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Current liabilities
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Accounts payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          194,012
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          172,711
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Other current liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          46,359
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          43,625
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Wages and benefits payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          82,010
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          82,346
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Taxes payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          18,736
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          10,451
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Current portion of debt
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          15,469
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          14,063
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Current portion of warranty
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          23,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          24,874
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Unearned revenue
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          84,705
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          64,976
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Total current liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          464,791
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          413,046
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Long-term debt
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          288,266
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          290,460
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Long-term warranty
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          18,036
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          18,428
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Pension benefit obligation
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          87,663
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          84,498
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Deferred tax liabilities, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,214
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,073
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Other long-term obligations
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          109,346
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          117,953
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Total liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          971,316
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          927,458
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Equity
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Common stock
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,276,298
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,270,467
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Accumulated other comprehensive loss, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (213,618
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (229,327
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Accumulated deficit
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (379,326
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (409,536
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Total Itron, Inc. shareholders' equity
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          683,354
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          631,604
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Non-controlling interests
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          19,253
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          18,749
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Total equity
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          702,607
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          650,353
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px">
          Total liabilities and equity
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,673,923
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          1,577,811
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="11">
          <b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          (Unaudited, in thousands)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Operating activities
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16,014
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,784
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Adjustments to reconcile net income to net cash provided by
          operating activities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          14,378
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          16,674
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Stock-based compensation
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          5,211
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,900
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of prepaid debt fees
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          266
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          276
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Deferred taxes, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          882
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,507
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring, non-cash
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          &#8212;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,114
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Other adjustments, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          946
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          66
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Changes in operating assets and liabilities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Accounts receivable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          13,119
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (33,308
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Inventories
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (11,274
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,244
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Other current assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (11,169
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (5,457
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Other long-term assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          646
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,945
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Accounts payable, other current liabilities, and taxes payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          28,277
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          10,161
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Wages and benefits payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (1,796
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          9,349
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Unearned revenue
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          14,020
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          14,343
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Warranty
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,303
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (4,045
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Other operating, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (3,960
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (748
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          63,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          33,805
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Investing activities
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Acquisitions of property, plant, and equipment
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (9,122
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (8,791
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Other investing, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (78
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          558
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net cash used in investing activities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (9,200
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (8,233
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Financing activities
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Payments on debt
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,813
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (23,406
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Issuance of common stock
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          405
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          660
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Other financing, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          155
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,289
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net cash used in financing activities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,253
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (25,035
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Effect of foreign exchange rate changes on cash and cash equivalents
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,559
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,060
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          Increase in cash and cash equivalents
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          54,363
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,597
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Cash and cash equivalents at beginning of period
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          133,565
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          131,018
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="3">
          Cash and cash equivalents at end of period
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          187,928
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          132,615
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About Non-GAAP Financial Measures</b>
    </p>
    <p>
      The accompanying press release contains non-GAAP financial measures. To
      supplement our consolidated financial statements, which are prepared in
      accordance with GAAP, we use certain non-GAAP financial measures,
      including non-GAAP operating expense, non-GAAP operating income,
      non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, constant
      currency and free cash flow. The presentation of this financial
      information is not intended to be considered in isolation or as a
      substitute for, or superior to, the financial information prepared and
      presented in accordance with GAAP, and other companies may define such
      measures differently. For more information on these non-GAAP financial
      measures please see the table captioned &#8220;Reconciliations of Non-GAAP
      Financial Measures to Most Directly Comparable GAAP Financial Measures.&#8221;
    </p>
    <p>
      We use these non-GAAP financial measures for financial and operational
      decision making and/or as a means for determining executive
      compensation. Management believes that these non-GAAP financial measures
      provide meaningful supplemental information regarding our performance
      and ability to service debt by excluding certain expenses that may not
      be indicative of our recurring core operating results. These non-GAAP
      financial measures facilitate management&#8217;s internal comparisons to our
      historical performance as well as comparisons to our competitors&#8217;
      operating results. Our executive compensation plans exclude non-cash
      charges related to amortization of intangibles and certain discrete cash
      and non-cash charges such as purchase accounting adjustments,
      restructuring charges or goodwill impairment charges. We believe that
      both management and investors benefit from referring to these non-GAAP
      financial measures in assessing our performance and when planning,
      forecasting and analyzing future periods. We believe these non-GAAP
      financial measures are useful to investors because they provide greater
      transparency with respect to key metrics used by management in its
      financial and operational decision making and because they are used by
      our institutional investors and the analyst community to analyze the
      health of our business.
    </p>
    <p>
      <u>Non-GAAP operating expenses and non-GAAP operating income</u> - We
      define non-GAAP operating expenses as operating expenses excluding
      certain expenses related to the amortization of intangible assets,
      restructuring, acquisitions and goodwill impairment. We define non-GAAP
      operating income as operating income excluding the expenses related to
      the amortization of intangible assets, restructuring, acquisitions and
      goodwill impairment. We consider these non-GAAP financial measures to be
      useful metrics for management and investors because they exclude the
      effect of expenses that are related to previous acquisitions and
      restructuring projects. By excluding these expenses, we believe that it
      is easier for management and investors to compare our financial results
      over multiple periods and analyze trends in our operations. For example,
      in certain periods expenses related to amortization of intangible assets
      may decrease, which would improve GAAP operating margins, yet the
      improvement in GAAP operating margins due to this lower expense is not
      necessarily reflective of an improvement in our core business. There are
      some limitations related to the use of non-GAAP operating expenses and
      non-GAAP operating income versus operating expense and operating income
      calculated in accordance with GAAP. We compensate for these limitations
      by providing specific information about the GAAP amounts we have
      excluded from our non-GAAP operating expense and non-GAAP operating
      income and evaluating non-GAAP operating expense and non-GAAP operating
      income together with GAAP operating expense and GAAP operating income.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <u>Non-GAAP net income and non-GAAP diluted EPS</u> - We define non-GAAP
      net income as net income attributable to Itron, Inc. excluding the
      expenses associated with amortization of intangible assets,
      restructuring, acquisitions, goodwill impairment, amortization of debt
      placement fees and the tax effect of excluding these expenses. We define
      non-GAAP diluted EPS as non-GAAP net income divided by the weighted
      average shares, on a diluted basis, outstanding during each period. We
      consider these financial measures to be useful metrics for management
      and investors for the same reasons that we use non-GAAP operating
      income. The same limitations described above regarding our use of
      non-GAAP operating income apply to our use of non-GAAP net income and
      non-GAAP diluted EPS. We compensate for these limitations by providing
      specific information regarding the GAAP amounts excluded from these
      non-GAAP measures and evaluating non-GAAP net income and non-GAAP
      diluted EPS together with GAAP net income attributable to Itron, Inc.
      and GAAP diluted EPS.
    </p>
    <p>
      <u>Adjusted EBITDA</u> - We define adjusted EBITDA as net income (a)
      minus interest income, (b) plus interest expense, depreciation,
      amortization of intangible assets, restructuring, acquisition related
      expense, goodwill impairment and (c) excluding the tax expense or
      benefit. Management uses adjusted EBITDA as a performance measure for
      executive compensation. A limitation to using adjusted EBITDA is that it
      does not represent the total increase or decrease in the cash balance
      for the period and the measure includes some non-cash items and excludes
      other non-cash items. Additionally, the items that we exclude in our
      calculation of adjusted EBITDA may differ from the items that our peer
      companies exclude when they report their results. We compensate for
      these limitations by providing a reconciliation of this measure to GAAP
      net income.
    </p>
    <p>
      <u>Free cash flow</u> - We define free cash flow as net cash provided by
      operating activities less cash used for acquisitions of property, plant
      and equipment. We believe free cash flow provides investors with a
      relevant measure of liquidity and a useful basis for assessing our
      ability to fund our operations and repay our debt. The same limitations
      described above regarding our use of adjusted EBITDA apply to our use of
      free cash flow. We compensate for these limitations by providing
      specific information regarding the GAAP amounts and reconciling to free
      cash flow.
    </p>
    <p>
      <u>Constant currency</u> - We refer to the impact of foreign currency
      exchange rate fluctuations in our discussions of financial results,
      which references the differences between the foreign currency exchange
      rates used to translate operating results from local currencies into
      U.S. dollars for financial reporting purposes. We also use the term
      &#8220;constant currency,&#8221; which represents financial results adjusted to
      exclude changes in foreign currency exchange rates as compared with the
      rates in the comparable prior year period. We calculate the constant
      currency change as the difference between the current period results and
      the comparable prior period&#8217;s results restated using current period
      currency foreign exchange rates.
    </p>
    <p>
      The accompanying tables have more detail on the GAAP financial measures
      that are most directly comparable to the non-GAAP financial measures and
      the related reconciliations between these financial measures.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="4">
          (Unaudited, in thousands, except per share data)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="4">
          <b>TOTAL COMPANY RECONCILIATIONS</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP NET INCOME &amp; DILUTED EPS</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          GAAP net income attributable to Itron, Inc.
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          15,845
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,089
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,549
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          6,210
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of debt placement fees
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          241
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          247
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,052
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,237
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          333
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Income tax effect of non-GAAP adjustments
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (1,834
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (1,955
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Non-GAAP net income attributable to Itron, Inc.
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          22,186
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16,831
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Non-GAAP diluted EPS
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.57
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          0.44
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Weighted average common shares outstanding - Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          39,215
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          38,376
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>ADJUSTED EBITDA</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          GAAP net income attributable to Itron, Inc.
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          15,845
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,089
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Interest income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (269
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (271
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Interest expense
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,674
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,918
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Income tax provision
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          9,047
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          8,626
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          14,378
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          16,674
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,052
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,237
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          333
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Adjusted EBITDA
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          45,060
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          40,276
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>FREE CASH FLOW</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          63,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          33,805
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisitions of property, plant, and equipment
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (9,122
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (8,791
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Free Cash Flow
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          54,135
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          25,014
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING INCOME</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          30,042
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          23,574
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          4,549
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          6,210
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,052
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,237
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          333
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Non-GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          37,976
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          32,024
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING EXPENSES</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          GAAP operating expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          127,183
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          139,629
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (4,549
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (6,210
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (3,052
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (2,237
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (333
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (3
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Non-GAAP operating expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          119,249
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          131,179
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="12">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>ITRON, INC.</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES</b>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: center; padding-left: 0.0px" colspan="12">
          <b>TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="4">
          (Unaudited, in thousands)
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="4">
          <b>SEGMENT RECONCILIATIONS</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: center; border-bottom-style: solid; border-bottom-width: 1.0pt; padding-left: 0.0px" colspan="7">
          <b>Three Months Ended March 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="3">
          <b>2016</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING INCOME - ELECTRICITY</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Electricity - GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16,862
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,632
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          2,362
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3,250
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (176
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          528
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          3
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Electricity - Non-GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          19,048
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          14,413
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING INCOME - GAS</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Gas - GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          21,256
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          16,299
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,277
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,619
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,084
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,264
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Gas - Non-GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          23,617
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          19,182
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING INCOME - WATER</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Water - GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          8,735
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          18,076
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          910
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,341
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,018
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          (64
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Water - Non-GAAP operating income
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          10,663
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          19,353
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="3">
          <b>NON-GAAP OPERATING INCOME - CORPORATE UNALLOCATED</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px" colspan="2">
          Corporate unallocated - GAAP operating loss
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (16,811
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (21,433
        </td>
        <td valign="bottom" style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: left; padding-left: 0.0px">
          Restructuring
        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          1,126
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          509
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 2.0px; text-align: left; padding-left: 0.0px">
          Acquisition-related expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          333
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: solid; border-bottom-width: 1.0pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" colspan="2">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-style: solid; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-bottom: 4.0px; text-align: left; padding-left: 0.0px" colspan="2">
          Corporate unallocated - Non-GAAP operating loss
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (15,352
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
        <td style="border-bottom-color: black; border-bottom-style: double; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          $
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: right; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          (20,924
        </td>
        <td valign="bottom" style="border-bottom-color: black; text-align: left; border-bottom-style: double; border-bottom-width: 2.25pt; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px">
          )
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><b>Itron, Inc.</b><br>Barbara Doyle<br>Vice President,
      Investor Relations<br>509-891-3443<br>or<br>Rebecca Hussey<br>Program
      Manager, Investor Relations<br>509-891-3574
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
