don't think capital spending is the issue. I think market share is the issue. If they have decreased revenue receipts, it won't be because of decreased utility cap ex.
The big industrials are moving into this space. With the economy slowing down, their production capacity is open to manufacturing smart grid products. They have the know-how to produce this and with their size, they'll have to capacity to cut prices, increase market share, and drive down profits of the little guys like ITRI.
This, I believe, is the threat facing ITRI and other smart grid stx like ESE and ELON. If HPEVs and intermittent renewables are going to be part of this economy, then the smart grid expeditures are a foregone conclusion. The question is, who's going to get those big ass orders, year in and year out? The industrials like GE, Honeywell, IBM, Johnson Controls, OR the little tech co.s like Itron, ESE or Elon?
...as for your two year "thing", I think you are talking about the recession lasting two years and the affects from it, right? Well, if the recession lasts two years to mid or late 2010 like many predict, then the big industrials will not return to their normal and full business productivity and will otherwise not have any capacity constraints to meet smart grid production orders, and will continue to have pricing power over the little tech co.s like Itron. That's not good for stockholders looking for appreciation.
Maybe a small impact, but I doubt it will be huge. Utilities capital spending plans are usuall fairly stable and installing AIM devices is one way to achieve large savings in labor costs. Further, utilities are being required to install AIM devices for load conservation, peak demand control, etc., so I doubt that the economy will significantly impact Itron, IMHO.
it's effects...not affects...itri will feel the effect of some retrenchment...but i would not describe it as huge....itri is an outstanding company with must have products...it also has a global footprint...a few months from now, you will look back and wonder how in the world it got that cheap back in november 08....otherwise, dbaaa, i would suggest that you spend more time with the kids (they probably need it) and less time denigrating itri....ok?
There should be a hyphen between must and have since together they act as a compound modifiers for products. As for the rest of your message, jygalagg, it's typical Spokane jingoism. People around here are suckers for any locally based company, especially in tech. When ITRI contracts, I will be shocked, shocked...