I beleive the short's hold on the stock may not be as short term as you think. The shorts will take this down and than ride it up and than take it down again. The old yo-yo effect. The only thing that breaks this effect are contracts and a sucessful sales team.
tarzan: the point of my comment was that the shorts can push the price down but it will only stay down for short periods of time because it eventually hits a price that is well below its fundamental value, at which point investors purchase and put pressure on the short side. I've seen several stocks that have exhibited this behavior in weak market conditions. As you stated, this is a cycle and that is why ITRI is a trading stock right now as opposed to a long term investment (just my opinion.)
Another scenario that can occur as a result of short pressure is that the price gets depressed to a point that makes the company an attractive acquisition. This happened with Atheros about a year ago when short interest was high, the stock price was pressured lower, yet ATHR was beating guidance each quarter. Qualcomm was able to offer a significant premium and still paid about the same price ATHR traded at 6 months prior to the offer. Companies like Cisco, IBM, and Oracle are investing in smart grid and may see ITRI as an attractive acquisition to gain the top spot in the market...but this is just pure speculation on my part.