ITRI
#Thanks, <UNK>.
So yes, <UNK>, we're not in a position to give full guidance on 2016.
But we have commented on the fact that we do see stronger than average growth in 2016, really as a result of the already-booked contracts, and the other contractual commitments not yet in our formal backlog.
So this was the discussion about, not only did we see a significant buildup of our total Company backlog, but that we have visibility to shipments in North America, and places like Consumers and Duke not yet fully in backlog, to other European shipments with companies like ERDF and GRDF, in which there is visibility beyond the backlog, which we see deploying and committed in 2016.
So we would definitely characterize 2016 as an above-normal growth year.
And we will also start to see some real benefit from the restructuring in 2016.
Okay, I will let <UNK> comment on the tax rate, and then I will come back with that mix question.
On the tax rate ---+ and I believe what I just said in the discussion part of the call was that we expect to see some modest upward pressure from the 37% that we had forecast, or that we had guided to earlier, as a full-year effective tax rate.
What that means is that we will see a lower rate in the second half of the year than we have experienced thus far.
And without being too precise on it, let me say the second half of the year, the way we look at it, should be somewhere below 30%.
Why is that.
It's because of the dynamics of improving profitability, particularly in Germany and France, where we have deferred tax assets that are fully impaired.
So if you understand that where we have losses in Germany and France today, we get no credit for that, because the deferred tax assets are covered by valuation allowances.
To the extent we get income there, we get an actual benefit of having no tax levied on those profits.
So that's what's happening, as we see it, in the second half.
A better operating result in Germany and France that is heightened by a favorable tax effect, pushing our tax rate down in quarters two ---+ quarters three and four, below 30%.
And Phil, did you want to ---+.
Sure.
On that mix, <UNK>, we're not in a position to provide full detail.
I will give you just a little bit of color on that, which is, the first thing that is taking us towards that mid-teens EBITDA target is this goal that I've stated of high-single-digit EBITDA in electricity by the end of 2016.
That's $40 million of low-margin exits in 2014, $50 million of exits.
So electricity grew significantly year on year.
That's even with the removal of a fair amount of low-margin revenue that we are taking out of the mix.
So we have an overall mix improvement, by strategically exiting some markets where we were not making our targets.
At the same time that we are taking out $40 million worth of cost, and as we see an increase in the focus in shift to the North American products that are already in backlog that have higher margin.
At the same time, we are consolidating some facilities, which help with our overall efficiency, which really helps us to improve our performance in a number of different areas.
And we are investing in sophisticated products to drive to this higher-margin area.
So yes, it is a range, a balanced range of revenue growth, again, visibility in backlog, and attractive areas, as we exit lower margin areas, reduce cost and continue to invest in higher-margin products in the future.
Yes, <UNK>, it's very fair.
Our intent here, as we get this business really established in the way that we see it internally, that we would provide more visibility about the separate financial metrics of the software and services business.
It's both something that we intend to manage aggressively, and that we need to present to you more transparently, in terms of how it affects our overall business.
To the question of the ---+ do we see growth against that $200 million baseline, yes, it is growing.
As we are focusing more on providing this solution up to and including managed services, and even data services beyond that.
So we see the growth opportunity as being faster than overall total Company revenue growth.
In terms of an update for that total targeted plan, it's ---+ in the 2017, 2018 time frame, we really see the opportunity to realize that growth target.
I would say that's a bit more long-dated, to get that straightened out.
So those are, yes, slightly higher costs, to go after some very desirable business, by the way.
We've talked about this, that Jordan Water, and a number of these opportunities we are going after, are solid-state water meters ---+ I mean communicating meters, where we have made investments in advanced technology, that are really going to drive the business forward.
And revenues are ---+ as we have said, are down slightly.
So as we return to revenue growth in 2016, that operating leverage, we think, will straighten itself out.
I think we have provided all of the answers to the questions, everyone in the queue.
So we thank you for your participation today, and we look forward to seeing you, and speaking with you, in the upcoming weeks.
Thanks very much.
