Sec Form 13G Filing - Riley Investment Management LLC filing for ITERIS INC. (ITI) - 2010-02-12

Insider filing report for Changes in Beneficial Ownership

  • Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
  • Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 13G


                    UNDER THE SECURITIES EXCHANGE ACT OF 1934
                               (Amendment No.4)*

                                  ITERIS, INC.
                                (Name of Issuer)

                                  COMMON STOCK
                         (Title of Class of Securities)

                                    46564T107
                                 (CUSIP Number)


                                DECEMBER 31, 2009
             (Date of Event which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

[_] Rule 13d-1(b)

[X] Rule 13d-1(c)

[_] Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page. The information required in the
remainder of this cover page shall not be deemed to be "filed" for the purpose
of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise
subject to the liabilities of that section of the Act but shall be subject to
all other provisions of the Act (however, see the Notes).







CUSIP No. 46564T107

- --------------------------------------------------------------------------------
1.   Name of Reporting Persons
     I.R.S. Identification Nos. of above persons (entities only)

     Riley Investment Management LLC
- --------------------------------------------------------------------------------
2.   Check the Appropriate Box If a Member of a Group (See Instructions)
                                                                         (a) [_]
                                                                         (b) [X]
- --------------------------------------------------------------------------------
3.   SEC Use Only

- --------------------------------------------------------------------------------
4.   Citizenship or Place of Organization

     Delaware
- --------------------------------------------------------------------------------
               5.   Sole Voting Power
  NUMBER OF         1,099,185(1)
   SHARES      -----------------------------------------------------------------
BENEFICIALLY   6.   Shared Voting Power
  OWNED BY          1,439,569(2)
    EACH       -----------------------------------------------------------------
  REPORTING    7.   Sole Dispositive Power
   PERSON           1,099,185(1)
    WITH:      -----------------------------------------------------------------
               8.   Shared Dispositive Power
                    1,439,569(2)
- --------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person
     1,099,185(1)
- --------------------------------------------------------------------------------
10.  Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
     (See Instructions)                                                      [X]
- --------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)
     3.2%(3)
- --------------------------------------------------------------------------------
12.  Type of Reporting Person (See Instructions)
     IA
- --------------------------------------------------------------------------------
________________

(1)      Because Riley Investment Management LLC has sole investment and voting
         power over 1,099,185 shares of common stock held in managed accounts by
         its investment advisory clients, Riley Investment Management LLC may be
         deemed to have beneficial ownership of these shares.

(2)      Riley Investment Management LLC has shared voting and dispositive power
         over 1,439,569 shares of common stock of its investment advisory
         clients. However, Riley Investment Management LLC disclaims beneficial
         ownership of the shares.

(3)      Based on 34,286,756 shares of common stock of Iteris, Inc. ("Issuer")
         outstanding at January 29, 2010, as reported in the Issuer's Quarterly
         Report on Form 10-Q for the quarter ended December 31, 2009, filed with
         the Securities and Exchange Commission on February 2, 2010. All
         percentage reporting in this Schedule is based upon the foregoing.


                                        2




CUSIP No. 46564T107

- --------------------------------------------------------------------------------
1.   Name of Reporting Persons
     I.R.S. Identification Nos. of above persons (entities only)

     B. Riley & Co. Retirement Trust
- --------------------------------------------------------------------------------
2.   Check the Appropriate Box If a Member of a Group (See Instructions)
                                                                         (a) [_]
                                                                         (b) [X]
- --------------------------------------------------------------------------------
3.   SEC Use Only

- --------------------------------------------------------------------------------
4.   Citizenship or Place of Organization

     United States
- --------------------------------------------------------------------------------
               5.   Sole Voting Power
  NUMBER OF         99,032
   SHARES      -----------------------------------------------------------------
BENEFICIALLY   6.   Shared Voting Power
  OWNED BY          0
    EACH       -----------------------------------------------------------------
  REPORTING    7.   Sole Dispositive Power
   PERSON           99,032
    WITH:      -----------------------------------------------------------------
               8.   Shared Dispositive Power
                    0
- --------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person
     99,032
- --------------------------------------------------------------------------------
10.  Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
     (See Instructions)                                                      [_]
- --------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)
     0.3%(4)
- --------------------------------------------------------------------------------
12.  Type of Reporting Person (See Instructions)
     EP
- --------------------------------------------------------------------------------

(4)  See note (3).


                                        3




CUSIP No. 46564T107

- --------------------------------------------------------------------------------
1.   Name of Reporting Persons
     I.R.S. Identification Nos. of above persons (entities only)

     Bryant Riley
- --------------------------------------------------------------------------------
2.   Check the Appropriate Box If a Member of a Group (See Instructions)
                                                                         (a) [_]
                                                                         (b) [X]
- --------------------------------------------------------------------------------
3.   SEC Use Only

- --------------------------------------------------------------------------------
4.   Citizenship or Place of Organization

     United States
- --------------------------------------------------------------------------------
               5.   Sole Voting Power
  NUMBER OF         1,348,117(5)
   SHARES      -----------------------------------------------------------------
BENEFICIALLY   6.   Shared Voting Power
  OWNED BY          1,439,569(6)
    EACH       -----------------------------------------------------------------
  REPORTING    7.   Sole Dispositive Power
   PERSON           1,348,117(5)
    WITH:      -----------------------------------------------------------------
               8.   Shared Dispositive Power
                    1,439,569(6)
- --------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person
     1,348,117 (5)
- --------------------------------------------------------------------------------
10.  Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
     (See Instructions)                                                      [X]
- --------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)
     3.9%(2),(3)
- --------------------------------------------------------------------------------
12.  Type of Reporting Person (See Instructions)
     IN
- --------------------------------------------------------------------------------
________________


(5)      Because Riley Investment Management LLC has sole voting and investment
         power over certain managed accounts of its investment advisory clients
         and Mr. Riley, in his role as the sole manager of Riley Investment
         Management LLC, controls its voting and investment decisions, Mr. Riley
         may be deemed to have beneficial ownership of the 1,099,185 shares held
         in such managed accounts by its investment advisory clients. Includes
         99,032 shares owned by B. Riley & Co. Retirement Trust. Because Mr.
         Riley, in his role as Trustee of the B. Riley & Co. Retirement Trust,
         controls its voting and investment decisions, Mr. Riley may be deemed
         to have beneficial ownership of these shares. Includes 149,990 shares
         of common stock owned by custodial accounts of Mr. Riley's children.
         Although Mr. Riley controls voting and investment decisions in his role
         as custodian for the children's accounts, Mr. Riley disclaims
         beneficial ownership of these securities.

(6)      Riley Investment Management LLC has shared voting and dispositive power
         over 1,439,569 shares of common stock of its investment advisory
         clients. Mr. Riley, in his role as the sole manager of Riley Investment
         Management LLC, controls its voting and investment decisions. However,
         Mr. Riley and Riley Investment Management LLC disclaims beneficial
         ownership of these shares.


                                        4





CUSIP No. 46564T107


ITEM 1.

     (a) Name of Issuer Iteris, Inc.

     (b) Address of Issuer's Principal Executive Offices
            1700 Carnegie Avenue,
            Suite 100
            Santa Ana, CA  92705

ITEM 2.

         1.
            Riley Investment Management LLC (Delaware limited liability company)
            Bryant Riley (individual residing in California)

2.
     B. Riley & Co. Retirement Trust (employee benefit plan)

(b) Address of Principal Business Office or, if none, Residence
      1.
         11100 Santa Monica Blvd.
         Suite 800
         Los Angeles, CA 90025

      2.
         11100 Santa Monica Blvd.
         Suite 800
         Los Angeles, CA 90025

(c) Citizenship
         United States

(d) Title of Class of Securities
         Common Stock

(e) CUSIP Number
         46564T107



                                       5



ITEM 3.

      IF THIS STATEMENT IS FILED PURSUANT TO SS.SS.240.13d-1(b) OR 240.13d-2(b)
      OR (c), CHECK WHETHER THE PERSON FILING IS A:

     (a)  [_]  Broker or dealer registered under Section 15 of the Act
               (15 U.S.C. 78o).
     (b)  [_]  Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c).
     (c)  [_]  Insurance company as defined in Section 3(a)(19) of the Act (15
               U.S.C. 78c).
     (d)  [_]  Investment company registered under Section 8 of the Investment
               Company Act of 1940 (15 U.S.C. 80a-8).
     (e)  [_]  An investment adviser in accordance with
               ss.240.13d-1(b)(1)(ii)(E);
     (f)  [_]  An employee benefit plan or endowment fund in accordance with
               ss.240.13d-1(b)(1)(ii)(F);
     (g)  [_]  A parent holding company or control person in accordance with
               ss.240.13d-1(b)(1)(ii)(G);
     (h)  [_]  A savings associations as defined in Section 3(b) of the Federal
               Deposit Insurance Act (12 U.S.C. 1813);
     (i)  [_]  A church plan that is excluded from the definition of an
               investment company under section 3(c)(14) of the Investment
               Company Act of 1940 (15 U.S.C. 80a-3);
     (j)  [_]  Group, in accordance with ss.240.13d-1(b)(1)(ii)(J).


ITEM 4.
      OWNERSHIP.

      Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.

For each Reporting Person:

(a) Amount beneficially owned: Please see Line 9 on the cover sheet for each
reporting person (including footnotes thereto).

(b) Percent of class: Please see Line 11 on the cover sheet for each reporting
person (including footnotes thereto).

(c) Number of shares as to which the person has:

(i) Sole power to vote or to direct the vote: Please see Line 5 on the cover
sheet for each reporting person (including footnotes thereto).

(ii) Shared power to vote or to direct the vote: Please see Line 6 on the cover
sheet for each reporting person (including footnotes thereto).

(iii) Sole power to dispose or to direct the disposition of: Please see Line 7
on the cover sheet for each reporting person (including footnotes thereto).

(iv) Shared power to dispose or to direct the disposition of: Please see Line 8
on the cover sheet for each reporting person (including footnotes thereto).



                                       6



ITEM 5.
      OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.

      If this statement is being filed to report the fact that as of the date
      hereof the reporting person has ceased to be the beneficial owner of more
      than five percent of the class of securities, check the following [X].

INSTRUCTION: Dissolution of a group requires a response to this item.

ITEM 6.
      OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.

           Not applicable

ITEM 7.

      IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
      SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.

           Not applicable

ITEM 8.

      IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

           Not applicable

ITEM 9.

      NOTICE OF DISSOLUTION OF GROUP.

           Not applicable

ITEM 10.

      CERTIFICATION


(b)

      The following certification shall be included if the statement is filed
      pursuant to ss.240.13d-1(c):

      By signing below I certify that, to the best of my knowledge and belief,
      the securities referred to above were not acquired and are not held for
      the purpose of or with the effect of changing or influencing the control
      of the issuer of the securities and were not acquired and are not held in
      connection with or as a participant in any transaction having that purpose
      or effect.



                                        7






CUSIP No. 46564T107


                                    SIGNATURE

      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Date: February 12, 2010

                                     Riley Investment Management, LLC

                                     By: /s/ BRYANT R. RILEY
                                         ---------------------------------------
                                         Bryant R. Riley, Managing Member

                                     B. Riley & Co. Retirement Trust

                                     By: /s/ BRYANT R. RILEY
                                         ---------------------------------------
                                         Bryant R. Riley, Tr
ustee


                                     By: /s/ BRYANT R. RILEY
                                         ---------------------------------------
                                         Bryant R. Riley





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