IRVINE, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in compute and connectivity IoT solutions powering Edge AI applications, today announced that its CEO Saleel Awsare will participate in three upcoming investor conferences: 16th Annual Craig-Hallum Alpha Select Conference — Tuesday, Nov. 18, New York City One-on-one meetings with CEO Saleel Awsare and Brent Stringham, CFOTo register for the conference, click here. 14th Annual ROTH Technology Conference — Wednes ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Delaware 33-0362767 48 Discovery, Suite 250, Irvine, California (Address of pr ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Lantronix, Inc. (LTRX) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise.Over the last four quarters, the company has surp ...

Financial Data and Key Metrics Changes - The company reported revenue of $29.8 million for Q1 2026, reflecting a 3% increase sequentially and year-over-year, excluding GRIT's fatigue [4][11] - Non-GAAP EPS improved to $0.04 from $0.01 in Q4 2025, driven by gross margin expansion and operating leverage from cost optimization initiatives [4][13] - GAAP gross margin increased to 44.8% from 40% in the previous quarter and 42.1% a year ago, while non-GAAP gross margin rose to 45.3% from 40.6% in Q4 2025 [11][12] Business Line Data and Key Metrics Changes - The OEM engagements grew from 10 to 17, indicating accelerating customer adoption in the drone business [6] - The company introduced edge AI drone solutions and partnered with Red Cat, leading to follow-on orders and enhanced customer confidence [5][6] - The asset monitoring segment launched compress.ai, targeting the $27 billion global industrial air compressor market, which is expected to create high-margin recurring revenue [9] Market Data and Key Metrics Changes - The overall market environment remains favorable, with record defense funding and strong demand for networking and connectivity solutions [4][5] - The company is experiencing strong demand in the drone sector, with expectations for continued growth throughout fiscal 2026 [8][19] Company Strategy and Development Direction - The company aims to scale high-growth verticals, expand software-enabled recurring revenue, and drive operating leverage from a leaner cost structure [9][15] - The introduction of edgefabric.ai is designed to simplify AI application deployment, enhancing customer engagement and creating a foundation for recurring revenue [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory ahead, expecting nearly 20% year-over-year growth in Q2 2026, excluding GRIT's fatigue [15][41] - The company anticipates continued strong performance in its core network infrastructure business, supported by healthy demand [15][41] Other Important Information - The company ended Q1 with cash and cash equivalents of $22.2 million, an increase of over $2 million from the prior quarter [13] - Positive operating cash flow of approximately $3.6 million was generated during the first quarter [13] Q&A Session Summary Question: Drone opportunities and competitive landscape - Management noted that they are working with 17 OEMs, with some already in design and shipping phases, indicating accelerating momentum in the drone business [18][19] Question: Update on generator win with a major service provider - The generator win is progressing well, expanding beyond diesel generators to other equipment for asset tracking [20][21] Question: Sales and fulfillment model for compress.ai - Compress.ai is an AI-powered SaaS solution aimed at generating long-term high-margin recurring revenue, with Vodafone providing connectivity [22] Question: Growth in out-of-band management - Management confirmed growth in out-of-band management and plans to introduce a new product targeting new markets [26][29] Question: Recurring revenue opportunities - Management expects software and services revenue to grow from 5-7% to 10% in the future, with significant opportunities in adjacent markets like robotics and security [31] Question: Timeline for drone revenue contribution - Management anticipates that drone revenue could reach 10-15% of total revenue by fiscal year 2027 [33] Question: Revenue recognition from tier one telecom service provider - Revenue from the $8 million-$10 million win was recognized in the September quarter, with expectations for continued revenue recognition in the December quarter [34] Question: Gross margin outlook - Management expects gross margins to remain in the low 40s, consistent with previous quarters [39][40]

Financial Performance - First Quarter 2026 net revenue reached $29.8 million, aligning with the high end of guidance[5] - First Quarter 2026 Non-GAAP EPS was $0.04, while GAAP EPS reported a loss of ($0.04)[5] - Q2 FY2026 revenue guidance is set between $28 million and $32 million, with a midpoint of $30 million[11] - Non-GAAP EPS guidance for Q2 FY2026 is projected between $0.02 and $0.04, with a midpoint of $0.03[11] - Net revenue for the three months ended September 30, 2025, was $29,794,000, a decrease of 13.5% compared to $34,423,000 for the same period in 2024[22] - Gross profit for the same period was $13,346,000, resulting in a gross margin of 44.8%[22] - The company reported a net loss of $1,401,000, which is an improvement from a net loss of $2,502,000 in the same quarter last year[22] - Non-GAAP net income for the three months ended September 30, 2025, was $1,478,000, compared to $2,337,000 for the same period in 2024[24] - Non-GAAP gross profit was $13,507,000, with a non-GAAP gross margin of 45.3%[24] Asset and Liability Management - Total current assets decreased from $77.4 million in June 2025 to $74.4 million in September 2025[21] - Total liabilities decreased from $49.3 million in June 2025 to $45.1 million in September 2025[21] - Stockholders' equity increased slightly from $74.4 million in June 2025 to $74.5 million in September 2025[21] Market Engagement and Product Development - Increased Drone OEM engagements from 10 in Q4 to 17 in Q1, indicating strong demand in the UAS market[6] - Launched EdgeFabric.ai™ platform to enhance Edge AI deployment, facilitating integration and management of visual AI workloads[6] - Introduced Kompress.ai, an AI-powered optimization platform aimed at improving performance and energy efficiency in industrial environments[11] Revenue Breakdown - Embedded IoT Solutions generated $11,467,000 in revenue, while IoT System Solutions contributed $16,459,000 for the quarter[26] - Revenue from the Americas region was $20,651,000, representing an increase from $17,420,000 in the same quarter last year[26] Operating Expenses - Total operating expenses for the quarter were $14,873,000, slightly higher than $14,671,000 in the previous quarter[22] - Research and development expenses were $4,598,000, compared to $4,956,000 in the same quarter last year[22] - The company incurred restructuring, severance, and related charges of $93,000 during the quarter[22]

First Quarter 2026 Net Revenue of $29.8 MillionFirst Quarter 2026 GAAP EPS of ($0.04) First Quarter 2026 Non-GAAP EPS of $0.04 Grew Drone OEM Engagements to 17 in Q1, Underscoring Demand in the UAS Market IRVINE, Calif., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in compute and connectivity IoT solutions powering Edge AI applications, today reported results for the fiscal first quarter ended Sept. 30, 2025. Management Commentary “Fiscal 2026 is off to a strong start, wi ...

Global Leader in Edge AI & Industrial IoT November 2025 LTRX:NASDAQ Forward-Looking Statements This Presentation contains forward-looking statements, including statements concerning our business and product development plans and strategies, the perceived benefits of our products and corporate acquisitions, and our future growth and financial performance. Any statement relating to our plans, goals, expectations or any future event should be considered a forward-looking statement. While we have based our forw ...

Core Insights - Lantronix Inc. has partnered with Sightline Intelligence to integrate its compliant solutions into advanced video processors for defense and commercial drone platforms, enhancing its market presence in the rapidly growing drone sector [1][3] - The global drone and defense technology market is projected to reach $57.8 billion by 2030, indicating significant growth opportunities for Lantronix [1] Company Developments - The collaboration with Sightline validates Lantronix's differentiated edge AI technology and expands its footprint in the high-growth defense and UAV sectors, which have high entry barriers [3] - Lantronix's CEO highlighted that this strategic partnership demonstrates the company's accelerating growth momentum in the edge AI drone market and affirms its technological leadership [2] Technology Advantages - The new Sightline platforms, 4100-OEM and 4100-SOM, utilize Lantronix's Open-Q 7230CS and 5165RB system-on-modules (SOM), powered by Qualcomm® Dragonwing™ processors, designed for next-gen drone and ISR systems [2] - Key features include full HD performance, H.265 encoding, dual-channel processing, and compliance with 4K/30, MISB/KLV standards, providing flexibility for ISR and defense-grade system deployments [2] Market Positioning - Lantronix aims to leverage its hardware and integrated computing solutions to capitalize on the rapid adoption of drones in commercial and military applications [3] - The company's solutions are designed to enable real-time decision-making at the sensor level, reducing latency and enhancing reliability, which is critical for defense applications [5]

Group 1: Core Insights - Lantronix Inc. has entered a strategic partnership with Vodafone IoT to develop a platform aimed at optimizing business performance and creating recurring revenue opportunities [1] - The partnership will launch Kompress.ai, an AI-powered subscription platform targeting the $27 billion global industrial air compressor market, focusing on cost reduction and minimizing downtime [2][3] - Kompress.ai integrates Lantronix's Edge hardware and cloud intelligence with Vodafone's global IoT connectivity, providing real-time insights and automation for compressor fleets [3] Group 2: Market Positioning - The Kompress.ai platform is designed as a scalable SaaS solution that aims to generate long-term, high-margin recurring revenue while addressing market needs in industrial efficiency and sustainability [4] - Lantronix positions itself as a global provider of Edge AI and Industrial IoT solutions, offering a variety of hardware, software, and engineering services to facilitate secure and connected devices across multiple industries [4]