Financial Data and Key Metrics Changes - The company reported revenue of $28.5 million for Q3 FY2025, which was down both sequentially and year-over-year due to no shipments to a large smart grid customer in Europe [4][10] - GAAP gross margin increased to 43.5% in Q3 FY2025 from 42.6% in the prior quarter and 40.1% in the year-ago quarter [10] - Non-GAAP gross margin was 44.1% in Q3 FY2025 compared to 43.2% in the prior quarter and 41% in the year-ago quarter [10] - GAAP net loss was $3.9 million or $0.10 per share during Q3 FY2025, compared to a GAAP net loss of $0.4 million or $0.01 per share in the year-ago quarter [11] - Non-GAAP net income was $1.1 million or $0.03 per share during Q3 FY2025, down from $4.2 million or $0.11 per share in the year-ago quarter [12] Business Line Data and Key Metrics Changes - Revenue impact was partially offset by sequential organic growth in embedded connectivity and switch products, along with growth in gateways and routers from the NetComm acquisition [10] - The company reduced non-GAAP operating expenses by approximately $1.2 million compared to the year-ago quarter and by about $200,000 sequentially [11] Market Data and Key Metrics Changes - The company is expanding its distribution network in the European Union and Asia Pacific, leveraging partnerships with TD SYNNEX and the acquired channel network from NetComm [7] - The integration of NetComm products has gone well, leading to increased customer engagement and cross-selling opportunities [7] Company Strategy and Development Direction - The company is focused on expanding its distribution network and managing costs amid tariff uncertainties [5][6] - There is a strong emphasis on developing edge AI solutions, particularly in the areas of drones, robotics, and surveillance [8][30] - The company is cautious about the macroeconomic environment but is generating positive cash flow and maintaining a strong balance sheet [15] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the operating environment and has established a task force to address tariff impacts [5][6] - The company expects revenue for Q4 FY2025 to be in the range of $26.5 million to $30.5 million, with some pressure on gross margins anticipated [14] - Management is optimistic about double-digit growth in FY2026 based on design activity and new product releases [36][45] Other Important Information - Cash and cash equivalents at the end of Q3 FY2025 totaled $20 million, slightly up from the prior quarter [12] - The company paid down approximately $2 million of its existing term debt, reducing interest expenses [13] Q&A Session Summary Question: What was the NetComm contribution in March and its growth potential? - Management expects NetComm revenue to be $6 million to $7 million on an annualized basis, tracking to exceed that run rate [18] Question: How is customer engagement tracking amid macro uncertainties? - There are no cancellations or push-outs, and design activity remains strong [21] Question: What is the outlook for edge compute initiatives? - The company is seeing positive engagement and expects revenue from AI activities, particularly around cameras, in FY2026 [30] Question: What visibility is there for June guidance and growth into FY2026? - Management is cautious but confident in the June guidance, expecting double-digit growth driven by core business and new design wins [36][45] Question: Is the company still the sole supplier to Gridspertise? - Yes, the company remains the single source for Gridspertise, and management is working closely with them [47]

Financial Data and Key Metrics Changes - The company reported revenue of $28.5 million for Q3 2025, which was down both sequentially and year-over-year due to no shipments to a large smart grid customer in Europe [9][10] - GAAP gross margin increased to 43.5% in Q3 2025 from 42.6% in the prior quarter and 40.1% in the year-ago quarter [10] - Non-GAAP gross margin was 44.1% in Q3 2025 compared to 43.2% in the prior quarter and 41% in the year-ago quarter [10] - GAAP net loss was $3.9 million or $0.10 per share, compared to a GAAP net loss of $0.4 million or $0.01 per share in the year-ago quarter [11] - Non-GAAP net income was $1.1 million or $0.03 per share, down from $4.2 million or $0.11 per share in the year-ago quarter [12] - Cash and cash equivalents totaled $20 million at the end of Q3 2025, slightly up from the prior quarter [12] Business Line Data and Key Metrics Changes - Revenue decline was partially offset by organic growth in embedded connectivity and switch products, as well as growth in gateways and routers from the NetComm acquisition [10] - The integration of NetComm products has been successful, leading to increased customer engagement and cross-selling opportunities [7] Market Data and Key Metrics Changes - The company is expanding its distribution network in the European Union and Asia Pacific, leveraging partnerships with TD SYNNEX and the acquired channel network from NetComm [7] - The company is focused on edge AI solutions, which are gaining traction among customers moving towards hybrid architectures [8] Company Strategy and Development Direction - The company is closely monitoring the operating environment and has established a task force to manage tariff impacts and supply chain disruptions [6] - There is a strong focus on developing edge intelligence solutions and expanding distribution channels [5][8] - The company aims to grow its channel distribution and has announced new AI-powered products, including a camera solution and a system using Qualcomm's processor [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment but noted positive cash flow and a strong balance sheet [15] - Customer design activity is reportedly growing, and the company is optimistic about future revenue from AI initiatives [15][30] - For Q4 2025, revenue is expected to be in the range of $26.5 million to $30.5 million, with some pressure on gross margins anticipated [13] Other Important Information - The company paid down $2 million of its existing term debt, reducing interest expenses [13] - The remaining debt balance is approximately $12.5 million, giving the company a net cash position of $7.5 million [13] Q&A Session Summary Question: What was the NetComm contribution in March and its growth potential? - Management expects NetComm revenue to be $6 million to $7 million on an annualized basis, tracking to exceed that run rate [18][19] Question: What is the current quoting activity and order patterns in Q4? - Management reported no cancellations or unusual customer behavior, with design activity remaining strong [21][22] Question: How is the edge compute side developing? - The company is seeing traction in edge AI initiatives, with expected revenue from AI activities in fiscal 2026 [30] Question: What visibility is there for June guidance and growth into fiscal 2026? - Management is cautious but optimistic about double-digit growth in fiscal 2026, driven by design activity and new product releases [36][46] Question: Is the company still the sole supplier to Gridspertise? - Yes, the company remains the single source for Gridspertise, continuing to engage with them on deployments [48]

Q3 FY2025 Financial Results "We're positioning Lantronix to lead the next wave of industrial and enterprise transformation at the edge," said Saleel Awsare, president and CEO of Lantronix. "This quarter reflects continued investment in high-growth areas—from AI-enabled gateways to 5G connectivity—while advancing our innovation roadmap, global partnerships, and talent base." Lantronix Reports Results for Third Quarter of Fiscal 2025 IRVINE, Calif., May 8, 2025 – Lantronix Inc. (NASDAQ: LTRX), a global leader ...

Core Insights - Lantronix Inc. reported third-quarter fiscal 2025 results, achieving revenue of $28.5 million, which is within the guidance range of $27.0 million to $31.0 million despite a challenging macroeconomic environment [1][10] - The company continues to focus on becoming a leader in intelligent edge computing, with significant investments in AI-enabled gateways and 5G connectivity [3][6] Financial Performance - Third-quarter net revenue was $28.5 million, a decrease from $31.2 million in the previous quarter and $41.2 million in Q3 FY2024 [9][10] - GAAP EPS for the quarter was ($0.10), compared to ($0.01) in Q3 FY2024 and ($0.06) in Q2 FY2025, while Non-GAAP EPS was $0.03, down from $0.11 in Q3 FY2024 [10][23] - The company reported a net loss of $3.9 million for the quarter, compared to a loss of $2.4 million in Q3 FY2024 [23][26] Product and Market Developments - Lantronix launched the Open-Q™ 8550CS System on Module (SoM), enhancing its AI-capable compute portfolio for industrial and robotics applications [2] - The company enabled Teledyne/FLIR's AI-driven drone thermal camera, showcasing the reliability of its Open-Q™ platform in critical edge vision systems [2] Business Outlook - For the fourth fiscal quarter ending June 30, 2025, Lantronix anticipates revenue in the range of $26.5 million to $30.5 million and Non-GAAP EPS between $0.00 to $0.02 [11][3] - The company is positioning itself to capitalize on the next wave of industrial and enterprise transformation at the edge [3][6] Geographic Revenue Breakdown - In Q3 FY2025, revenue from the Americas was $16.5 million, EMEA contributed $6.0 million, and Asia Pacific Japan accounted for $6.0 million [27][28] - Year-over-year comparisons show a decline in revenue across all regions, reflecting broader market challenges [27][28]

Company Overview - Lantronix Inc. is a global leader in compute and connectivity IoT solutions, focusing on high-growth markets such as Smart Cities, Enterprise, and Transportation [3] - The company provides customizable solutions that enable AI Edge Intelligence, including Intelligent Substations infrastructure, Infotainment systems, and Video Surveillance [3] Investor Engagement - Lantronix CEO Saleel Awsare and CFO Brent Stringham will participate in one-on-one meetings with investors at the 22nd Annual Craig-Hallum Institutional Investor Conference on May 28, 2025 [1] - Interested investors can contact CFO Brent Stringham for meeting availability [2]

Core Viewpoint - Lantronix Inc. is set to release its financial results for the fiscal 2025 third quarter on May 8, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will cover the period ended March 31, 2025 [1] - An investor conference call and audio webcast will be held on May 8, 2025, at 1:30 p.m. Pacific Time [2] - Investors can access a replay of the conference call starting at approximately 8:00 p.m. Pacific Time on the same day [3] Group 2: Company Overview - Lantronix Inc. is recognized as a global leader in compute and connectivity IoT solutions, focusing on high-growth markets such as Smart Cities, Enterprise, and Transportation [4] - The company's offerings include customizable solutions that enable AI Edge Intelligence, with advanced products like Intelligent Substations infrastructure, Infotainment systems, and Video Surveillance [4]

Core Viewpoint - Lantronix, Inc. (LTRX) has experienced a significant stock decline of 26.8% over the past month, influenced by broader market sell-offs due to trade tensions and potential economic slowdowns [1][2]. Group 1: Company Developments - Lantronix is enhancing its partnerships and showcasing advanced IoT solutions aimed at digital transformation across various industries, including its IIoT portfolio featuring high-performance routers and gateways [3]. - The company introduced the SmartLV, an AI-enabled IoT Edge Compute Cellular Gateway, which optimizes power distribution in low-voltage grids by integrating real-time data [4]. - LTRX is expanding its collaboration with Qualcomm to implement AI-powered analytics in edge systems, targeting sectors like banking and smart farming [5]. - In Q2, Lantronix acquired NetComm for $6.5 million, enhancing its Connect business with 4G and 5G gateways, and is seeing growth potential in Australia and New Zealand [6]. - The company launched the Open-Q 8550CS System-on-Module, designed to deliver low-power, high-performance AI capabilities for edge computing across various industries [8]. Group 2: Financial Performance - In Q2 of fiscal 2025, Lantronix's IoT System Solutions revenues, which contributed 59.7% to total revenues, fell by 19.2% year over year, while Embedded IoT Solutions revenues, contributing 34.6%, decreased by 8.3% [12]. - Overall, the company's top line decreased by 15.9% year over year, attributed to reduced orders from key automotive customers and a slight slowdown in the enterprise market [13]. - LTRX is currently trading at a forward 12-month Price/Sales ratio of 0.58, significantly lower than the industry average of 3.74 [9].

Core Insights - Lantronix Inc. has been recognized as the 8th Fastest-Growing Midsize Public Company in Orange County, California, with a revenue growth of 22% from 2022 to 2024, achieving revenues of $160.3 million for the 12 months ending December 30, 2024 [1][2] Company Achievements - The CEO of Lantronix, Saleel Awsare, expressed pride in the company's ranking, attributing it to the support of the team and technology partners, which has facilitated advancements in AI, Edge Computing, Industry 4.0, IIoT, and Out-of-Band Management [2] - Lantronix has received multiple awards, including the 2025 IoT Breakthrough Awards IoT CEO of the Year Award for Saleel Awsare, and has been listed in the 2025 CRN® Internet of Things (IoT) 50 list [3] Strategic Growth Initiatives - To support its growth strategy for 2025 and beyond, Lantronix has hired experienced industry leaders to enhance its global presence in compute and connectivity [2] - The company focuses on high-growth markets such as Smart Cities, Enterprise, and Transportation, providing customizable IoT solutions that enable AI Edge Intelligence [4]

Core Insights - Lantronix Inc. has been recognized as the 8th Fastest-Growing Midsize Public Company in Orange County, California, with a revenue growth of 22% from 2022 to 2024, achieving revenues of $160.3 million for the 12 months ending December 30, 2024 [1][2] Company Achievements - The CEO of Lantronix, Saleel Awsare, expressed pride in the company's ranking, attributing it to the support of the team and technology partners, which has enhanced their market presence in AI, Edge Computing, Industry 4.0, IIoT, and Out-of-Band Management [2] - Lantronix has received multiple awards, including the 2025 IoT Breakthrough Awards IoT CEO of the Year Award for Saleel Awsare, and has been listed on the 2025 CRN® Internet of Things (IoT) 50 list [3] Strategic Growth Initiatives - To support its growth strategy for 2025 and beyond, Lantronix has hired experienced industry leaders to enhance its global presence in compute and connectivity [2] - The company focuses on high-growth markets such as Smart Cities, Enterprise, and Transportation, providing customizable IoT solutions that enable AI Edge Intelligence [4]

IRVINE, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling Edge AI Intelligence, today announced it has been recognized on the 2025 Internet of Things (IoT) 50 list by CRN®, a brand of The Channel Company. CRN’s annual IoT 50 list spotlights vendors leading IoT innovation that are driving channel success. Honorees are selected by a panel of CRN editors with input from members of the channel partner community. “We a ...