Core Insights - Lantronix and Aerora are collaborating to enhance AI-powered drone solutions, focusing on Edge AI technologies for applications in drones, robotics, and surveillance [1][2] - The global drone market is projected to reach $163.6 billion by 2030, with a compound annual growth rate (CAGR) of 15% [2] - Aerora's solutions leverage Lantronix's Open-Q™ System-on-Module (SoM) powered by Qualcomm® Technologies, providing advanced processing capabilities for AI applications [3] Company Overview - Lantronix is a leader in compute and connectivity IoT solutions, targeting high-growth industries such as Smart Cities, Automotive, and Enterprise [8] - Aerora specializes in integrated NDAA-compliant propulsion, ground control, and precision AI payload systems, managing the entire supply chain for drone manufacturers [11] Technological Advancements - Aerora's integrated solution includes advanced thermal and RGB imaging capabilities through the Teledyne FLIR Hadron 640R module and Prism software [4] - The full-stack solution from Aerora features pre-integration of essential components, enabling simultaneous 4K video streaming and high-resolution thermal video [5] Market Opportunities - The collaboration is expected to open new opportunities in both private and government sectors, enhancing operational capabilities and reducing development timelines for drone OEMs [2][6]

Core Viewpoint - Lantronix is showcasing its innovative LM4 AI-driven Out-of-Band Management (OOBM) platform at Cisco Live, emphasizing its capabilities in enhancing network security, reliability, and automation [1][5]. Company Overview - Lantronix Inc. is a global leader in compute and connectivity IoT solutions, targeting high-growth markets such as Smart Cities, Enterprise, and Transportation [12]. - The company offers a comprehensive portfolio of out-of-band management console servers aimed at minimizing unscheduled network downtime [2]. Product Features - The LM4 is the first console server specifically designed for Intermediate Distribution Frames (IDFs) and compact environments, suitable for sectors like healthcare, finance, and telecommunications [3]. - The LM4 provides advanced automation, compliance, and cybersecurity features, leveraging technology validated in military and financial networks [3]. - It supports up to four ports of serial console connections and up to 48 virtual ports, making it versatile for various deployment scenarios [7]. Market Insights - The global market for serial console servers is nearly $400 million, with significant growth expected in AI data centers and GPU-as-a-Service deployments [4]. - Dell'Oro Group forecasts that data center capital expenditures will exceed $1 trillion by 2029, indicating a robust growth trajectory for related technologies [4]. Event Participation - At Cisco Live, Lantronix will conduct live demonstrations and daily giveaways of the LM4 platform, highlighting its commitment to empowering customers through data-driven decision-making [1][5]. - A speaking session titled "OOB Everywhere! How Advanced Console Servers Enhance Network Automation, Cybersecurity & Resilience" will be led by Eric Weiss, Product Line Director, on June 10, 2025 [9]. Software and Management - The LM4 operates on LMOS software, which enables continuous monitoring and automated issue resolution, enhancing the management of network infrastructure [8]. - The LM-Series, including the LM4, is centrally managed by the Lantronix Control Center, allowing for standardized out-of-band management across various devices [10].

Core Insights - Lantronix Inc. has been awarded the 2025 TMC Labs Innovation Award for its SmartLV IoT cellular gateway, which is recognized as the first AI-enabled IoT Edge Compute Cellular Gateway powered by the Qualcomm IQ-615 processor [1][2][3] Company Overview - Lantronix is a global leader in compute and connectivity IoT solutions, focusing on high-growth markets such as Smart Cities, Enterprise, and Transportation [6] - The company emphasizes innovation and has a long-term partnership with Qualcomm to deliver advanced IoT solutions [3][6] Product Features - The SmartLV is designed for low-voltage substations and distribution automation applications, aimed at enhancing real-time visibility, control, and automation in the energy sector [4] - It incorporates advanced cybersecurity protocols and AI capabilities, ensuring secure operations for mission-critical applications [5] - The gateway provides Distribution System Operators (DSOs) with the ability to control energy distribution precisely when and where needed [4][5][6]

Core Viewpoint - Lantronix Inc. has appointed Dr. Sailesh Chittipeddi as an independent director to its Board of Directors, effective May 6, 2025, enhancing the board's expertise in technology and supply chain management [1][2]. 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 [8]. - The company provides customizable solutions that enable AI Edge Intelligence, including Intelligent Substations infrastructure, Infotainment systems, and Video Surveillance [8]. Board Appointment Details - Dr. Chittipeddi's appointment increases the board to five directors, with four being independent under Nasdaq listing standards [1]. - He brings extensive experience in Industrial, IoT, and Infrastructure businesses, having previously served as executive vice president of Global Operations at Renesas Electronics [2][5]. - His leadership at Renesas resulted in nearly doubling the revenue of its Industrial, IoT, and Infrastructure Business Unit to over $7 billion [5]. Dr. Chittipeddi's Background - Dr. Chittipeddi has held senior positions at various leading technology companies, including Conexant Systems, AT&T Bell Labs, and Lucent Technologies [6]. - He is currently a Venture Partner at Novo Tellus Capital Partners and serves on the boards of several global companies [2][6]. - He holds an MBA from the University of Texas at Austin and a Ph.D. in Physics from The Ohio State University, along with 83 U.S. semiconductor process, package, and design patents [7].

Lantronix, Inc. LTRX reported in-line earnings for the third quarter, after the closing bell on Thursday.The company posted quarterly earnings of 3 cents per share which met the analyst consensus estimate. The company reported quarterly sales of $28.50 million which missed the analyst consensus estimate of $29.12 million.“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 conti ...

Financial Performance - In the three months ended March 31, 2025, net revenue decreased by $12,683,000 or 30.8% compared to the same period in 2024, driven by a 45.0% decrease in the IoT System Solutions product line [107]. - The company reported a net loss of $3,868,000 for the three months ended March 31, 2025, compared to a net loss of $423,000 for the same period in 2024 [107]. - Net revenue for the nine months ended March 31, 2025, decreased by $17,168,000 or 15.4% compared to the same period in 2024, primarily due to a 24.4% decrease in the IoT System Solutions product line and a 14.3% decrease in Software and Services [118]. - The company reported a net loss of $8,742,000 for the nine months ended March 31, 2025, compared to a net loss of $4,902,000 for the same period in 2024 [118]. Gross Profit and Margins - Gross profit for the three months ended March 31, 2025, was $12,403,000, representing a gross margin of 43.5%, compared to 40.1% in the same period in 2024 [112]. - Gross profit for the nine months ended March 31, 2025, was $40,162,000, a decrease of $5,470,000 or 12.0% from $45,632,000 in 2024, with a gross margin of 42.7% [124]. - The company anticipates fluctuations in gross margin based on changes in product mix, average selling prices, and manufacturing costs [113]. Expenses - Selling, general and administrative expenses decreased by $794,000 or 8.1% to $9,753,000 for the three months ended March 31, 2025, primarily due to lower headcount-related costs [115]. - Research and development expenses decreased by $723,000 or 13.9% to $5,186,000 for the three months ended March 31, 2025, mainly due to lower personnel-related expenses [117]. - Selling, general and administrative expenses decreased by $1,910,000 or 6.6% to $27,237,000 for the nine months ended March 31, 2025, primarily due to lower spending on sales conferences and reduced share-based compensation [126]. - Research and development expenses decreased by $614,000 or 4.1% to $14,403,000 for the nine months ended March 31, 2025, mainly due to lower personnel-related expenses and reduced share-based compensation [127]. Revenue by Region and Product Line - The Americas region accounted for 57.9% of net revenue in the three months ended March 31, 2025, while EMEA accounted for 21.2%, and APJ accounted for 20.9% [108]. - The IoT System Solutions product line saw a significant revenue drop, with no revenue from a major European smart energy grid customer, which previously contributed nearly $12,000,000 in the prior year [110]. - Embedded IoT Solutions revenue decreased by 3.7% to $11,990,000, while Software and Services revenue decreased by 8.3% to $1,780,000 [108]. Cash Flow and Working Capital - Working capital as of March 31, 2025, was $47,897,000, a decrease of $10,897,000 from $58,794,000 as of June 30, 2024 [134]. - Cash and cash equivalents decreased by $6,238,000 to $19,999,000 as of March 31, 2025, compared to $26,237,000 as of June 30, 2024 [134]. - Net cash provided by operating activities for the nine months ended March 31, 2025, was $6,233,000, a decrease of $10,115,000 from $16,348,000 in 2024 [141]. - Cash provided by operating activities decreased compared to the prior year period, with a net loss of $9,705,000 in non-cash charges and net cash from operating assets and liabilities of $5,270,000 for the nine months ended March 31, 2025 [142]. Restructuring and Acquisition - The company incurred restructuring charges of $2,674,000 for the nine months ended March 31, 2025, primarily related to headcount reductions [128]. - Acquisition-related costs of approximately $337,000 were incurred during the nine months ended March 31, 2025, primarily in connection with the acquisition of Netcomm [130]. - The acquisition of Netcomm Wireless Pty Ltd for $6,458,000 in cash is expected to enhance connectivity solutions in critical infrastructure and telecommunications [103]. Inventory and Receivables - Accounts receivable decreased by $7,631,000, or 24.4%, from June 30, 2024, primarily due to lower net revenue levels and timing of payments from customers [143]. - Inventories increased by $453,000, or 1.6%, from June 30, 2024, mainly due to $797,000 of net inventories acquired in the Netcomm acquisition [143]. - Accounts payable increased by $658,000, or 6.4%, from June 30, 2024, primarily due to timing of inventory receipts and vendor payments [144]. - Accrued payroll and related expenses decreased by $1,931,000, or 33.1%, from June 30, 2024, due to accrued variable compensation paid out during the current year [144]. Investing and Financing Activities - Net cash used in investing activities included the acquisition of Netcomm for $6,458,000 and property and equipment totaling $362,000 for tooling and R&D projects for the nine months ended March 31, 2025 [145]. - Cash used in financing activities was primarily for principal payments on Senior Credit Facilities and tax withholdings for restricted shares during the nine months ended March 31, 2025 [146].

Financial Performance - Lantronix, Inc. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, but down from $0.11 per share a year ago [1] - The company posted revenues of $28.5 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.40%, and down from $41.18 million year-over-year [2] - Over the last four quarters, Lantronix has only surpassed consensus EPS estimates once and has not beaten consensus revenue estimates [2][3] Stock Performance - Lantronix shares have declined approximately 48.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current Zacks Rank for Lantronix is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $30.8 million, and for the current fiscal year, it is $0.18 on revenues of $125.6 million [7] - The trend of estimate revisions for Lantronix is mixed, which could change following the recent earnings report [6] Industry Context - The Computer - Networking industry, to which Lantronix belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests that the performance of stocks can be significantly influenced by the outlook for the industry [8]

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 ...