Case Study: Lantronix’s Open-Q SOM, powered by Qualcomm SoC, utilized to integrate advanced acoustic technology into an innovative public safety solutionIRVINE, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in IoT compute and connectivity IoT solutions, today announced its new case study featuring GWACS Defense Inc., a Tulsa, Okla.-based military defense contractor. Delivering intelligence at the Edge, GWACS utilized Lantronix’s Open-Q™ 8250CS System on Module (SOM ...

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Core Insights - Lantronix, Inc. has completed the acquisition of NetComm Wireless Pty Ltd for $6.5 million, which includes all enterprise IoT business assets and certain liabilities [2] - The acquisition aligns with Lantronix's strategic focus on the Enterprise and Smart City sectors, enhancing its 5G capabilities and expanding its IoT offerings [7] - Lantronix expects the NetComm portfolio to contribute $6-$7 million in revenues during 2024, solidifying its position in the IoT market [8] Company Developments - Lantronix has launched SmartLV, an AI-powered IoT Edge Compute Cellular Gateway, aimed at low-voltage substations and distribution automation [3] - The company has also introduced five new System-in-Package (SiP) solutions, designed to enhance industrial and enterprise IoT applications [4] - Management emphasized that the acquisition will accelerate Lantronix's leadership in enterprise and industrial IoT solutions, providing customers with an expanded portfolio of gateways, routers, and modems [12] Market Performance - Lantronix currently holds a Zacks Rank of 5 (Strong Sell), with shares declining by 29.6% over the past year, contrasting with the industry's growth of 18% [5] - In comparison, other technology stocks like Intrusion Inc., Extreme Networks, and RADCOM Ltd. have better rankings and performance metrics [6]

Accelerates Lantronix’s Enterprise IoT LeadershipExpands Its IoT Wireless Connect Portfolio With Cutting-Edge 5G TechnologyStrengthens Its Competitive Offering, Adds New Blue-Chip Customers IRVINE, Calif., Dec. 26, 2024 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in IoT compute and connectivity IoT solutions, today announced that it has finalized its acquisition of NetComm Wireless Pty Ltd (“NetComm”), a subsidiary of DZS Inc., for all of its enterprise Internet of Things (IoT) busine ...

Accelerates Lantronix's Enterprise IoT LeadershipExpands Its IoT Wireless Connect Portfolio With Cutting-Edge 5G TechnologyStrengthens Its Competitive Offering, Adds New Blue-Chip Customers IRVINE, Calif., Dec. 26, 2024 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ:LTRX), a global leader in IoT compute and connectivity IoT solutions, today announced that it has finalized its acquisition of NetComm Wireless Pty Ltd ("NetComm"), a subsidiary of DZS Inc., for all of its enterprise Internet of Things (IoT) busines ...

IRVINE, Calif., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ:LTRX), a global leader in IoT compute and connectivity IoT solutions, today announced that Saleel Awsare, CEO and Brent Stringham, Interim CFO, will deliver in-person presentations on Tuesday, Jan. 14, and Wednesday, Jan. 15, 2025, at the 27th Annual Needham Growth Conference at the Lotte New York Palace Hotel in New York City. The live audio webcast and replay of the presentations will be available approximately two hours following th ...

Financial Data and Key Metrics Changes - The company reported revenue of $34.4 million for Q1 2025, up 4% year-over-year, but at the lower end of guidance due to a sequential decline from record revenues in the previous quarter [5][22] - Non-GAAP EPS for Q1 2025 was $0.06, compared to $0.07 in the same quarter last year [5][28] - GAAP gross margin was 42.1%, an improvement from 38.1% in the prior quarter but slightly down from 42.7% year-over-year [25] - GAAP net loss was $2.5 million or $0.07 per share, compared to a loss of $1.9 million or $0.05 per share in the year-ago quarter [27] Business Line Data and Key Metrics Changes - Embedded IoT Solutions revenue increased by 18% sequentially and year-over-year, driven by growth from a large enterprise video conferencing customer [23] - IoT System Solutions revenue decreased by 47% sequentially and 1% year-over-year, primarily due to a reduction in shipments to a large smart grid customer and a federal government agency order that did not materialize as expected [24] - Software and services revenue was up 8% sequentially but down 13% year-over-year as products moved into production [24] Market Data and Key Metrics Changes - The acquisition of NetComm's IoT product line is expected to generate approximately $6 million to $7 million in revenue in calendar year 2024, with a projected growth of 20% into calendar year 2025 [8][42] - The company is focusing on expanding its presence in underserved geographic markets such as Australia and New Zealand through the NetComm acquisition [8] Company Strategy and Development Direction - The company is strategically focused on investing in areas where it can differentiate and demonstrate IoT leadership while emphasizing operational efficiency and cost savings [6] - Initiatives are underway to streamline the product portfolio and consolidate operations from 7 sites to 4 centers of excellence, aiming to reduce operating expenses by approximately $4.5 million in fiscal year 2025 [16][18] - The company is positioning itself to lead in the Edge AI ecosystem through collaborations with Qualcomm, focusing on scalable AI solutions and expanding offerings in the Smart City vertical [10][15] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in consumer spending and enterprise vertical markets, particularly affecting the largest automotive customer in Turkey [32] - The company expects improvements sequentially as the fiscal year progresses, with a revenue outlook for Q2 2025 in the range of $29 million to $33 million [30] - Management remains optimistic about long-term growth opportunities in the smart grid and Edge AI sectors, with ongoing deployments and product readiness [34][46] Other Important Information - The acquisition of NetComm is expected to be immediately accretive to EPS and is anticipated to close in November 2024 [9][19] - The company is not planning future investments in non-core products such as WiFi and GNSS modules, focusing instead on core growth areas [16] Q&A Session Summary Question: What type of growth or recovery can be expected in the second half of the fiscal year? - Management indicated a slowdown in the automotive sector but expects sequential improvements as the fiscal year progresses [32] Question: Any updates on smart grid opportunities? - Management confirmed ongoing deployments in Europe and new opportunities in North America and Latin America [34] Question: Are there any monetary connections to the development agreements with Qualcomm? - Management did not disclose specific dollar amounts but confirmed collaborative efforts to enhance Qualcomm's AI hub [36] Question: What are the synergies expected from the NetComm acquisition? - The acquisition adds 5G IoT gateways and routers, enhancing the product portfolio and providing cross-selling opportunities with existing enterprise customers [40] Question: Will existing channels be used for the NetComm products? - Management confirmed that NetComm brings its own channel relationships, which will be integrated with existing channels [43] Question: What applications are being targeted in the Edge AI development? - Management highlighted enterprise video conferencing, smart grid applications, and industrial automation as key areas of focus [46]

Lantronix, Inc. (NASDAQ:LTRX) Q1 2025 Earnings Conference Call November 7, 2024 6:30 PM ET Company Participants Brent Stringham - Chief Accounting Officer and Interim CFO Saleel Awsare - President and CEO Conference Call Participants Tyler Burmeister - Craig-Hallum Capital Ryan Koontz - Needham Operator Good evening, and welcome to the Lantronix First Quarter Fiscal 2025 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. ...

Core Insights - Lantronix Inc. has announced a strategic partnership with DZS, Inc. and NetComm Wireless Pty Ltd to enhance its 5G product offerings, aiming to fill gaps in its product line and meet increasing customer demand for 5G solutions [1][2] Group 1: Partnership and Product Development - The collaboration with DZS and NetComm is expected to strengthen Lantronix's capabilities in providing 5G solutions, which are crucial for the company's growth strategy [1] - Lantronix anticipates that the partnership will enable it to deliver enhanced customer solutions and expand its market reach in the 5G sector [1][2] - The company projects that the partnership will contribute to significant revenue growth, with expectations of generating between $600 million to $700 million in revenue for the fiscal year 2024 [1] Group 2: Market Position and Future Outlook - Lantronix aims to leverage the partnership to address the growing demand for 5G products, which are essential for various applications including automotive and industrial sectors [2] - The company is focused on enhancing its product offerings to ensure they meet the evolving needs of customers in a competitive market [2] - Lantronix's strategic initiatives are expected to position it favorably within the industry, particularly as the demand for 5G solutions continues to rise [1][2]

Revenue Performance - For the three months ended September 30, 2024, net revenue increased by $1,392,000 or 4.2% compared to the same period in 2023, driven by a 17.7% increase in the Embedded IoT Solutions product line [98]. - Embedded IoT Solutions generated $13,387,000 in revenue, accounting for 38.9% of total net revenue, while IoT System Solutions and Software & Services generated $18,759,000 (54.5%) and $2,277,000 (6.6%) respectively [100]. - The Americas region saw a significant revenue decline of $5,513,000 or 24.0%, while EMEA and APJ regions experienced increases of 59.1% and 85.9% respectively [101]. Profitability and Expenses - Gross profit for the three months ended September 30, 2024, was $14,475,000, representing a gross margin of 42.1%, slightly down from 42.7% in the prior year [106]. - Selling, general and administrative expenses increased to $9,496,000, a rise of $326,000 or 3.6%, primarily due to higher personnel-related costs [108]. - Research and development expenses totaled $4,956,000, accounting for 14.4% of net revenue, a decrease of $150,000 or 2.9% compared to the previous year [111]. - Restructuring and severance charges amounted to $900,000 for the three months ended September 30, 2024, a significant increase from $20,000 in the same period of 2023 [112]. - The company reported a net loss of $2,502,000 for the three months ended September 30, 2024, compared to a net loss of $1,886,000 in the prior year [98]. - Operating expenses increased by $932,000, primarily due to restructuring and severance charges, partially offset by revenue growth [98]. Cash Flow and Working Capital - Working capital decreased by $1,679,000 from June 30, 2024, to September 30, 2024, totaling $57,115,000 [117]. - Cash and cash equivalents increased by $158,000, reaching $26,395,000 as of September 30, 2024 [117]. - Net cash provided by operating activities decreased by $4,835,000, totaling $2,663,000 for the three months ended September 30, 2024 [126]. - Net inventories increased by $1,835,000, or 6.6%, from June 30, 2024, to September 30, 2024 [125]. - Accounts payable increased by $6,802,000, or 65.7%, from June 30, 2024, to September 30, 2024 [125]. - Contract manufacturers' receivables increased by $1,321,000, or 94.3%, from June 30, 2024, to September 30, 2024 [128]. - Net cash used in investing activities was $157,000 for the three months ended September 30, 2024, compared to $486,000 in the prior year [129]. - Net cash used in financing activities increased by $1,363,000, totaling $2,348,000 for the three months ended September 30, 2024 [126]. - The company anticipates that primary factors affecting cash and liquidity include net revenue, working capital requirements, and capital expenditures [121]. - The company is in compliance with all covenants of the Loan Agreement as of the date of the report [119]. Strategic Focus - The company continues to focus on high-growth industries such as Smart Cities, Automotive, and Enterprise markets, leveraging its IoT solutions to capitalize on market opportunities [88].