Lantronix(US:LTRX)2025-02-06 21:15Financial Performance - Net revenue for the second quarter of fiscal 2025 was $31.2 million, aligning with the midpoint of the guidance range[1] - GAAP EPS for the second quarter was ($0.06), an improvement from ($0.07) in the prior year and the prior quarter[2] - Non-GAAP EPS for the second quarter was $0.04, down from $0.08 in the prior year and $0.06 in the prior quarter[2] - For the third fiscal quarter of 2025, the company expects revenue between $27.0 million and $31.0 million, with non-GAAP EPS projected at $0.01 to $0.05 per share[3] - Net revenue for the three months ended December 31, 2024, was $31,161,000, a decrease of 16% compared to $37,038,000 for the same period in 2023[18] - Non-GAAP net income for the six months ended December 31, 2024, was $4,094,000, compared to $5,424,000 in the same period of 2023, representing a decline of 24.5%[20] - The net loss for the three months ended December 31, 2024, was $2,372,000, slightly improved from a net loss of $2,593,000 in the same quarter of 2023[18] Revenue Breakdown - Embedded IoT Solutions revenue for the three months ended December 31, 2024, was $10,784,000, down 8.3% from $11,764,000 in the same quarter of 2023[22] - Americas region revenue for the three months ended December 31, 2024, was $16,386,000, a decrease of 20.5% compared to $20,601,000 in the same period last year[22] Expenses and Margins - Gross profit for the six months ended December 31, 2024, was $27,759,000, down from $29,128,000 in the prior year, reflecting a gross margin of 42.3%[18] - Operating expenses totaled $15,444,000 for the three months ended December 31, 2024, compared to $16,603,000 in the previous quarter, indicating a reduction of 7%[18] - Research and development expenses for the three months ended December 31, 2024, were $4,984,000, slightly up from $4,725,000 in the same quarter of 2023[18] - The company reported a non-GAAP gross margin of 43.2% for the three months ended December 31, 2024, compared to 41.6% in the same quarter of 2023[20] Assets and Liabilities - Cash and cash equivalents decreased to $19.2 million from $26.2 million as of June 30, 2024[17] - Total current assets decreased to $85.6 million from $88.9 million as of June 30, 2024[17] - Total liabilities increased to $56.3 million from $54.9 million as of June 30, 2024[17] - The accumulated deficit increased to ($227.9 million) from ($223.0 million) as of June 30, 2024[17] Strategic Focus - The company is focusing on three key vertical markets: Enterprise, Smart Cities, and Transportation, while advancing Edge AI solutions[3] - The company is integrating recently acquired IoT assets from Netcomm to drive future growth[3] Non-GAAP Adjustments - Total non-GAAP adjustments for the six months ended December 31, 2024, amounted to $8,968,000, compared to $9,903,000 in the prior year[20]