Lantronix(LTRX) - 2026 Q1 - Quarterly Results

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]