Core Insights - Lantronix Inc. will showcase its Out-of-Band (OOB) management solutions at Cisco Live 2026 in Amsterdam, aimed at reducing unscheduled downtime through automated management and recovery [1][2] Company Overview - Lantronix is a global leader in Edge AI and Industrial IoT solutions, providing intelligent computing, secure connectivity, and remote management for mission-critical applications [3] - The company serves high-growth markets such as smart cities, enterprise IT, and unmanned systems, including drones, enabling customers to optimize operations and accelerate digital transformation [3] Product Features - The OOB solutions offer end-to-end workflows that connect console access, centralized administration, and operational automation across distributed sites and large-scale environments [2] - Key benefits include reduced downtime, quicker incident response, and faster recovery, maintaining secure access to remote infrastructure during outages or security incidents [6] - The solutions also aim to reduce manual work in Network Operations Centers (NOCs) and field operations by standardizing common tasks [6] Event Details - Lantronix will conduct a speaking session titled "Out-of-Band Everywhere," focusing on how OOB advancements enhance network infrastructure management and security while generating new business options [2][6] - The session is scheduled for February 10, 2026, at 15:20, featuring Ryan Hogg, the director of Product Strategy [6]

Core Insights - Lantronix Inc. reported strong financial results for Q2 FY2026, with net revenue of $29.8 million and a non-GAAP EPS of $0.04, reflecting continued momentum in their Edge AI strategy and customer engagement [4][5]. Management Commentary - The company emphasized disciplined execution and the advancement of customer programs from development to initial production, particularly in the unmanned systems industry [2]. - Lantronix's technology is increasingly being relied upon by OEMs in defense and autonomous applications, positioning the company as a platform partner rather than just a component supplier [2]. - The inclusion of partners in the Department of War's Drone Dominance initiative highlights the relevance of Lantronix's platform in the defense ecosystem [2]. Financial Results - Q2 FY2026 highlights include: - Net Revenue: $29.8 million - GAAP EPS: ($0.03) - Non-GAAP EPS: $0.04 - Cash and Cash Equivalents: $23.0 million - Increased FY26 Drone Revenue Expectation: $8 million-$12 million, up from $5 million-$10 million [4][5]. Product and Partnership Developments - Lantronix partnered with Trillium Engineering for gimbaled imaging systems, validating the performance of its Edge AI architecture [5]. - The company secured a design win with Flock Safety in the Drone-as-First Responder category, expanding its Edge AI capabilities into public safety applications [5]. - Collaboration with Safe Pro Group aims to enhance AI-enabled threat detection for real-time identification of hazards [5]. Industry Recognition - Lantronix received several awards for innovation in Edge AI and IoT, including being named a Top 100 Edge Computing Leader by CRN for 2025 [6]. - The company won the 2025 IoT Edge Computing Excellence Award for its Open-Q™ System-on-Module portfolio [6]. Financial Outlook - The company provided guidance for Q3 FY2026, projecting revenue between $28.5 million and $32.5 million, with a midpoint of $30.5 million and non-GAAP EPS between $0.03 and $0.06 [6].

Financial Data and Key Metrics Changes - In Q1 2026, underlying sales increased by 2% year-over-year, with adjusted segment EBITDA margin at 27.7% and adjusted earnings per share (EPS) at $1.46, reflecting a 6% increase year-over-year [9][10][17] - The company expects full-year sales growth of approximately 4% and adjusted EPS guidance raised to $6.40-$6.55 per share [10][23] Business Line Data and Key Metrics Changes - The software and systems segment saw underlying sales growth of 3%, driven by strong performance in test and measurement, which grew 11% [20][24] - Intelligent devices grew by 2%, while safety and productivity increased by 1% [20][22] - The Ovation business experienced a significant increase of 74% in orders, driven by large project wins [12][29] Market Data and Key Metrics Changes - North America, India, and the Middle East and Africa showed robust demand, with North America orders up 18% [12][32] - Europe and China experienced ongoing softness, with orders in Europe down low single digits and China down high single digits [12][32] - The overall order growth was 9%, with significant contributions from power and LNG sectors [12][29] Company Strategy and Development Direction - The company aims to return $10 billion to shareholders through share repurchases and dividends, with a focus on organic growth and operational excellence [5][10] - Emerson's automation portfolio is aligned with secular trends such as electrification and energy security, expected to drive growth over the next three years [4][5] - The company is committed to enhancing adjusted segment EBITDA margins by 240 basis points by 2028 [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, supported by a strong start to the year and operational excellence [9][10] - The company noted that AI capabilities integrated into their software offerings are expected to accelerate growth rather than disrupt it [33] - Concerns were raised about the softness in Europe and China, particularly in the chemical sector, but there are signs of growth in test and measurement and power generation [44][60] Other Important Information - Emerson completed $250 million in share repurchases in Q1 and plans to return approximately $2.2 billion to shareholders [10][23] - The company was recognized as the 2026 Industrial IoT Company of the Year, highlighting its leadership in industrial IoT technology [10] Q&A Session Summary Question: Can you break down the 9% order growth in Q1 between process and hybrid? - Management noted that the growth was predominantly driven by modernization and behind-the-meter power generating capacity at data centers, with significant activity in test and measurement [29][30] Question: What are the expectations for the impact of AI on software growth? - Management indicated that AI capabilities are expected to complement and accelerate growth in software offerings, with minimal disruption anticipated [33] Question: How should we think about the cadence of longer-cycle orders translating into sales? - Management stated that the backlog supports mid-single-digit growth and that the build is across various business segments, particularly in control systems and software [40] Question: What is the outlook for the chemical sector in Europe and China? - Management acknowledged continued flat activity in Europe, particularly in chemicals, and a bearish outlook for China, with expectations of low single-digit declines [44][60] Question: What is the company's strategy regarding the opportunity in Venezuela? - Management highlighted a long-established history in Venezuela and plans to mobilize resources to capitalize on potential growth opportunities in the region, particularly in power generation [54][56]

Core Viewpoint - Lantronix Inc. is set to release its financial results for the second quarter of fiscal 2026 on February 4, 2026, after market close [1]. Group 1: Financial Results Announcement - The financial results will cover the period ended December 31, 2025 [1]. - An investor conference call and audio webcast will be held on February 4, 2026, at 1:30 p.m. Pacific Time [2]. - Investors can access a replay of the conference call starting at approximately 4:00 p.m. Pacific Time on the same day [3]. Group 2: Company Overview - Lantronix Inc. is recognized as a global leader in Edge AI and Industrial IoT solutions [4]. - The company provides intelligent computing, secure connectivity, and remote management for mission-critical applications [4]. - Lantronix serves high-growth markets such as smart cities, enterprise IT, and unmanned systems, facilitating operational optimization and digital transformation [4].

Core Viewpoint - SPDR S&P Kensho Intelligent Structures ETF (SIMS) provides targeted exposure to companies involved in the digital modernization of buildings and infrastructure, focusing on automation, sensing, communications, and enabling software and materials [1] Investment Strategy - The ETF aims to capture revenue associated with smarter construction, efficient energy management, connected utilities, and industrial IoT by maintaining a diversified portfolio across hardware, platforms, and specialized inputs [1] - Return drivers are primarily linked to the secular adoption of intelligent systems and periodic upswings in capital-expenditure cycles [1] Risk Factors - The risk profile is more idiosyncratic than broad market beta, influenced by innovation and procurement cycles that affect revenue dispersion [1] - A key risk to monitor is thematic concentration, as narrower revenue sources and smaller issuers may lead to amplified drawdowns during funding or adoption setbacks [1] Portfolio Role - SIMS can serve as a satellite thematic sleeve, a completion tool bridging industrials and technology, or a tactical overlay aligned with infrastructure investment programs [1] - Likely users include allocators building long-horizon innovation mandates and multi-asset managers seeking targeted exposure to modernization trends within a diversified equity portfolio [1]

Core Insights - CSP Inc. (CSPI) has improved its operating profile as it enters fiscal 2026, driven by a growing service mix in its Technology Solutions (TS) segment and increased adoption of its AZT PROTECT cybersecurity platform in the High-Performance Products (HPP) segment [1] Financial Performance - CSPI reported revenues of $14.5 million for Q4 fiscal 2025, an 11% increase from $13 million in the same quarter last year [2] - The gross margin increased to 37%, up more than 800 basis points year-over-year, primarily due to accelerated service growth [2] - Service revenues surged by 63% or $2.5 million, improving gross profit and narrowing operating losses despite a decline in product revenues [3] Service Segment Growth - Services accounted for 44% of total revenues in Q4 fiscal 2025, up from approximately 30% in the prior-year quarter, and for the full year, services rose to 36% from 33% [4] - The managed cloud and managed service provider offerings expanded at a healthy double-digit rate in fiscal 2025, with plans to allocate more resources and add sales representatives for further expansion in 2026 [5] Maritime Industry Focus - CSPI's managed service strategy has been particularly effective in the maritime vertical, with expectations for service contracts from expanded installations to contribute significantly in fiscal 2026 [6] - The company entered fiscal 2026 with a backlog related to cruise ship installations and upgrades, enhancing revenue visibility [6] Customer Adoption and Expansion Strategy - The HPP segment is positioning AZT PROTECT as a long-cycle growth engine, with a growing pipeline of deployment opportunities and a channel approach through "gold star resellers" [7] - The company has successfully executed a strategy of deploying at one operational site and expanding to additional locations within the same enterprise [8] - Customers span multiple industries, including steel, energy, manufacturing, and telecommunications, with potential for significant multi-site deployments [9] Lead Generation and Channel Validation - Participation in Rockwell events has become a major commercial catalyst for AZT PROTECT, with a 50% year-over-year increase in leads reported during the 2025 Rockwell Fair [10] - The quality of leads has improved significantly due to greater distributor involvement, which is crucial for scaling AZT PROTECT adoption [11] Product Development in IIoT - CSPI has expanded AZT PROTECT into embedded industrial IoT (IIoT) environments, addressing challenges in protecting industrial IoT devices [12] - Enhancements to the software allow integration into existing systems of industrial IoT vendors, with a growing pipeline into the unserved industrial edge compute market [13] Balance Sheet Development - The company entered a buy-in contract in October 2024 as part of a planned termination of its U.K. defined benefit pension plan, paying £8.5 million, with expectations for this to transition into a buy-out contract in fiscal 2026 [14]

Group 1 - Lantronix Inc. will attend the 28th Annual Needham Growth Conference in New York City [1] - CEO Saleel Awsare and CFO Brent Stringham will participate in a fireside chat on January 13, from 8:45 to 9:25 a.m. Eastern Time [2] - Management will engage in one-on-one meetings with institutional investors throughout the day [2] Group 2 - Lantronix is a global leader in Edge AI and Industrial IoT solutions, providing intelligent computing, secure connectivity, and remote management for mission-critical applications [3] - The company serves high-growth markets such as smart cities, enterprise IT, and commercial and defense unmanned systems [3] - Lantronix's offerings help organizations optimize operations and accelerate digital transformation, enhancing efficiency, security, and competitive advantage in an AI-driven environment [3]

Core Insights - Emerson has been awarded the title of '2026 Industrial IoT Company of the Year' at the 10th annual IoT Breakthrough Awards, highlighting its leadership in industrial IoT innovation [1][3] - The company’s acquisition of Aspen Technology in 2025 has positioned it as a global automation leader with a comprehensive technology portfolio that includes intelligent devices, secure control systems, and enterprise optimization software [1][2] Group 1 - Emerson's industrial IoT technology stack supports critical industries such as energy, liquefied natural gas, power, life sciences, chemicals, aerospace, and semiconductors, enabling them to operate with speed, safety, reliability, and confidence [2][3] - The company is advancing automation through a new software-defined and data-centric platform that facilitates modernization, faster technology deployment, and AI-driven optimization, paving the way for autonomous operations [2][3] Group 2 - Emerson's focus on growth drivers includes digital transformation, electrification, energy security, and near-shoring, which are essential for addressing global challenges [3] - This recognition marks the seventh time Emerson has received the 'Industrial IoT Company of the Year' award, previously being honored for 'Industrial Innovation of the Year' and 'Analytics Platform of the Year' [3][4] - The IoT Breakthrough Awards program received over 4,000 nominations this year, underscoring the competitive landscape and Emerson's consistent excellence in innovation [3][4]

Financial Data and Key Metrics Changes - Overall fourth quarter revenue increased by 11% to $14.5 million compared to $13 million in the same quarter last year [5][13] - Gross margins improved by over 800 basis points to 37% in the fourth quarter, driven by significant growth in service revenue [5][13] - For the full fiscal year, revenue grew by 6%, with gross profit at $18.5 million, representing 32% of sales [15][16] Business Line Data and Key Metrics Changes - Service revenue grew by 63% in the fourth quarter, accounting for approximately 44% of total revenue, up from 30% in the prior year [6][13] - For the full year, service revenue represented 36% of total revenue, compared to 33% the previous year [6] - Product revenue decreased by $1.1 million in the fourth quarter [13] Market Data and Key Metrics Changes - The company expanded its customer base across various industries, including finance, manufacturing, oil and gas, healthcare, aerospace, education, utilities, telecommunications, and maritime [6] - The managed cloud and MSP services segment experienced healthy double-digit growth during the fiscal year [7] Company Strategy and Development Direction - The company aims to build on the growth of its service business by allocating more resources and adding sales representatives [7] - There is a focus on expanding the AZT Protect cybersecurity offering, particularly in the maritime industry and industrial IoT devices [10][11] - The company is optimistic about converting its growing pipeline into significant sales in fiscal 2026 [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong finish to the fiscal year and the potential for increased profitability in fiscal 2026 [5][12] - The company believes it is well-positioned to leverage revenue growth going forward, supported by investments made in infrastructure [12] Other Important Information - The company reported a net loss of $191,000 for the fourth quarter, compared to a net income of $1.7 million in the prior year [14] - Cash and cash equivalents stood at $27.4 million as of September 30, 2025, down about 10% from the previous year [15] Q&A Session Summary Question: Service revenue calculation - Analyst confirmed the service revenue in the fourth quarter was approximately $6.4 million, based on 44% of total sales [19][20] Question: IIoT expansion of AZT Protect - Management acknowledged the potential for significant growth in the IIoT market and the need for OEM agreements [25][26] Question: Acronis integration - Management stated that AZT is being integrated into Acronis software, but revenue projections are still uncertain [51][52] Question: UFT relationship updates - Management provided updates on the relationship with UFT, indicating progress with case studies and future marketing events [53] Question: Revenue predictability - Management indicated that revenue projections for the upcoming year are uncertain and may vary [72]

Core Insights - Micron Technology, Inc. is set to report its first-quarter fiscal 2026 results on December 17, with projected revenues of $12.5 billion, indicating a year-over-year growth of 44.3% [1] - The company anticipates adjusted earnings of $3.75 per share, with the consensus estimate recently revised upward to $3.83, reflecting a year-over-year improvement of 114% [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Micron's first-quarter revenues is $12.57 billion, which is close to the company's projection [1] - DRAM revenues are expected to reach $10.13 billion, showing a significant year-over-year growth of 58.3% [7][8] Market Dynamics - The demand for memory chips is being driven by the increasing adoption of GPU-enabled AI servers, which is expected to positively impact Micron's revenues [6] - Improved supply-demand dynamics in the memory chip market have led to better pricing for DRAM chips, contributing to the anticipated revenue growth [7][9] Earnings Performance - Micron has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 9.4% [3] - The company's Earnings ESP stands at +5.97%, indicating a strong likelihood of an earnings beat this season [5] Stock Performance - Year-to-date, Micron's shares have surged by 207.1%, outperforming the Zacks Computer – Integrated Systems industry's rise of 87.3% [11] - The stock has also outperformed major semiconductor companies, including Broadcom, Taiwan Semiconductor Manufacturing, and NVIDIA [11] Valuation Metrics - Micron's forward 12-month price-to-earnings (P/E) ratio is 13.97, significantly lower than the industry average of 23.83, indicating a potential undervaluation [14] - The company also trades at a discount compared to peers like Broadcom, NVIDIA, and Taiwan Semiconductor Manufacturing [16] Strategic Positioning - Micron is well-positioned in transformative tech trends, including AI, high-performance data centers, and industrial IoT, which are expected to drive long-term growth [17] - The company's diversification strategy has shifted focus from volatile consumer electronics to more stable sectors like automotive and enterprise IT [18] Future Growth Potential - Micron's advancements in high-bandwidth memory (HBM) products, particularly HBM3E, are attracting interest due to their efficiency and suitability for AI workloads [19] - The combination of evolving tech trends and a robust diversification strategy is likely to support Micron's growth trajectory [19] Investment Consideration - Given Micron's strong fundamentals, established position in the AI-driven memory market, and attractive valuation, accumulating MU stock ahead of its first-quarter fiscal 2026 results is recommended [20]