Lantronix Inc. (NASDAQ: LTRX), a global provider of compute and
connectivity IoT solutions that target high-growth applications in
Smart Cities, Automotive and Enterprise, today reported results for
its second quarter of fiscal 2024.
Net revenue totaled $37.0 million, up 12 percent
sequentially and up 18 percent year-over-year.
GAAP EPS of ($0.07), compared to ($0.07) in the
prior year and ($0.05) in the prior quarter.
Non-GAAP EPS of $0.08, compared to $0.04 in the
prior year and $0.07 in the prior quarter.
Business Outlook
For the third fiscal quarter of 2024, the
company expects revenue in a range of $38 million to $42 million
and non-GAAP EPS of $0.09 to $0.13 per share.
For fiscal year 2024, the company expects
revenue in a range of $155 million to $165 million and non-GAAP EPS
in a range of $0.35 to $0.45 per share.
Conference Call and Webcast
Management will host an investor conference call
and audio webcast on Thursday, Feb. 8, 2024, at 2:00 p.m. Pacific
Time (5:00 p.m. Eastern Time) to discuss its results for the second
quarter of fiscal 2024 that ended Dec. 31, 2023. To access the live
conference call, investors should dial 1-844-802-2442 (US) or
1-412-317-5135 (international) and indicate that they are
participating in the Lantronix Q2 FY 2024 call. The webcast will be
available simultaneously via the investor relations section of the
company’s website.
Investors can access a replay of the conference
call starting at approximately 7:00 p.m. Pacific Time on Feb. 8,
2024, at the Lantronix website. A telephonic replay will also be
available through Feb. 15, 2024, by dialing 1-877-344-7529 (US) or
1-412-317-0088 (international) or Canada toll-free at
1-855-669-9658 and entering passcode 8152889.
About Lantronix
Lantronix Inc. is a global provider of compute
and connectivity IoT solutions that target high-growth industries,
including Smart Cities, Automotive and Enterprise. Lantronix’s
products and services empower companies to achieve success in the
growing IoT markets by delivering customizable solutions that
address each layer of the IoT stack. Lantronix’s leading-edge
solutions include intelligent substation infrastructure,
infotainment systems and video surveillance, supplemented with
advanced Out-of-Band Management (OOB) for Cloud and Edge
Computing.
For more information, visit the Lantronix
website.
Discussion of Non-GAAP Financial
Measures
Lantronix believes that the presentation of
non-GAAP financial information, when presented in conjunction with
the corresponding GAAP measures, provides important supplemental
information to management and investors regarding financial and
business trends relating to the company’s financial condition and
results of operations. Management uses the aforementioned non-GAAP
measures to monitor and evaluate ongoing operating results and
trends to gain an understanding of our comparative operating
performance. The non-GAAP financial measures disclosed by the
company should not be considered a substitute for, or superior to,
financial measures calculated in accordance with GAAP, and the
financial results calculated in accordance with GAAP and
reconciliations of the non-GAAP financial measures to the financial
measures calculated in accordance with GAAP should be carefully
evaluated. The non-GAAP financial measures used by the company may
be calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies. The company
has provided reconciliations of the non-GAAP financial measures to
the most directly comparable GAAP financial measures.
Non-GAAP net income consists of net loss
excluding (i) share-based compensation and the employer portion of
withholding taxes on stock grants, (ii) depreciation and
amortization, (iii) interest income (expense), (iv) other income
(expense), (v) income tax provision (benefit), (vi) restructuring,
severance and related charges, (vii) acquisition related costs,
(viii) impairment of long-lived assets, (ix) amortization of
purchased intangibles, (x) amortization of manufacturing profit in
acquired inventory, (xi) fair value remeasurement of earnout
consideration, and (xii) loss on extinguishment of debt.
Non-GAAP EPS is calculated by dividing non-GAAP
net loss by non-GAAP weighted-average shares outstanding (diluted).
For purposes of calculating non-GAAP EPS, the calculation of GAAP
weighted-average shares outstanding (diluted) is adjusted to
exclude share-based compensation, which for GAAP purposes is
treated as proceeds assumed to be used to repurchase shares under
the GAAP treasury stock method.
Guidance on earnings per share growth is
provided only on a non-GAAP basis due to the inherent difficulty of
forecasting the timing or amount of certain items that have been
excluded from the forward-looking non-GAAP measures, and a
reconciliation to the comparable GAAP guidance has not been
provided because certain factors that are materially significant to
Lantronix’s ability to estimate the excluded items are not
accessible or estimable on a forward-looking basis without
unreasonable effort.
Forward-Looking Statements
This news release contains forward-looking
statements, including statements concerning our revenue and
earnings expectations for the third fiscal quarter of 2024 and
fiscal year 2024. These forward-looking statements are intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. We have based our
forward-looking statements on our current expectations and
projections about trends affecting our business and industry and
other future events. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy. Forward-looking statements
are subject to substantial risks and uncertainties that could cause
our results or experiences, or future business, financial
condition, results of operations or performance, to differ
materially from our historical results or those expressed or
implied in any forward-looking statement contained in this news
release. Other factors which could have a material adverse effect
on our operations and future prospects or which could cause actual
results to differ materially from our expectations include, but are
not limited to: the effects of negative or worsening regional and
worldwide economic conditions or market instability on our
business, including effects on purchasing decisions by our
customers; our ability to mitigate any disruption in our and our
suppliers’ and vendors’ supply chains due to the COVID-19 pandemic
or other outbreaks, wars and recent conflicts in Europe, Asia and
the Middle East, hostilities in the Red Sea, or other causes; our
ability to successfully convert our backlog and current
demand; the impact of the COVID-19 pandemic or another
pandemic or similar outbreak, including the emergence of new more
contagious and/or vaccine-resistant strains, on our business,
employees, supply and distribution chains and the global economy;
our ability to successfully implement our acquisitions strategy or
integrate acquired companies; uncertainty as to the future
profitability of acquired businesses, and delays in the realization
of, or the failure to realize, any accretion from acquisition
transactions; acquiring, managing and integrating new operations,
businesses or assets, and the associated diversion of management
attention or other related costs or difficulties; our ability to
continue to generate revenue from products sold into mature
markets; our ability to develop, market, and sell new products; our
ability to succeed with our new software offerings; fluctuations in
our revenue due to the project-based timing of orders from certain
customers; unpredictable timing of our revenues due to the lengthy
sales cycle for our products and services and potential delays in
customer completion of projects; our ability to accurately forecast
future demand for our products; delays in qualifying revisions of
existing products; constraints or delays in the supply of, or
quality control issues with, certain materials or components;
difficulties associated with the delivery, quality or cost of our
products from our contract manufacturers or suppliers; risks
related to the outsourcing of manufacturing and international
operations; difficulties associated with our distributors or
resellers; intense competition in our industry and resultant
downward price pressure; rises in inventory levels and inventory
obsolescence; undetected software or hardware errors or defects in
our products; cybersecurity risks; our ability to obtain
appropriate industry certifications or approvals from governmental
regulatory bodies; changes in applicable U.S. and foreign
government laws, regulations, and tariffs; our ability to protect
patents and other proprietary rights and avoid infringement of
others’ proprietary technology rights; issues relating to the
stability of our financial and banking institutions and
relationships; the level of our indebtedness, our ability to
service our indebtedness and the restrictions in our debt
agreements; the impact of rising interest rates; our ability to
attract and retain qualified management; and any additional factors
included in our Report on Form 10-K for the fiscal year ended June
30, 2023, filed with the Securities and Exchange Commission (the
“SEC”) on Sept. 12, 2023, including in the section entitled “Risk
Factors” in Item 1A of Part I of that report; in our Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30,
2023, filed with the SEC on November 8, 2023, including in the
section entitled “Risk Factors” in Item 1A of Part II of such
report; and in our other public filings with the SEC. In addition,
actual results may differ as a result of additional risks and
uncertainties of which we are currently unaware or which we do not
currently view as material to our business. For these reasons,
investors are cautioned not to place undue reliance on any
forward-looking statements. The forward-looking statements we make
speak only as of the date on which they are made. We expressly
disclaim any intent or obligation to update any forward-looking
statements after the date hereof to conform such statements to
actual results or to changes in our opinions or expectations,
except as required by applicable law or the rules of the Nasdaq
Stock Market LLC. If we do update or correct any forward-looking
statements, investors should not conclude that we will make
additional updates or corrections.
© 2024 Lantronix Inc. All rights reserved.
Lantronix is a registered trademark.
Lantronix Investor Relations
Contact: Jeremy
WhitakerChief Financial Officerinvestors@lantronix.com
LANTRONIX, INC. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands) |
|
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
2023 |
|
2023 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
22,146 |
|
|
$ |
13,452 |
|
Accounts receivable, net |
|
|
30,381 |
|
|
|
27,682 |
|
Inventories, net |
|
|
42,774 |
|
|
|
49,736 |
|
Contract manufacturers' receivables |
|
|
1,767 |
|
|
|
3,019 |
|
Prepaid expenses and other current assets |
|
|
2,839 |
|
|
|
2,662 |
|
Total current assets |
|
|
99,907 |
|
|
|
96,551 |
|
Property and equipment, net |
|
|
4,815 |
|
|
|
4,629 |
|
Goodwill |
|
|
27,824 |
|
|
|
27,824 |
|
Intangible assets, net |
|
|
7,871 |
|
|
|
10,565 |
|
Lease right-of-use assets |
|
|
10,617 |
|
|
|
11,583 |
|
Other assets |
|
|
589 |
|
|
|
472 |
|
Total assets |
|
$ |
151,623 |
|
|
$ |
151,624 |
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
9,595 |
|
|
$ |
12,401 |
|
Accrued payroll and related expenses |
|
|
3,303 |
|
|
|
2,431 |
|
Current portion of long-term debt, net |
|
|
3,002 |
|
|
|
2,743 |
|
Other current liabilities |
|
|
32,089 |
|
|
|
28,813 |
|
Total current liabilities |
|
|
47,989 |
|
|
|
46,388 |
|
Long-term debt, net |
|
|
14,720 |
|
|
|
16,221 |
|
Other non-current liabilities |
|
|
12,138 |
|
|
|
11,459 |
|
Total liabilities |
|
|
74,847 |
|
|
|
74,068 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
299,385 |
|
|
|
295,686 |
|
Accumulated deficit |
|
|
(222,984 |
) |
|
|
(218,505 |
) |
Accumulated other comprehensive income |
|
371 |
|
|
|
371 |
|
Total stockholders' equity |
|
|
76,776 |
|
|
|
77,556 |
|
Total liabilities and stockholders' equity |
|
$ |
151,623 |
|
|
$ |
151,624 |
|
|
|
|
|
|
LANTRONIX, INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
December 31, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net revenue |
|
$ |
37,038 |
|
|
$ |
33,031 |
|
|
$ |
31,506 |
|
|
$ |
70,069 |
|
|
$ |
63,301 |
|
Cost of revenue |
|
|
22,007 |
|
|
|
18,934 |
|
|
|
17,712 |
|
|
|
40,941 |
|
|
|
35,471 |
|
Gross profit |
|
|
15,031 |
|
|
|
14,097 |
|
|
|
13,794 |
|
|
|
29,128 |
|
|
|
27,830 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
10,224 |
|
|
|
9,170 |
|
|
|
9,813 |
|
|
|
19,394 |
|
|
|
18,970 |
|
Research and development |
|
|
4,725 |
|
|
|
5,106 |
|
|
|
5,084 |
|
|
|
9,831 |
|
|
|
9,610 |
|
Restructuring, severance and related charges |
|
|
530 |
|
|
|
20 |
|
|
|
82 |
|
|
|
550 |
|
|
|
174 |
|
Acquisition-related costs |
|
|
- |
|
|
|
- |
|
|
|
102 |
|
|
|
- |
|
|
|
315 |
|
Fair value remeasurement of earnout consideration |
|
|
- |
|
|
|
(9 |
) |
|
|
(673 |
) |
|
|
(9 |
) |
|
|
(673 |
) |
Amortization of intangible assets |
|
|
1,310 |
|
|
|
1,384 |
|
|
|
1,497 |
|
|
|
2,694 |
|
|
|
2,916 |
|
Total operating expenses |
|
|
16,789 |
|
|
|
15,671 |
|
|
|
15,905 |
|
|
|
32,460 |
|
|
|
31,312 |
|
Loss from operations |
|
|
(1,758 |
) |
|
|
(1,574 |
) |
|
|
(2,111 |
) |
|
|
(3,332 |
) |
|
|
(3,482 |
) |
Interest expense, net |
|
|
(232 |
) |
|
|
(338 |
) |
|
|
(354 |
) |
|
|
(570 |
) |
|
|
(616 |
) |
Other income (loss), net |
|
|
(23 |
) |
|
|
19 |
|
|
|
(26 |
) |
|
|
(4 |
) |
|
|
8 |
|
Loss before income taxes |
|
|
(2,013 |
) |
|
|
(1,893 |
) |
|
|
(2,491 |
) |
|
|
(3,906 |
) |
|
|
(4,090 |
) |
Provision(benefit) for income taxes |
|
|
580 |
|
|
|
(7 |
) |
|
|
118 |
|
|
|
573 |
|
|
|
172 |
|
Net loss |
|
$ |
(2,593 |
) |
|
$ |
(1,886 |
) |
|
$ |
(2,609 |
) |
|
$ |
(4,479 |
) |
|
$ |
(4,262 |
) |
Net loss per share - basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.12 |
) |
Weighted-average common shares - basic and diluted |
|
|
37,354 |
|
|
|
36,982 |
|
|
|
36,352 |
|
|
|
37,170 |
|
|
|
35,883 |
|
|
|
|
|
|
|
|
|
|
|
|
LANTRONIX, INC. |
UNAUDITED RECONCILIATION OF NON-GAAP
ADJUSTMENTS |
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(2,593 |
) |
|
$ |
(1,886 |
) |
|
$ |
(2,609 |
) |
|
$ |
(4,479 |
) |
|
$ |
(4,262 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
64 |
|
|
|
41 |
|
|
|
61 |
|
|
|
105 |
|
|
|
112 |
|
Employer portion of withholding taxes on stock grants |
|
|
1 |
|
|
|
4 |
|
|
|
- |
|
|
|
5 |
|
|
|
12 |
|
Amortization of manufacturing profit in acquired inventory |
|
|
189 |
|
|
|
317 |
|
|
|
80 |
|
|
|
506 |
|
|
|
104 |
|
Depreciation and amortization |
|
|
109 |
|
|
|
86 |
|
|
|
118 |
|
|
|
195 |
|
|
|
248 |
|
Total adjustments to cost of revenue |
|
|
363 |
|
|
|
448 |
|
|
|
259 |
|
|
|
811 |
|
|
|
476 |
|
Selling, general and administrative: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
1,628 |
|
|
|
1,273 |
|
|
|
1,434 |
|
|
|
2,901 |
|
|
|
2,839 |
|
Employer portion of withholding taxes on stock grants |
|
|
10 |
|
|
|
37 |
|
|
|
10 |
|
|
|
47 |
|
|
|
142 |
|
Depreciation and amortization |
|
|
338 |
|
|
|
334 |
|
|
|
260 |
|
|
|
672 |
|
|
|
415 |
|
Total adjustments to selling, general and administrative |
|
|
1,976 |
|
|
|
1,644 |
|
|
|
1,704 |
|
|
|
3,620 |
|
|
|
3,396 |
|
Research and development: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
484 |
|
|
|
428 |
|
|
|
370 |
|
|
|
912 |
|
|
|
702 |
|
Employer portion of withholding taxes on stock grants |
|
|
5 |
|
|
|
13 |
|
|
|
2 |
|
|
|
18 |
|
|
|
24 |
|
Depreciation and amortization |
|
|
52 |
|
|
|
108 |
|
|
|
63 |
|
|
|
160 |
|
|
|
127 |
|
Total adjustments to research and development |
|
|
541 |
|
|
|
549 |
|
|
|
435 |
|
|
|
1,090 |
|
|
|
853 |
|
Restructuring, severance and related charges |
|
|
530 |
|
|
|
20 |
|
|
|
82 |
|
|
|
550 |
|
|
|
174 |
|
Acquisition related costs |
|
|
- |
|
|
|
- |
|
|
|
102 |
|
|
|
- |
|
|
|
315 |
|
Fair value remeasurement of earnout consideration |
|
|
- |
|
|
|
(9 |
) |
|
|
(673 |
) |
|
|
(9 |
) |
|
|
(673 |
) |
Amortization of purchased intangible assets |
|
|
1,310 |
|
|
|
1,384 |
|
|
|
1,497 |
|
|
|
2,694 |
|
|
|
2,916 |
|
Litigation settlement cost |
|
|
- |
|
|
|
- |
|
|
|
80 |
|
|
|
- |
|
|
|
80 |
|
Total non-GAAP adjustments to operating expenses |
|
|
4,357 |
|
|
|
3,588 |
|
|
|
3,227 |
|
|
|
7,945 |
|
|
|
7,061 |
|
Interest expense, net |
|
|
232 |
|
|
|
338 |
|
|
|
354 |
|
|
|
570 |
|
|
|
616 |
|
Other (income) expense, net |
|
|
23 |
|
|
|
(19 |
) |
|
|
26 |
|
|
|
4 |
|
|
|
(8 |
) |
Provision (benefit) for income taxes |
|
|
580 |
|
|
|
(7 |
) |
|
|
118 |
|
|
|
573 |
|
|
|
172 |
|
Total non-GAAP adjustments |
|
|
5,555 |
|
|
|
4,348 |
|
|
|
3,984 |
|
|
|
9,903 |
|
|
|
8,317 |
|
Non-GAAP net income |
|
$ |
2,962 |
|
|
$ |
2,462 |
|
|
$ |
1,375 |
|
|
$ |
5,424 |
|
|
$ |
4,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share - diluted |
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.14 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for GAAP net income per share - diluted |
|
|
37,354 |
|
|
|
36,982 |
|
|
|
36,352 |
|
|
|
37,170 |
|
|
|
35,883 |
|
Non-GAAP adjustment |
|
|
1,228 |
|
|
|
693 |
|
|
|
819 |
|
|
|
938 |
|
|
|
1,126 |
|
Denominator for non-GAAP net income per share - diluted |
|
|
38,582 |
|
|
|
37,675 |
|
|
|
37,171 |
|
|
|
38,108 |
|
|
|
37,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LANTRONIX, INC. |
|
UNAUDITED NET REVENUES BY PRODUCT LINE AND
REGION |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Embedded IoT Solutions |
$ |
11,764 |
|
|
$ |
11,373 |
|
|
$ |
13,668 |
|
|
$ |
23,137 |
|
|
$ |
28,763 |
|
IoT System Solutions |
|
23,022 |
|
|
|
19,036 |
|
|
|
14,913 |
|
|
|
42,058 |
|
|
|
29,534 |
|
Software & Services |
|
2,252 |
|
|
|
2,622 |
|
|
|
2,925 |
|
|
|
4,874 |
|
|
|
5,004 |
|
|
$ |
37,038 |
|
|
$ |
33,031 |
|
|
$ |
31,506 |
|
|
$ |
70,069 |
|
|
$ |
63,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Americas |
$ |
20,601 |
|
|
$ |
22,933 |
|
|
$ |
19,688 |
|
|
$ |
43,534 |
|
|
$ |
40,618 |
|
EMEA |
|
12,886 |
|
|
|
6,591 |
|
|
|
4,905 |
|
|
|
19,477 |
|
|
|
10,106 |
|
Asia Pacific Japan |
|
3,551 |
|
|
|
3,507 |
|
|
|
6,913 |
|
|
|
7,058 |
|
|
|
12,577 |
|
|
$ |
37,038 |
|
|
$ |
33,031 |
|
|
$ |
31,506 |
|
|
$ |
70,069 |
|
|
$ |
63,301 |
|
|
|
|
|
|
|
|
|
|
|
|
Grafico Azioni Lantronix (NASDAQ:LTRX)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Lantronix (NASDAQ:LTRX)
Storico
Da Mag 2023 a Mag 2024