Irvine, Calif., January 30, 2014 – Lantronix, Inc. (the “Company”) (NASDAQ: LTRX), a global provider of smart networking and communications solutions for machine-to-machine (M2M) applications, today reported results for its second fiscal quarter ended December 31, 2013.
“The December quarter marked our second consecutive quarter of non-GAAP net income and sequential quarterly growth in sales of our Enterprise Solutions product line as a result of both new customer acquisitions and increased revenue contribution from several of our new Enterprise Solution product families,” said Kurt Busch, Lantronix president and CEO. “We continue to be pleased with the steady progress of our new OEM Module product families and as customer design wins ramp to production, we expect to reverse the revenue decline in this product line.”
Net revenue was $11.0 million for the second quarter of fiscal 2014, a decrease of $1.2 million, compared to $12.2 million for the second quarter of fiscal 2013 and an increase of $85,000, compared to $10.9 million for the first quarter of fiscal 2014. The year-over-year decline in net revenue was primarily due to a decrease in sales of mature product families.
Gross profit as a percentage of net revenue was 49.6% for the second quarter of fiscal 2014, compared to 49.6% for the second quarter of fiscal 2013 and 49.5% for the first quarter of fiscal 2014.
Operating expenses were $5.7 million for the second quarter of fiscal 2014, a decrease of $679,000, compared to $6.4 million for the second quarter of fiscal 2013 and an increase of $76,000, compared to $5.6 million for the first quarter of fiscal 2014.
GAAP net loss for the second quarter of fiscal 2014 was $(323,000), or ($0.02) per share, compared to a GAAP net loss of $(412,000), or ($0.03) per share, for the second quarter of fiscal 2013 and a GAAP net loss of $(267,000) or ($0.02) per share, for the first quarter of fiscal 2014.
Non-GAAP net income for the second quarter of fiscal 2014 was $191,000, or $0.01 per share compared to non-GAAP net income of $70,000 or $0.00 per share for the second quarter of fiscal 2013 and a non-GAAP net income of $220,000, or $0.01 per share, for the first quarter of fiscal 2014. For additional information regarding our non-GAAP results, see “Discussion of Non-GAAP Financial Measures” below.
Cash and cash equivalents were $6.1 million as of December 31, 2013, an increase of $855,000, compared with $5.2 million as of June 30, 2013.
Lantronix will host a conference call and webcast today at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) to discuss its second quarter fiscal 2014 financial results. Those wishing to participate in the live call should dial 866-318-8616 (international dial-in 617-399-5135) using the passcode 14576908. A webcast will be available simultaneously via the investor relations section of the Company’s website at www.lantronix.com.
A telephone replay will be available through February 7, 2014 by dialing 888-286-8010 (international dial-in 617-801-6888) and entering passcode 71047798.
Lantronix, Inc. (NASDAQ: LTRX) is a global provider of smart networking and communications solutions for machine-to-machine (M2M) applications. Lantronix OEM Modules and Enterprise Solutions enable machines, devices and sensors to be securely accessed, managed, monitored and controlled. Easy to integrate and deploy, Lantronix solutions enable customers to capitalize on the convergence of mobility with M2M systems and to participate in the Internet of Things (IoT). Lantronix solutions have applications across many industries including, security, industrial and building automation, transportation, energy, retail, financial, government, consumer electronics, medical and information technology. Founded in 1989, Lantronix is headquartered in Irvine, California. For more information, visit www.lantronix.com or follow us at www.twitter.com/Lantronix.
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. 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. Management believes that non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share are important measures of the Company’s business. 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.
Non-GAAP operating expenses consist of operating expenses excluding (i) share-based compensation and related payroll taxes and (ii) depreciation and amortization.
Non-GAAP net income (loss) consists of net income (loss) excluding (i) non-GAAP adjustments to operating expenses, (ii) interest income (expense), (iii) other income (expense), and (iv) income tax provision (benefit).
Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP net income (loss) per share, 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.
This news release contains forward-looking statements, including statements concerning our business plans, our financial and operating results, and our product development strategies. 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. Some of the risks and uncertainties that may cause actual results to differ from those expressed or implied in the forward-looking statements are described in “Risk Factors” in our Annual Report on Form 10-K and our Form 10-Qs filed with the Securities and Exchange Commission, or SEC, as well as in our other 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.
© 2014 Lantronix, Inc. Lantronix, xPico, XPort and xPrintServer are registered trademarks of Lantronix, Inc. All other trademarks and trade names are the property of their respective holders. Specifications subject to change without notice. All rights reserved.
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Investor Relations Contacts:
Chief Financial Officer
E.E. Wang Lukowski
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