Lantronix Reports Third Quarter Fiscal 2018 Net Revenue of $11.6 Million
–Achieves $0.02 GAAP Earnings per Share–
Irvine, Calif., April 26, 2018 – Lantronix, Inc. (NASDAQ: LTRX) a global provider of secure data access and management solutions for Internet of Things (IoT) assets, today reported results for the third fiscal quarter ended March 31, 2018.
Financial Highlights for Third Quarter of Fiscal 2018
- Net revenue increased to $11.6 million with 16% quarter-over-quarter growth in IoT product line
- Gross profit margin of 56.8%, compared with 55.5% for the third quarter of fiscal 2017
- GAAP net income of $344,000 or $0.02 per share compared with GAAP net loss of $162,000, or ($0.01) per share for the third quarter of fiscal 2017
- Non-GAAP net income of $767,000, compared with non-GAAP net income of $484,000 for the third quarter of fiscal 2017
- Cash and cash equivalents increased to $9.0 million
- 2nd consecutive quarter of GAAP profitability and 9th consecutive quarter of non-GAAP profitability
Operational and Product Highlights
- Most recently, the Company was recognized, for a second year in a row, by CRN® in its 2018 Internet of Things 50 list, which recognizes companies whose innovative offerings are helping connect objects, computing devices, infrastructure, data storage and data analytics that will transform our everyday lives.
- Earlier this month, the Company announced the sampling of its XPort® Edge wired Ethernet gateway, with a patented design that delivers a highly differentiated set of capabilities for quickly adding secure Ethernet connectivity to any device with a serial interface.
- In February, the Company announced the availability of xPico® 250 embedded wireless gateway, and the new Lantronix Gateway Central device management SaaS offering powered by MACH10® which enables device manufacturers, system integrators, solution providers, and end users to provision and manage Lantronix IoT gateways quickly and securely.
- In January, the Company announced a first-of-its-kind real-time network performance monitoring capability for its SLC™ 8000 Console Management Family.
“We put up another solid quarter of results and continued to improve our profitability,” said Jeff Benck, Lantronix CEO. “We are demonstrating the leverage in our OEM business model as we grew our top line while tightly managing expenses and this yielded significant year over year earnings growth. We also announced a number of new IoT products in the quarter that will contribute to our top line growth in the coming quarters.”
Conference Call and Webcast
Lantronix will host an investor conference call and audio webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its results for the third quarter ended March 31, 2018. 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 Q3 FY 2018 call. The webcast will be available simultaneously via the investor relations section of the Company’s website at www.lantronix.com.
Investors can access a replay of the conference call starting at approximately 5:00 p.m. Pacific Time today at www.lantronix.com. A telephonic replay will also be available through May 3, 2018 by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) and entering passcode 10119123.
Lantronix, Inc. is a global provider of secure data access and management solutions for Internet of Things (IoT) assets. Our mission is to be the leading supplier of IoT solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for applications and people.
With more than two decades of experience in creating robust machine to machine (M2M) technologies, Lantronix is an innovator in enabling its customers to build new business models and realize the possibilities of the Internet of Things. Our connectivity solutions are deployed inside millions of machines serving a wide range of industries, including industrial, medical, security, transportation, retail, financial, environmental and government.
For more information, visit www.lantronix.com.
Learn more at the Lantronix blog, www.lantronix.com/blog, featuring industry discussion and updates. To follow Lantronix on Twitter, please visit www.twitter.com/Lantronix. View our video library on YouTube at www.youtube.com/user/LantronixInc or connect with us on LinkedIn at www.linkedin.com/company/lantronix.
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 (loss) consists of net income (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), and (vi) severance and restructuring charges.
This news release contains forward-looking statements, including statements concerning our sales expansion efforts, our product development efforts, and our projected operating and financial performance. 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. 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 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.
Investor Relations Contacts:
Chief Financial Officer
© 2018 Lantronix, Inc. All rights reserved. Lantronix, MACH10, xPico and XPort are registered trademarks, and SGX and SLB are trademarks, of Lantronix, Inc. All other trademarks and trade names are the property of their respective holders.