IRVINE, Calif., Jan. 25, 2018 (GLOBE NEWSWIRE) -- 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 second fiscal quarter ended December 31, 2017.
Financial Highlights for Second Quarter of Fiscal 2018
Net revenue of $11.3 million
Gross profit margin of 55.7%, compared with 51.8% for the second quarter of fiscal 2017
GAAP net income of $225,000 or $0.01 per share compared with GAAP net income of $41,000, or $0.00 per share for the second quarter of fiscal 2017
Non-GAAP net income of $689,000, compared with non-GAAP income of $444,000 for the second quarter of fiscal 2017, up 55% year over year
Cash and cash equivalents increased to $8.4 million
8th consecutive quarter of non-GAAP profitability
Record sales of Lantronix SLB™ Branch Office Manager contributed to 42% year-over-year growth in IT Management product line
Operational and Product Highlights
Most recently, the company was recognized by CRN® in its 2017 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.
In December, the company announced the launch of its xPico® 200 family of embedded IoT gateways, delivering robust Ethernet, Wi-Fi and Bluetooth connectivity, enterprise-grade security, and integrated manageability features ideal for industrial IoT applications.
In November, the company announced that it had reached a favorable settlement in the patent infringement lawsuit filed against Jinan USR IOT Technology, Limited., which enforced Lantronix United States patents covering the XPort® family of Serial-to-Ethernet conversion products.
In October, the company announced the launch of MACH10® Global Device Manager, the first product offering based on its MACH10 technology platform. MACH10® Global Device Manager is a ready-to-use industrial IoT application designed to enable OEMs and system integrators to deploy lifecycle management for their connected devices at scale.
In October, Lantronix joined the National Association of Software and Service Companies (NASSCOM®), an India-based industry association, to promote the development and deployment of innovative Lantronix end-to-end IoT solutions to the India market.
During the quarter, the company received initial orders for SGX™ 5150 IoT Device Gateways from one of its strategic OEM customers in the medical segment to support their initial production ramp
“I am very pleased with our second quarter results and the momentum we carry into the second half of our fiscal year,” said Jeff Benck, Lantronix CEO. “With revenue above $11 million and continued improvement in gross margins we were able to demonstrate the leverage that exists in our business model by achieving non-GAAP net income of 6% of revenue.”
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 second fiscal quarter ended December 31, 2017. 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 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 February 1, 2018 by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) and entering passcode 10115345.
About Lantronix 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 our 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.
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) non-GAAP adjustments to operating expenses, (ii) interest income (expense), (iii) other income (expense), (iv) income tax provision (benefit), and (v) severance and restructuring charges.
Forward-Looking Statements
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: Jeremy Whitaker Chief Financial Officer 949-453-3990
