• Lantronix Reports Results for Third Quarter of Fiscal 2023

    المصدر: Nasdaq GlobeNewswire / 10 مايو 2023 15:05:02   America/Chicago

    • Third Quarter Net Revenue of $33.0 Million, Up 5 Percent Sequentially and 2 Percent Year over Year
    • Third Quarter GAAP EPS of ($0.08) vs. ($0.09) in the Prior Year
    • Third Quarter Non-GAAP EPS of $0.06 vs. $0.08 in the Prior Year

    IRVINE, Calif., May 10, 2023 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global provider of secure turnkey solutions for the Industrial Internet of Things (IoT) and the Intelligent IT market, today reported results for its third quarter of fiscal 2023.

    Net revenue totaled $33.0 million, up five percent sequentially and two percent year over year.

    GAAP EPS of ($0.08), compared to ($0.09) in the prior year and ($0.07) in the prior quarter.

    Non-GAAP EPS of $0.06, compared to $0.08 in the prior year and $0.04 in the prior quarter.

    Business Outlook

    The company currently expects fourth quarter fiscal year 2023 revenues in a range of $33 to $36 million and non-GAAP EPS in a range of $0.06 to $0.08 per share.  For fiscal year 2024, the company expects revenue in a range of $175 to $185 million and non-GAAP EPS in a range of $0.50 to $0.60 per share.

    Conference Call and Webcast

    Lantronix will host an investor conference call and audio webcast on Wednesday, May 10, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its results for the third quarter of fiscal 2023 that ended March 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 Q3 FY 2023 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 May 10, 2023, at the Lantronix website. A telephonic replay will also be available through May 17, 2023, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) and entering passcode 8176277.

    About Lantronix

    Lantronix Inc. is a global provider of secure turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), offering Software as a Service (SaaS), connectivity services, engineering services and intelligent hardware.

    Lantronix enables its customers to accelerate time to market and increase operational up-time and efficiency by providing reliable, secure and connected Intelligent Edge IoT and Remote Management Gateway solutions.

    Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT and IT projects across Robotics, Automotive, Wearables, Video Conferencing, Industrial, Medical, Logistics, Smart Cities, Security, Retail, Branch Office, Server Room, and Datacenter applications. For more information, visit the Lantronix website.

    Learn more at the Lantronix blog, which features industry discussion and updates. Follow Lantronix on Twitter, view our YouTube video library or connect with us on LinkedIn.

    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 fiscal 2023. 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, failure by the United States Government to resolve the debt ceiling issue, issues relating to the stability of the Company’s financial and banking institutions, or market instability on our business, including effects on purchasing decisions by our customers; our ability to successfully convert our backlog and current demand;  the impact of the COVID-19 pandemic, including the emergence of new more contagious and/or vaccine-resistant strains of the virus and the impact of vaccination efforts, including the efficacy and public acceptance of vaccinations, on our business, employees, supply and distribution chains and the global economy; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic, the war between Ukraine and Russia or other causes; 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; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; 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, 2022, filed with the Securities and Exchange Commission (the “SEC”) on Aug. 29, 2022, 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 December 31, 2022, filed with the SEC on February 9, 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.

    © 2023 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark.

    Lantronix Investor Relations Contact:        
    Jeremy Whitaker
    Chief Financial Officer
    investors@lantronix.com

     
    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
         
      March 31, June 30,
      2023 2022
    Assets    
    Current assets:    
    Cash and cash equivalents $12,795  $17,221 
    Accounts receivable, net  25,609   26,262 
    Inventories, net  51,725   37,679 
    Contract manufacturers' receivables  2,315   3,454 
    Prepaid expenses and other current assets  3,445   5,417 
    Total current assets  95,889   90,033 
    Property and equipment, net  4,813   3,652 
    Goodwill  27,858   20,768 
    Purchased intangible assets, net  12,029   14,559 
    Lease right-of-use assets  10,413   8,037 
    Other assets  485   325 
    Total assets $151,487  $137,374 
         
    Liabilities and stockholders' equity    
    Current liabilities:    
    Accounts payable $15,189  $20,644 
    Line of credit  -   - 
    Accrued payroll and related expenses  3,073   4,729 
    Current portion of long-term debt, net  2,484   1,671 
    Other current liabilities  25,206   8,477 
    Total current liabilities  45,952   35,521 
    Long-term debt, net  16,972   14,274 
    Other non-current liabilities  10,535   7,683 
    Total liabilities  73,459   57,478 
         
    Commitments and contingencies    
         
    Stockholders' equity:    
    Common stock  4   4 
    Additional paid-in capital  294,505   289,046 
    Accumulated deficit  (216,852)  (209,525)
    Accumulated other comprehensive income  371   371 
    Total stockholders' equity  78,028   79,896 
    Total liabilities and stockholders' equity $151,487  $137,374 
         


     
    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
               
               
      Three Months Ended Nine Months Ended
      March 31, December 31,
     March 31, March 31,
      2023 2022 2022 2023 2022
    Net revenue $32,964  $31,506  $32,324  $96,265  $93,710 
    Cost of revenue  18,328   17,712   18,708   53,799   53,191 
    Gross profit  14,636   13,794   13,616   42,466   40,519 
    Operating expenses:          
    Selling, general and administrative  9,946   9,813   8,326   28,916   25,167 
    Research and development  5,067   5,084   4,483   14,677   12,834 
    Restructuring, severance and related charges  490   82   51   664   760 
    Acquisition-related costs  -   102   154   315   763 
    Fair value remeasurement of earnout consideration  140   (673)  1,203   (533)  2,462 
    Amortization of purchased intangible assets  1,424   1,497   1,479   4,340   4,112 
    Total operating expenses  17,067   15,905   15,696   48,379   46,098 
    Loss from operations  (2,431)  (2,111)  (2,080)  (5,913)  (5,579)
    Interest expense, net  (465)  (354)  (303)  (1,081)  (1,277)
    Loss on extinguishment of debt  -   -   (764)  -   (764)
    Other income (expense), net  (29)  (26)  32   (21)  (25)
    Income (loss) before income taxes  (2,925)  (2,491)  (3,115)  (7,015)  (7,645)
    Provision for income taxes  140   118   75   312   223 
    Net income (loss) $(3,065) $(2,609) $(3,190) $(7,327) $(7,868)
    Net income (loss) per share - basic and diluted $(0.08) $(0.07) $(0.09) $(0.20) $(0.25)
    Weighted-average common shares - basic and diluted  36,548   36,352   34,695   36,105   31,925 
               


     
    LANTRONIX, INC.
    UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
    (In thousands, except per share data)
               
      Three Months Ended Nine Months Ended
      March 31, December 31,
     March 31, March 31,
      2023 2022 2022 2023 2022
               
    GAAP net income (loss) $(3,065) $(2,609) $(3,190) $(7,327) $(7,868)
    Non-GAAP adjustments:          
    Cost of revenue:          
    Share-based compensation  47   61   80   159   280 
    Employer portion of withholding taxes on stock grants  1   -   1   13   9 
    Amortization of manufacturing profit in acquired inventory  77   80   -   181   380 
    Depreciation and amortization  116   118   161   364   425 
    Total adjustments to cost of revenue  241   259   242   717   1,094 
    Selling, general and administrative:          
    Share-based compensation  1,293   1,434   1,264   4,132   3,568 
    Employer portion of withholding taxes on stock grants  25   10   25   167   129 
    Depreciation and amortization  280   260   78   695   220 
    Total adjustments to selling, general and administrative  1,598   1,704   1,367   4,994   3,917 
    Research and development:          
    Share-based compensation  388   370   268   1,090   745 
    Employer portion of withholding taxes on stock grants  5   2   10   29   28 
    Depreciation and amortization  37   63   79   164   224 
    Total adjustments to research and development  430   435   357   1,283   997 
    Restructuring, severance and related charges  490   82   51   664   760 
    Acquisition related costs  -   102   154   315   763 
    Fair value remeasurement of earnout consideration  140   (673)  1,203   (533)  2,462 
    Loss on extinguishment of debt  -   -   764   -   764 
    Amortization of purchased intangible assets  1,424   1,497   1,479   4,340   4,112 
    Litigation settlement cost  250   80   -   330   - 
    Total non-GAAP adjustments to operating expenses  4,332   3,227   5,375   11,393   13,775 
    Interest expense, net  465   354   303   1,081   1,277 
    Other (income) expense, net  29   26   (32)  21   25 
    Provision (benefit) for income taxes  140   118   75   312   223 
    Total non-GAAP adjustments  5,207   3,984   5,963   13,524   16,394 
    Non-GAAP net income $2,142  $1,375  $2,773  $6,197  $8,526 
               
               
    Non-GAAP net income per share - diluted $0.06  $0.04  $0.08  $0.17  $0.25 
               
    Denominator for GAAP net income per share - diluted  36,548   36,352   34,695   36,105   31,925 
    Non-GAAP adjustment  839   819   1,992   1,066   1,967 
    Denominator for non-GAAP net income per share - diluted  37,387   37,171   36,687   37,171   33,892 
               


     
    LANTRONIX, INC.
    UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
    (In thousands)
              
     Three Months Ended Nine Months Ended
     March 31, 2023 December 31, 2022 March 31, 2022 March 31, 2023 March 31, 2022
    Embedded IoT Solutions$16,055 $13,668 $15,349 $44,818 $43,329
    IoT System Solutions 14,034  14,913  14,862  43,568  44,386
    Software & Services 2,875  2,925  2,113  7,879  5,995
     $32,964 $31,506 $32,324 $96,265 $93,710
              
              
     Three Months Ended Nine Months Ended
     March 31, 2023 December 31, 2022 March 31, 2022 March 31, 2023 March 31, 2022
    Americas$19,095 $19,688 $20,448 $59,713 $58,748
    EMEA 6,380  4,905  5,071  16,486  15,481
    Asia Pacific Japan 7,489  6,913  6,805  20,066  19,481
     $32,964 $31,506 $32,324 $96,265 $93,710
              

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