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CST: 14/12/2019 03:52:06   

Lantronix Reports Second Quarter Fiscal 2019 Net Revenue of $12.1M

323 Days ago

Achieves 11% Revenue Growth for First Half Fiscal 2019

IRVINE, Calif., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Lantronix, Inc. (NASDAQ: LTRX), a global provider of secure data access and management solutions for the industrial Internet of Things (IoT) today reported results for the second quarter fiscal 2019 that ended December 31, 2018.

Financial Highlights for Second Quarter of Fiscal 2019

  • Net revenue of $12.1 million, an increase of 7% from the second quarter of fiscal 2018
  • Gross profit margin of 55.0%, compared with 55.7% for the second quarter of fiscal 2018
  • GAAP net income of $277,000, or $0.01 per share, compared to GAAP net income of $225,000, or $0.01 per share for the second quarter of fiscal 2018, an increase in earnings of 23%
  • Non-GAAP net income of $790,000, or $0.03 per share, compared to non-GAAP net income of $689,000, or $0.04 per share for the second quarter of fiscal 2018, an increase in earnings of 15%
  • Cash and cash equivalents increased to $19.4 million

Operational and Product Highlights

  • In October, the company announced the new ConsoleFlow™ Cloud Edition, the industry’s only centralized out-of-band management software that provides VPN-free access to console managers and IT equipment
  • In November, the company announced the general availability of XPort® EDGE, the first embedded Ethernet gateway offering in the market-leading XPort family of serial to Ethernet device servers
  • In November, the company also announced the introduction of SGX 5150-MD IoT gateway to accelerate secure IoT connectivity and management for medical devices
  • Most recently, in January, Lantronix CEO, Jeff Benck, was recognized by IoT Breakthrough Awards program as the “CEO of the Year”

“I am pleased with our second quarter results and that we met our revenue guidance for the first half by delivering double digit organic top-line growth,” said Jeff Benck, Lantronix CEO.  “We continued to generate cash and earnings while increasing our investment in new products and building out our go to market teams.  The new products we introduced in the first half, coupled with our solid IoT design win pipeline, bode well for our long-term growth prospects.” 

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 quarter of fiscal 2019 that ended December 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 Q2 FY 2019 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 24, 2019 by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) and entering passcode 10127701.

About Lantronix 
Lantronix, Inc. is a global provider of secure data access and management solutions for the 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 is headquartered in Irvine, California. For more information, visit www.lantronix.com. Learn more on 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.

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.

Lantronix Investor Relations Contact:  
Shahram Mehraban
VP, Marketing
investors@lantronix.com
949-453-7175

© 2019 Lantronix, Inc. All rights reserved. Lantronix and XPort are registered trademarks, and ConsoleFlow is a trademark, of Lantronix, Inc.

 
LANTRONIX, INC.  
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
  (In thousands)  
 
    December 31,   June 30,
    2018   2018
Assets        
Current assets:        
Cash and cash equivalents   $ 19,367     $ 9,568  
Accounts receivable, net     6,134       4,244  
Inventories, net     9,352       8,439  
Contract manufacturers' receivable     419       649  
Prepaid expenses and other current assets     752       370  
Total current assets     36,024       23,270  
Property and equipment, net     1,184       1,036  
Goodwill     9,488       9,488  
Other assets     55       61  
Total assets   $ 46,751     $ 33,855  
         
Liabilities and stockholders' equity        
Current liabilities:        
Accounts payable   $ 4,317     $ 3,942  
Accrued payroll and related expenses     2,731       2,808  
Warranty reserve     106       99  
Other current liabilities     3,325       2,877  
Total current liabilities     10,479       9,726  
Other non-current liabilities     256       316  
Total liabilities     10,735       10,042  
         
Commitments and contingencies        
         
Stockholders' equity:        
Common stock     2       2  
Additional paid-in capital     224,422       212,995  
Accumulated deficit     (188,779 )     (189,555 )
Accumulated other comprehensive income     371       371  
Total stockholders' equity     36,016       23,813  
Total liabilities and stockholders' equity   $ 46,751     $ 33,855  
         

 

 
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,    
      2018   2018   2017   2018   2017
Net revenue   $ 12,114   $ 12,279     $ 11,336     $ 24,393     $ 21,942  
Cost of revenue     5,453     5,538       5,022       10,991       10,034  
Gross profit     6,661     6,741       6,314       13,402       11,908  
Operating expenses:                    
Selling, general and administrative     4,159     4,472       4,173       8,631       8,159  
Research and development     2,279     2,298       1,874       4,577       4,095  
Total operating expenses     6,438     6,770       6,047       13,208       12,254  
Income (loss) from operations     223     (29 )     267       194       (346 )
Interest income (expense), net     60     (4 )     (5 )     56       (9 )
Other income (expense), net     8     (10 )     1       (2 )     2  
Income (loss) before income taxes     291     (43 )     263       248       (353 )
Provision for income taxes     14     40       38       54       63  
Net income (loss)   $ 277   $ (83 )   $ 225     $ 194     $ (416 )
Net income (loss) per share -basic   $ 0.01   $ (0.00 )   $ 0.01     $ 0.01     $ (0.02 )
Net income (loss) per share - diluted   $ 0.01   $ (0.00 )   $ 0.01     $ 0.01     $ (0.02 )
Weighted-average common shares - basic     22,091     19,323       18,073       20,721       17,970  
Weighted-average common shares - diluted     23,442     19,323       18,739       22,263       17,970  
                     

 

 
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,    
    2018   2018   2017   2018   2017
                     
GAAP net income (loss)   $ 277     $ (83 )   $ 225     $ 194     $ (416 )
Non-GAAP adjustments:                    
Cost of revenue:                    
Share-based compensation     23       17       13       40       26  
Depreciation and amortization     45       48       53       93       115  
Total adjustments to cost of revenue     68       65       66       133       141  
Selling, general and administrative:                    
Share-based compensation     337       400       239       737       451  
Employer portion of withholding taxes on stock grants     2       6       3       8       5  
Depreciation and amortization     48       46       46       94       91  
Total adjustments to selling, general and administrative     387       452       288       839       547  
Research and development:                    
Share-based compensation     91       61       58       152       105  
Employer portion of withholding taxes on stock grants     -       -       -       -       1  
Depreciation and amortization     21       11       10       32       20  
Total adjustments to research and development     112       72       68       184       126  
Severance and related charges     -       323       -       323       527  
Total non-GAAP adjustments to operating expenses     499       847       356       1,346       1,200  
Interest (income) expense, net     (60 )     4       5       (56 )     9  
Other (income) expense, net     (8 )     10       (1 )     2       (2 )
Provision for income taxes     14       40       38       54       63  
Total non-GAAP adjustments     513       966       464       1,479       1,411  
Non-GAAP net income   $ 790     $ 883     $ 689     $ 1,673     $ 995  
                     
                     
Non-GAAP net income per share - diluted   $ 0.03     $ 0.04     $ 0.04     $ 0.07     $ 0.05  
                     
Denominator for GAAP net income (loss) per share - diluted     23,442       19,323       18,739       22,263       17,970  
Non-GAAP adjustment     824       2,472       569       701       1,382  
Denominator for non-GAAP net income per share - diluted     24,266       21,795       19,308       22,964       19,352  
                     
GAAP operating expenses   $ 6,438     $ 6,770     $ 6,047     $ 13,208     $ 12,254  
Non-GAAP adjustments to operating expenses     (499 )     (847 )     (356 )     (1,346 )     (1,200 )
Non-GAAP operating expenses   $ 5,939     $ 5,923     $ 5,691     $ 11,862     $ 11,054  
                     

 

 
LANTRONIX, INC.
UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
(In thousands)
                   
    Three Months Ended       Six Months Ended  
  December 31,
2018
  September 30,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
IoT $ 9,070   $ 8,967   $ 7,961   $ 18,037   $ 16,419
IT Management   2,888     3,101     3,218     5,989     5,007
Other   156     211     157     367     516
  $ 12,114   $ 12,279   $ 11,336   $ 24,393   $ 21,942
                     
                 
    Three Months Ended       Six Months Ended  
  December 31,
2018
  September 30,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Americas $ 6,182   $ 6,914   $ 6,292   $ 13,096   $ 11,989
EMEA   4,080     3,520     3,172     7,600     6,336
Asia Pacific Japan   1,852     1,845     1,872     3,697     3,617
  $ 12,114   $ 12,279   $ 11,336   $ 24,393   $ 21,942
                     

 

 

 

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