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Lantronix (LTRX) 7 Nov 24 2025 Q1 Earnings call transcript

AInvestFriday, Nov 8, 2024 3:12 am ET
1min read

In the first quarter of fiscal 2025, Lantronix reported a revenue of $34.4 million, marking a 4% increase from the previous year. The company's non-GAAP EPS for the quarter was $0.06. During the earnings call, CEO Saleel Awsare and CFO Brent Stringham provided updates on key strategic initiatives and financial performance.

Acquisition of NetComm's IoT Product Line

Lantronix announced the acquisition of NetComm's IoT product line for $6.5 million in cash, which strengthens Lantronix's Connect offerings and enhances its Edge Compute solutions. The acquisition is expected to contribute approximately $6 million to $7 million in revenue for the remainder of fiscal 2024 and will be immediately accretive to EPS. The deal, subject to customary closing conditions, is expected to close in November 2024.

Progress in Edge AI Collaboration with Qualcomm

Lantronix is collaborating with Qualcomm on AI and Machine Learning, with a focus on optimizing Qualcomm's AI hub toolkit to manage complex AI workflows. This collaboration has led to the launch of the SmartLV Gateway, a low-voltage substation solution designed for smart grids and industrial applications. Lantronix expects to see significant momentum in the Edge AI ecosystem in 2026 and beyond.

Financial Performance and Outlook

For fiscal Q2 2025, Lantronix anticipates revenue in the range of $29 million to $33 million, with non-GAAP EPS projected to be between $0.01 and $0.05 per share. The company is also streamlining its product portfolio and site consolidation, aiming to reduce operating expenses by approximately $4.5 million for fiscal 2025.

Investor Questions

During the Q&A session, investors inquired about the company's federal projects, smart grid opportunities, and the acquisition of NetComm's IoT product line. Saleel Awsare provided updates on these topics, highlighting the potential for growth in smart grids and the strategic fit of the NetComm acquisition.

Overall, Lantronix's earnings call presented a positive outlook, with strategic acquisitions and technological innovations positioning the company for future growth. The company's focus on Edge AI, IoT, and operational efficiency is expected to drive profitability and enhance its competitive position in the market.

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