Lantronix Earnings Call Transcripts
Fiscal Year 2026
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The company has transformed into a solutions provider focused on Edge AI, expanding rapidly in drones, critical infrastructure, and robotics. Revenue from drones is set to double, ARR is growing, and new partnerships and verticals are driving future growth.
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Q2 revenue reached $29.8M with improved margins and profitability, driven by strong drone and Edge AI adoption. Fiscal 2026 drone revenue guidance was raised to $8M-$12M, with drones expected to comprise 15%-20% of revenue in 2027.
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Revenue and non-GAAP EPS reached the high end of guidance, driven by gross margin expansion and cost controls. Drone and asset monitoring businesses showed strong momentum, with new product launches and growing OEM engagements. Gross margin and sequential revenue growth are expected to remain strong.
Fiscal Year 2025
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Fiscal 2025 saw a return to core revenue growth, driven by edge IoT and defense wins, with Q4 revenue at $28.8M and non-GAAP EPS of $0.01. FY26 guidance projects higher margins and continued momentum in drones and telecom, supported by a stronger balance sheet.
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Q3 FY2025 revenue was $28.5M with non-GAAP EPS of $0.03, both within guidance. Gross margins improved year-over-year, cash position increased, and debt was reduced. FY2026 is expected to see double-digit growth, driven by new products, design wins, and channel expansion.
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Q2 FY2025 revenue was $31.2M with non-GAAP EPS of $0.04, both within guidance. Cost reductions and the NetComm acquisition support future growth, while edge AI and Out-of-Band Management are key focus areas. Gross margin and multi-year growth are expected to improve.
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Q1 FY2025 revenue grew 4% year-over-year to $34.4 million, with strong embedded IoT growth but sequential declines due to lower smart grid and federal orders. The NetComm IoT acquisition expands 5G offerings and is expected to be accretive, while operational streamlining aims to cut $4.5 million in expenses.
Fiscal Year 2024
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Record Q4 and fiscal 2024 revenue driven by strong growth in enterprise, smart cities, and automotive verticals. Gross margin impacted by inventory charges but expected to recover; Q1 2025 guidance anticipates sequential revenue decline due to shipment timing, with core business growth.
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Edge intelligence solutions are driving double-digit growth across smart cities, automotive, and enterprise verticals, with major partnerships and strategic acquisitions fueling expansion. Strong financial performance, a deep Qualcomm partnership, and an experienced leadership team position the company for continued success.