IRVINE, Calif., Feb. 10, 2005 (PRIMEZONE) -- Lantronix, Inc. (Nasdaq:LTRX) today reported results for its second fiscal quarter and six months ended December 31, 2004:
-- Revenues from continuing operations for the quarter ended
December 31, 2004 were $12.9 million, compared with $12.5 million
for the same period last year, exceeding earlier guidance of
$12.7-$12.8 million in revenues.
-- Net loss for the quarter ended December 31, 2004 was $(1.7)
million, or $(0.03) per share, compared with net loss of $(5.3)
million, or $(0.09) per share for the same period last year.
-- Gross profit from continuing operations was 48.5% for the second
fiscal 2005 quarter, compared with 45.2% for the same period last
year.
-- Revenues for the company's device networking and IT management
solutions core business segments for the second fiscal quarter
were up 11% from the same period last year and were up 22% from
the prior consecutive quarter.
For the second fiscal quarter, Lantronix recorded revenues of $12.9 million and net loss of $(1.7) million, or $(0.03) per share, compared with revenues of $12.5 million and a net loss of $(5.3) million, or $(0.09) per share, for the same period last year.
Revenues in the company's Device Networking and IT Management business segments for the quarter ended December 31, 2004 were $11.4 million, compared with $10.3 million for the same period last year and $9.3 million for the prior quarter ended September 30, 2004.
For the six months ended December 31, 2004, Lantronix recorded revenues of $24.0 million and a net loss of $(5.4) million, or $(0.09) per share, compared with revenues of $24.7 million and a net loss of $(8.3) million, or $(0.15) per share, for the same period last year.
"Orders in the December quarter were strong. We view our results as a turning point in the company's recent operating history as the improvement in our core business over the last seven quarters has begun to drive growth in our overall top-line revenue," said Marc Nussbaum, chief executive officer and president.
Cash, cash equivalents and marketable securities decreased approximately $1.0 million during the quarter ended December 31, 2004, compared with a decrease of $3.0 million for the quarter ended September 30, 2004.
FISCAL 2005 QUARTER OUTLOOK
The following statements are forward-looking and are based on current expectations. Statements about future revenues, product successes or sales, or cash usage are subject to variations in any specific period. Actual results may differ materially from those described below. The company undertakes no obligation to update this release.
"Based on growth in our core business and recent expense reduction actions, we continue to drive to cash breakeven by the end of our fiscal year in June," said Marc Nussbaum, chief executive officer and president.
The company expects to use approximately $1.5 million in cash for the quarter ending March 31, 2005, partially as a result of severance, office closing and other costs related to expense reduction actions.
About Lantronix
Lantronix, Inc. (NASDAQ: LTRX) provides technology solutions that deliver Net Intelligence, helping businesses remotely manage network infrastructure equipment and rapidly network-enable their physical electronic devices. Lantronix connectivity solutions securely link a company's electronic assets through the network, allow access to business-critical data within each device and convert that data into actionable information. With this new intelligence, companies can achieve greater efficiencies, reduce resource consumption and proactively transform the way they do business. The leader in device networking and secure remote management solutions, Lantronix was founded in 1989 and has its worldwide headquarters in Irvine, California. For more information, visit www.lantronix.com.
This news release contains forward-looking statements that involve risks and uncertainties, including statements regarding our cash usage, potential for achieving cash breakeven, and the future performance of our business generally are forward-looking statements. Actual results and outcomes may differ materially from those discussed or anticipated. For example, our cost reduction strategies could be less effective than expected and the cost of operating our business, including the cost of on-going litigation and Sarbanes-Oxley compliance could be greater than expected. Other factors that might affect actual outcomes include, but are not limited to market acceptance of Lantronix products by our customers, future revenues, future margins, cash usage, cash breakeven revenue levels, and financial performance. For a more detailed discussion of these and associated risks, see the Company's most recent documents filed with the Securities and Exchange Commission.
Lantronix is a registered trademark of Lantronix, Inc. All other trademarks are properties of their respective owners.
SELECTED UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
2004 2003 2004 2003
------- ------- ------- -------
Net revenues $12,908 $12,498 $23,953 $24,699
Cost of revenues 6,652 6,854 12,140 12,899
------- ------- ------- -------
Gross profit 6,256 5,644 11,813 11,800
------- ------- ------- -------
Operating expenses:
Selling, general and
administrative 6,732 5,192 13,636 11,455
Research and development 1,423 1,758 3,720 3,545
Stock-based compensation 107 63 287 218
Amortization of purchased
intangible assets 19 45 48 89
------- ------- ------- -------
Total operating expenses 8,281 7,058 17,691 15,307
------- ------- ------- -------
Loss from operations (2,025) (1,414) (5,878) (3,507)
Interest income, net 7 11 16 35
Other income (expense), net 472 (10) 542 (180)
------- ------- ------- -------
Loss before income taxes (1,546) (1,413) (5,320) (3,652)
Provision for income taxes 109 103 170 136
------- ------- ------- -------
Loss from continuing
operations (1,655) (1,516) (5,490) (3,788)
======= ======= ======= =======
Income (loss) from dis-
continued operations -- (3,739) 56 (4,516)
------- ------- ------- -------
Net loss (1,655) (5,255) (5,434) (8,304)
======= ======= ======= =======
Basic and diluted net loss
per share
Loss from continuing
operations $ (0.03) $ (0.03) $ (0.09) $ (0.07)
Income (loss) from
discontinuing operations $ -- $ (0.06) $ 0.00 $ (0.08)
Basic and diluted net loss
per share $ (0.03) $ (0.09) $ (0.09) $ (0.15)
Weighted average shares
(basic and diluted) 58,149 57,098 58,033 55,693
======= ======= ======= =======
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
December 31, June 30,
2004 2004
(Unaudited)
--------- ---------
Cash and cash equivalents $ 7,606 $ 9,128
Marketable securities 625 3,050
Accounts receivable, net 3,591 3,242
Inventories 6,115 6,677
Goodwill 9,488 9,488
Purchased intangible assets, net 1,279 2,056
Total assets 32,829 37,250
Accumulated deficit (161,512) (156,078)
Total stockholders' equity 20,083 24,791