IRVINE, Calif., May 5, 2005 (PRIMEZONE) -- Lantronix, Inc. (Nasdaq:LTRX) today reported results for its third fiscal quarter and nine months ended March 31, 2005:
-- Revenues from continuing operations for the quarter ended
March 31, 2005 were $12.3 million, compared with $12.3 million
for the same period last year.
-- Revenues for the company's combined core business categories of
device networking and IT management solutions for the third
fiscal quarter were up 8.2% from the same period last year.
-- Gross profit from continuing operations was 46.2% for third
fiscal 2005 quarter, compared with 56.2% for the same period
last year.
-- Operating expenses were $6.9 million for the quarter ended
March 31, 2005 compared to $6.6 million for the same period
last year when the company recorded a reversal of $2.1 million
of expense related to the reduction of restructuring reserves
and compared to operating expenses of $8.3 million for the
quarter ended December 31, 2004.
-- Net loss from continuing operations for the three month period
ended March 31, 2005 was $(1.5) million, compared with net
income from continuing operations of $116,000 for the same period
last year and compared to $(1.7) million net loss for the three
month period ended December 31, 2004.
For the third fiscal quarter, Lantronix recorded revenues of $12.3 million and net loss from continuing operations of $(1.5) million, or $(0.03) per share, compared with revenues of $12.3 million and net income from continuing operations of $116,000, or $0.00 per share, for the same period last year, when the company recorded a reversal of $2.1 million of expense related to the reduction of restructuring reserves.
Revenues for the company's combined business categories of device networking and IT management were $10.8 million for the quarter ended March 31, 2005, compared with $10.0 million for the same period last year.
For the nine months ended March 31, 2005, Lantronix recorded revenues of $36.3 million and net loss from continuing operations of $(7.0) million, or $(0.12) per share, compared with revenues of $37.0 million and a net loss from continuing operations of $(3.7) million, or $(0.07) per share, for the same period last year. Revenues for the company's combined business categories of device networking and IT management for the nine-months ended March 31, 2005 were $31.5 million, up 5.6% from the same period last year, when the company reported $29.8 million.
"Despite March quarter seasonality and an industry-wide slowdown in IT purchasing, we achieved financial and operational improvements during the quarter," said Marc Nussbaum, chief executive officer and president. "Year-over-year we have grown our device networking business in six of the last seven quarters as the M2M market continues its expansion."
Cash, cash equivalents and marketable securities decreased approximately $1.6 million during the quarter ended March 31, 2005, compared with a decrease of $390,000 for the same period a year earlier.
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.
"This past quarter we achieved both the expense structure and cash margin target required by our cash breakeven business model. With continued growth in our core and our planned uses of cash, we expect to achieve cash breakeven in the fourth fiscal quarter of 2005," said Nussbaum.
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. For example, statements regarding our cash breakeven business model, potential growth opportunities and anticipated cash usage are forward-looking statements. Actual results and outcomes may differ materially from those discussed or anticipated. 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 Nine Months Ended
March 31, March 31,
2005 2004 2005 2004
------- ------- ------- -------
Net revenues $12,303 $12,310 $36,256 $37,009
Cost of revenues 6,614 5,393 18,754 18,292
------- ------- ------- -------
Gross profit 5,689 6,917 17,502 18,717
------- ------- ------- -------
Operating expenses:
Selling, general and
administrative 5,593 6,572 19,229 18,027
Research and development 1,293 2,042 5,013 5,587
Stock-based compensation 36 89 323 307
Amortization of purchased
intangible assets 15 29 63 118
Restructuring (recovery)
charges -- (2,098) -- (2,098)
------- ------- ------- -------
Total operating expenses 6,937 6,634 24,628 21,941
------- ------- ------- -------
Income (loss) from operations (1,248) 283 (7,126) (3,224)
Interest income, net 3 8 19 43
Other income (expense), net (193) (103) 349 (283)
------- ------- ------- -------
Income (loss) before
income taxes (1,438) 188 (6,758) (3,464)
Provision for income taxes 70 72 240 208
------- ------- ------- -------
Income (loss) from continuing
operations (1,508) 116 (6,998) (3,672)
Income (loss) from
discontinued operations -- (669) 56 (5,185)
------- ------- ------- -------
Net loss $(1,508) $ (553) $(6,942) $(8,857)
Basic and diluted net loss
per share
Loss from continuing
operations $ (0.03) $ -- $ (0.12) $ (0.07)
Income (loss) from
discontinuing operations -- (0.01) -- (0.09)
------- ------- ------- -------
Basic and diluted net loss
per share $ (0.03) $ (0.01) $ (0.12) $ (0.16)
======= ======= ======= =======
Weighted average shares
(basic and diluted) 58,642 57,295 58,381 56,236
======= ======= ======= =======
SELECTED CONSOLIDATED BALANCE SHEET DATA
(In thousands)
March 31, June 30,
2005 2004
(Unaudited)
-------- --------
Cash and cash equivalents $ 6,610 $ 9,128
Marketable securities -- 3,050
Accounts receivable, net 2,650 3,242
Inventories 6,496 6,677
Goodwill 9,488 9,488
Purchased intangible assets, net 900 2,056
Total assets 29,496 37,250
Accumulated deficit (163,020) (156,078)
Total stockholders' equity 18,642 24,791