LANTRONIX INC
For the period ended May 6, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A notice of a major event between regular reports, such as results, a deal or a change of executives. It is often the first formal record of the news.
May 6, 2026 · Filed May 6, 2026
Use the contents to explore the available documents and sections.
Contents
EX-99.2 · Brent Stringham:
Brent Stringham:
Thank you, Saleel.
I’ll first start with our fiscal third quarter financial results and some of the key drivers behind our performance. After which I’ll provide our outlook for the fourth quarter ending June 30, 2026.
As previously discussed, current quarter revenue was $30.2 million. We saw sequential and year-over-year growth driven by strength in embedded compute products, including our A&D and Drone programs, and continuing momentum in software and services revenues. Federal customers are moving cautiously, resulting in slower ordering patterns for our core enterprise and networking products. However, like Saleel mentioned, we believe these are primarily timing dynamics, not demand issues, and we should benefit once this market normalizes.
Turning to our gross margins…
In the third quarter, GAAP gross margin was 43.1%, roughly flat compared to a year ago. On a non-GAAP basis, gross margin was 43.6%, slightly down compared to a year ago. Our current quarter margins reflect the revenue mix we have spoken to, with embedded IoT solutions, particularly our compute products, driving our growth. We continue to remain focused on disciplined cost management that has driven our execution over the last year, which we expect to contribute to sustaining our gross margins near current levels.
Looking at expenses and profitability…
GAAP operating expenses in the third quarter of fiscal 2026 were $14.1 million, nearly flat with the prior quarter, and down approximately 12% from $16.0 million in the year-ago period. We continue to observe the leverage in our Opex model based on the actions we took last year, and the ongoing cost discipline that we are executing on.
GAAP net loss for the third quarter of fiscal 2026 improved to $1.2 million, or 3 cents per share, compared to GAAP net loss of $3.9 million, or 10 cents per share, in the year-ago quarter. On a non-GAAP basis, net income of $1.5 million, or 4 cents per share, was consistent with the prior quarter, and an improvement from the $0.03 per share in the year ago quarter.
Moving to the balance sheet…
| · | We ended the quarter with cash and cash equivalents of $23.5 million, an increase of approximately $500 thousand from the prior quarter and $3.5 million from the year-ago period. During the current quarter and fiscal year-to-date periods, we generated positive operating cash flow of nearly $2.2 million and $7.9 million, respectively. |
| · | Net inventories were $26.4 million as of March 31, 2026, compared to $27.1 million last quarter and $28.2 million in the year-ago quarter. |
| · | Our current debt balance is $8.7 million, after having paid down about another $1 million during the current quarter. In the last 12 months we have lowered our debt balance by nearly $4 million. Our net cash position on March 31, 2026 was approximately $14.8 million. |
Lastly, our outlook for the fourth quarter of fiscal 2026 ending June 30, 2026 is as follows:
| · | We expect revenue to be in the range of $29 million to $33 million. |
| · | Non-GAAP EPS is expected to be in the range of 3 to 5 cents per share. |
Now back to Saleel for some closing remarks.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.