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Lantronix, Inc. (LTRX - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 15 cents, meeting the Zacks Consensus Estimate. The bottom line increased 150% from the prior-year quarter's 6 cents.
Revenues in the quarter totaled $49.1 million, missing the consensus mark by just 0.1%. The top line, however, climbed 41% year over year, driven by strong momentum in the IoT System Solutions business amid a slowdown in the Embedded IoT Solutions and Software & Services businesses.
For fiscal 2024, revenues jumped 22% year over year to $160.3 million. Management noted healthy trends in its major markets - Smart Cities, Automotive and Enterprise. In the Enterprise vertical, the out-of-band management solutions business grew a solid 70% from fiscal 2023. In the Smart Cities market, the shipment of $21 million to a major smart grid client during the quarter was encouraging. For the fiscal first quarter, LTRX expects to ship products worth $5 million to this customer.
Following the earnings announcement, shares of LTRX gained 2.4% in the after-market trading on Sept. 5. In the past year, shares have lost 16.8% compared with the sub-industry’s decline of 13.1%.
Image Source: Zacks Investment Research
LTRX’s Fiscal Fourth Quarter in Details
IoT System Solutions revenues (contributed 72.5% to total revenues) in the reported quarter amounted to $35.6 million, rising 156% year over year. The uptick was driven by solid demand for out-of-band management products and an ongoing ramp-up of production shipments for a major smart grid client.
Embedded IoT Solutions revenues (contributed 23.2% to total revenues) in the reported quarter totaled $11.4 million, plunging 40% year over year.
Software & Services revenues (4.3%) were down 3.2% year over year to $2.1 million.
Revenues from the Americas, Europe, Middle East, and Africa region and the Asia Pacific and Japan region were $17.1 million, $26.2 million and $5.8 million, respectively, contributing 34.9%, 53.4% and 11.7% of total revenues.
Non-GAAP gross margin was 38.8%, down from 39.9% in the prior-ago quarter. The downtick was mainly due to charges on the buildup of excess inventory costs. For the fiscal first quarter of 2025, LTRX does not expect to incur such charges and anticipates the margin to grow in the low to mid-40s range driven by product mix strategies.
Total operating expenses for the quarter were $18.2 million, up from $14.6 million in the year-ago quarter. It projects a sequential decline in non-GAAP operating expenses of continued cost containment and lower variable compensation in the next quarter.
Cash Flow & Liquidity
In the quarter under review, LTRX generated $18.6 million of cash from operating activities. As of June 30, 2024, the company had $26.2 million in cash and cash equivalents and $13.2 in net long-term debt compared with $13.5 million and $16.2 million as of June 30, 2024, respectively.
Outlook
For the first quarter of fiscal 2025, management projects revenues between $34 million to $38 million. Non-GAAP EPS is expected in the range of 7-11 cents.
BlackBerry’s (BB - Free Report) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 50.9% in the past year.
Badger Meter, Inc. (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 18.3% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
Shares of SAP have gained 51.9% in the past year.
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Lantronix's Q4 Earnings Meet, Revenues Increase Y/Y, Stock Gains
Lantronix, Inc. (LTRX - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 15 cents, meeting the Zacks Consensus Estimate. The bottom line increased 150% from the prior-year quarter's 6 cents.
Revenues in the quarter totaled $49.1 million, missing the consensus mark by just 0.1%. The top line, however, climbed 41% year over year, driven by strong momentum in the IoT System Solutions business amid a slowdown in the Embedded IoT Solutions and Software & Services businesses.
For fiscal 2024, revenues jumped 22% year over year to $160.3 million. Management noted healthy trends in its major markets - Smart Cities, Automotive and Enterprise. In the Enterprise vertical, the out-of-band management solutions business grew a solid 70% from fiscal 2023. In the Smart Cities market, the shipment of $21 million to a major smart grid client during the quarter was encouraging. For the fiscal first quarter, LTRX expects to ship products worth $5 million to this customer.
Following the earnings announcement, shares of LTRX gained 2.4% in the after-market trading on Sept. 5. In the past year, shares have lost 16.8% compared with the sub-industry’s decline of 13.1%.
Image Source: Zacks Investment Research
LTRX’s Fiscal Fourth Quarter in Details
IoT System Solutions revenues (contributed 72.5% to total revenues) in the reported quarter amounted to $35.6 million, rising 156% year over year. The uptick was driven by solid demand for out-of-band management products and an ongoing ramp-up of production shipments for a major smart grid client.
Embedded IoT Solutions revenues (contributed 23.2% to total revenues) in the reported quarter totaled $11.4 million, plunging 40% year over year.
Software & Services revenues (4.3%) were down 3.2% year over year to $2.1 million.
Lantronix, Inc. Price, Consensus and EPS Surprise
Lantronix, Inc. price-consensus-eps-surprise-chart | Lantronix, Inc. Quote
Revenues from the Americas, Europe, Middle East, and Africa region and the Asia Pacific and Japan region were $17.1 million, $26.2 million and $5.8 million, respectively, contributing 34.9%, 53.4% and 11.7% of total revenues.
Non-GAAP gross margin was 38.8%, down from 39.9% in the prior-ago quarter. The downtick was mainly due to charges on the buildup of excess inventory costs. For the fiscal first quarter of 2025, LTRX does not expect to incur such charges and anticipates the margin to grow in the low to mid-40s range driven by product mix strategies.
Total operating expenses for the quarter were $18.2 million, up from $14.6 million in the year-ago quarter. It projects a sequential decline in non-GAAP operating expenses of continued cost containment and lower variable compensation in the next quarter.
Cash Flow & Liquidity
In the quarter under review, LTRX generated $18.6 million of cash from operating activities. As of June 30, 2024, the company had $26.2 million in cash and cash equivalents and $13.2 in net long-term debt compared with $13.5 million and $16.2 million as of June 30, 2024, respectively.
Outlook
For the first quarter of fiscal 2025, management projects revenues between $34 million to $38 million. Non-GAAP EPS is expected in the range of 7-11 cents.
LTRX’s Zacks Rank
LTRX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Companies
BlackBerry’s (BB - Free Report) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 50.9% in the past year.
Badger Meter, Inc. (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 18.3% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
Shares of SAP have gained 51.9% in the past year.