Fri, May 9, 12:38 PM (40 days ago)
**Lantronix, Inc. (LTRX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $28.5 million, down 30.8% YoY from $41.2 million in Q1 2024. - **Net Loss:** Q1 2025 net loss was $3.9 million, compared to a net loss of $0.4 million in Q1 2024. - **Gross Margin:** Gross margin increased to 43.5% in Q1 2025 from 40.1% in Q1 2024. - **Operating Expenses:** Operating expenses decreased by $0.7 million YoY. **Key Metrics:** - **Cash Flow:** Net cash provided by operating activities was $6.2 million for the nine months ended March 31, 2025. - **Cash Position:** Cash and cash equivalents were $20 million as of March 31, 2025. - **Debt:** Long-term debt was $9.5 million as of March 31, 2025. **Quarterly Performance Discussion:** - **Revenue Decline:** Driven by a 45% decrease in IoT System Solutions and smaller declines in Embedded IoT Solutions and Software & Services. - **Operating Expenses:** Reduced by $0.7 million due to lower headcount and IT costs. - **Gross Margin:** Improved due to lower overhead costs and favorable product mix. **Trends & Uncertainties:** - **Market Conditions:** Dependence on a small number of customers and distributors. - **Supply Chain:** Risks related to component shortages and geopolitical events. - **Regulatory:** Compliance with environmental and data privacy regulations. **Future Operations Impact:** - **Acquisitions:** Recent acquisition of Netcomm Wireless Pty Ltd to enhance connectivity solutions. - **Cost Savings:** Ongoing restructuring and cost-saving initiatives. - **Cash Management:** Focus on maintaining liquidity and managing cash holdings effectively. **Liquidity & Capital Resources:** - **Cash Holdings:** $20 million in cash and cash equivalents. - **Credit Facilities:** Access to term loan and revolving credit facility with Silicon Valley Bank. - **Financial Covenants:** Compliance with liquidity, leverage, and fixed charge coverage ratios.