- Fourth Quarter Net Revenue was
$17.4 Million , Up 71% from the Prior Year and 5% Sequentially - GAAP EPS, Inclusive of Acquisition and Severance Related Costs, was (
$0.06 ) per share - Non-GAAP EPS was
$0.04 per share, Driven by Revenue Growth, Effective Integration, and Rigorous Expense Controls - Company Guides Fiscal 2021 Revenue Growth of 20%-25% and Non-GAAP EPS Growth of 120%-160%
Net revenue totaled
GAAP EPS was (
Non-GAAP EPS was
“We executed on our plan despite the ongoing challenges of the Covid-19 pandemic,” stated
Business Outlook
Due to the ongoing uncertainties caused by the COVID-19 pandemic that continue to impact supply chains,
Conference Call and Webcast
Investors can access a replay of the conference call starting at approximately
About Lantronix
Lantronix’s portfolio of services and products address each layer of the IoT Stack including Collect, Connect, Compute, Control and Comprehend, enabling its customers to deploy successful IoT and REM solutions. Lantronix’s services and products deliver a holistic approach, addressing its customers’ needs by integrating a SaaS management platform with custom application development layered on top of external and embedded hardware enabling intelligent edge computing, secure communications (wired, Wi-Fi, and cellular), location and positional tracking, and environmental sensing and reporting.
With three decades of proven experience in creating robust industry and customer specific solutions,
We were incorporated in
Learn more at the
References in this Report to “fiscal 2020” refer to the fiscal year ended
Discussion of Non-GAAP Financial Measures
Non-GAAP net income (loss) consists of net income (loss) excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) severance and restructuring charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (viiii) amortization of purchased intangibles, and (x) amortization of manufacturing profit in acquired inventory.
Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP net income (loss) per share, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.
Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.
Forward-Looking Statements
This news release contains forward-looking statements, including statements concerning our projected operating and financial performance for the first quarter of fiscal 2021, annual projections for fiscal 2021, the short- and long-term impact of COVID-19 on our business, and the expected effects and benefits of the efforts of our team to transform our business, our acquisition strategy, and the development of value-added technologies within the IoT stack. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the impact of COVID-19 and the measures to reduce its spread on our employees, supply and distribution chains, the global economy and our financial condition and liquidity; the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable
Lantronix Investor Relations Contact:
Chief Financial Officer
investors@lantronix.com
© 2020
Unaudited Consolidated Balance Sheets | ||||||||
(In thousands, except share and par value data) | ||||||||
2020 | 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 7,691 | $ | 18,282 | ||||
Accounts receivable (net of allowance for doubtful accounts of | ||||||||
11,411 | 7,388 | |||||||
Inventories, net | 13,781 | 10,509 | ||||||
Contract manufacturers' receivable | 337 | 1,324 | ||||||
Prepaid expenses and other current assets | 1,290 | 687 | ||||||
Total current assets | 34,510 | 38,190 | ||||||
Property and equipment, net | 1,587 | 1,199 | ||||||
15,810 | 9,488 | |||||||
Purchased intangible assets, net | 12,449 | - | ||||||
Other assets | 3,577 | 67 | ||||||
Total assets | $ | 67,933 | $ | 48,944 | ||||
Liabilities and stockholders' equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 5,331 | $ | 4,716 | ||||
Accrued payroll and related expenses | 2,658 | 2,060 | ||||||
Short-term debt, net | 1,472 | - | ||||||
Other current liabilities | 6,308 | 4,696 | ||||||
Total current liabilities | 15,769 | 11,472 | ||||||
Long-term debt, net | 3,682 | - | ||||||
Other non-current liabilities | 1,962 | 206 | ||||||
Total liabilities | 21,413 | 11,678 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, | ||||||||
none issued and outstanding | - | - | ||||||
Common stock, | ||||||||
28,231,054 and 22,811,743 shares issued and outstanding at | ||||||||
3 | 2 | |||||||
Additional paid-in capital | 246,265 | 226,274 | ||||||
Accumulated deficit | (200,119 | ) | (189,381 | ) | ||||
Accumulated other comprehensive income | 371 | 371 | ||||||
Total stockholders' equity | 46,520 | 37,266 | ||||||
Total liabilities and stockholders' equity | $ | 67,933 | $ | 48,944 | ||||
Unaudited Consolidated Statements of Operations | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Net revenue | $ | 17,397 | $ | 16,512 | $ | 10,153 | $ | 59,878 | $ | 46,890 | ||||||||||
Cost of revenue | 10,846 | 9,135 | 4,411 | 32,978 | 20,617 | |||||||||||||||
Gross profit | 6,551 | 7,377 | 5,742 | 26,900 | 26,273 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | 4,680 | 5,558 | 3,554 | 19,582 | 15,851 | |||||||||||||||
Research and development | 2,010 | 2,724 | 2,200 | 9,691 | 9,079 | |||||||||||||||
Restructuring, severance and related charges | 478 | 2,263 | 823 | 3,844 | 1,146 | |||||||||||||||
Acquisition-related costs | 38 | 1,250 | 410 | 2,284 | 410 | |||||||||||||||
Impairment of long-lived asset | - | - | 275 | - | 275 | |||||||||||||||
Amortization of purchased intangible assets | 941 | 801 | - | 2,037 | - | |||||||||||||||
Total operating expenses | 8,147 | 12,596 | 7,262 | 37,438 | 26,761 | |||||||||||||||
Loss from operations | (1,596 | ) | (5,219 | ) | (1,520 | ) | (10,538 | ) | (488 | ) | ||||||||||
Interest income (expense), net | (90 | ) | (83 | ) | 89 | (133 | ) | 236 | ||||||||||||
Other income (expense), net | 1 | 129 | (1 | ) | 77 | (15 | ) | |||||||||||||
Loss before income taxes | (1,685 | ) | (5,173 | ) | (1,432 | ) | (10,594 | ) | (267 | ) | ||||||||||
Provision for income taxes | 16 | 43 | 27 | 144 | 141 | |||||||||||||||
Net loss | $ | (1,701 | ) | $ | (5,216 | ) | $ | (1,459 | ) | $ | (10,738 | ) | $ | (408 | ) | |||||
Net loss per share - basic and diluted | $ | (0.06 | ) | $ | (0.19 | ) | $ | (0.06 | ) | $ | (0.42 | ) | $ | (0.02 | ) | |||||
Weighted-average common shares - basic and diluted | 28,046 | 27,048 | 22,621 | 25,281 | 21,580 | |||||||||||||||
Unaudited Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
GAAP net income (loss) | $ | (1,701 | ) | $ | (5,216 | ) | $ | (1,459 | ) | $ | (10,738 | ) | $ | (408 | ) | |||||
Non-GAAP adjustments: | ||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Share-based compensation | 85 | 70 | 23 | 227 | 85 | |||||||||||||||
Employer portion of withholding taxes on stock grants | - | 1 | - | 2 | - | |||||||||||||||
Depreciation and amortization | 179 | 149 | 53 | 468 | 197 | |||||||||||||||
Total adjustment to costs of revenue | 264 | 220 | 76 | 697 | 282 | |||||||||||||||
Selling, general and administrative: | ||||||||||||||||||||
Share-based compensation | 783 | 939 | 491 | 2,959 | 1,441 | |||||||||||||||
Employer portion of withholding taxes on stock grants | 12 | 3 | - | 21 | 12 | |||||||||||||||
Depreciation and amortization | 69 | 81 | 48 | 257 | 192 | |||||||||||||||
Total adjustments to selling, general and administrative | 864 | 1,023 | 539 | 3,237 | 1,645 | |||||||||||||||
Research and development: | ||||||||||||||||||||
Share-based compensation | 122 | 123 | 97 | 453 | 345 | |||||||||||||||
Employer portion of withholding taxes on stock grants | 2 | 3 | - | 10 | - | |||||||||||||||
Depreciation and amortization | 27 | 39 | 22 | 122 | 75 | |||||||||||||||
Total adjustments to research and development | 151 | 165 | 119 | 585 | 420 | |||||||||||||||
Restructuring, severance and related charges | 478 | 2,263 | 823 | 3,844 | 1,146 | |||||||||||||||
Acquisition related costs | 38 | 1,250 | 410 | 2,284 | 410 | |||||||||||||||
Amortization of purchased intangible assets | 941 | 801 | - | 2,037 | - | |||||||||||||||
Litigation settlement cost | - | 75 | - | 75 | - | |||||||||||||||
Amortization of manufacturing profit in acquired inventory | 51 | 33 | - | 255 | - | |||||||||||||||
Impairment of long-lived asset | - | - | 275 | - | 275 | |||||||||||||||
Total non-GAAP adjustments to operating expenses | 2,523 | 5,610 | 2,166 | 12,317 | 3,896 | |||||||||||||||
Interest (income) expense, net | 90 | 83 | (89 | ) | 133 | (236 | ) | |||||||||||||
Other (income) expense, net | (1 | ) | (129 | ) | 1 | (77 | ) | 15 | ||||||||||||
Provision for income taxes | 16 | 43 | 27 | 144 | 141 | |||||||||||||||
Total Non-GAAP adjustments | 2,892 | 5,827 | 2,181 | 13,214 | 4,098 | |||||||||||||||
Non-GAAP net income | $ | 1,191 | $ | 611 | $ | 722 | $ | 2,476 | $ | 3,690 | ||||||||||
Non-GAAP net income per share (diluted) | $ | 0.04 | $ | 0.02 | $ | 0.03 | $ | 0.09 | $ | 0.16 | ||||||||||
Denominator for GAAP net income (loss) per share (diluted) | 28,046 | 27,048 | 22,621 | 25,281 | 21,580 | |||||||||||||||
Non-GAAP adjustment | 1,959 | 1,641 | 1,909 | 1,603 | 1,998 | |||||||||||||||
Denominator for non-GAAP net income per share (diluted) | 30,005 | 28,689 | 24,530 | 26,884 | 23,578 | |||||||||||||||
GAAP operating expenses | $ | 8,147 | $ | 12,596 | $ | 7,262 | $ | 37,438 | $ | 26,761 | ||||||||||
Non-GAAP adjustments to operating expenses | (2,523 | ) | (5,610 | ) | (2,166 | ) | (12,317 | ) | (3,896 | ) | ||||||||||
Non-GAAP operating expenses | $ | 5,624 | $ | 6,986 | $ | 5,096 | $ | 25,121 | $ | 22,865 | ||||||||||
Unaudited Net Revenues by Product Line and Region | ||||||||||||||
(In thousands) | ||||||||||||||
Three Months Ended | Years Ended | |||||||||||||
IoT | $ | 14,588 | $ | 13,922 | $ | 8,327 | $ | 49,911 | $ | 35,299 | ||||
REM | 2,671 | 2,424 | 1,646 | 9,228 | 10,845 | |||||||||
Other | 138 | 166 | 180 | 739 | 746 | |||||||||
$ | 17,397 | $ | 16,512 | $ | 10,153 | $ | 59,878 | $ | 46,890 | |||||
Three Months Ended | Years Ended | |||||||||||||
$ | 11,549 | $ | 10,126 | $ | 5,217 | $ | 33,279 | $ | 25,179 | |||||
EMEA | 3,093 | 3,612 | 3,229 | 15,588 | 14,586 | |||||||||
APJ | 2,755 | 2,774 | 1,707 | 11,011 | 7,125 | |||||||||
$ | 17,397 | $ | 16,512 | $ | 10,153 | $ | 59,878 | $ | 46,890 | |||||
Source:
2020 GlobeNewswire, Inc., source