CONTACT: Jim Kerrigan
Lantronix
(949) 453-3990
LANTRONIX REPORTS FISCAL 2004 FIRST QUARTER RESULTS
--COMPANY DEMONSTRATES SEQUENTIAL REVENUE GROWTH--
Irvine, CA - November 6, 2003 - Lantronix, Inc. (NASDAQ: LTRX) today reported
results for its first fiscal quarter ending September 30, 2003:
- - Revenues for the three-month period ended September 30, 2003 were $12.2
million, an improvement from the prior consecutive quarter when the company
reported $11.8 million in revenue.
- - Net loss was reduced to $(3.0) million, or $(0.05) per share for the first
fiscal 2004 quarter, compared with net loss of $(11.4) million, or $(0.21)
per share for the same quarter in fiscal 2003.
- - Cash usage for the quarter was $611,000, in line with the company's earlier
guidance.
For the first fiscal quarter ended September 30, 2003, the company reported
revenues of $12.2 million and net loss of $(3.0) million, or $(0.05) per share,
compared with revenues of $12.7 million and net loss of $(11.4) million, or
$(0.21) per share for the first fiscal quarter ended September 30, 2002. For the
prior consecutive quarter, the company reported $11.8 million in revenues and
net loss of $(19.1) million, or $(0.33) per share.
Cash and cash equivalents and marketable securities decreased approximately
$611,000 during the quarter ended September 30, 2003, compared with a decrease
of $9.1 million for the same period a year earlier, and compared with a decrease
of $459,000 in the quarter ended June 30, 2003.
"Results for the quarter reflect the continued quarter-to-quarter progress we
are making toward achieving our financial model," said Marc Nussbaum, president
and chief executive officer. "Our net loss was reduced, cash usage was
maintained at our target level in the range of $1 million, and revenues
increased for the first time in four quarters."
FISCAL 2004 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.
"During the second quarter, we look forward to continued improvement in our
operating fundamentals with cash usage remaining in the same neutral range of
approximately $1 million," said Nussbaum.
About Lantronix
Lantronix, Inc. (Nasdaq: LTRX) is a provider of hardware and software solutions
ranging from systems that allow users to remotely manage network infrastructure
equipment to technologies that network-enable products and appliances.
Lantronix was established in 1989, and its worldwide headquarters are in Irvine,
Calif. For more information, visit the company on the Internet at
www.lantronix.com.
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This news release contains forward-looking statements that involve risks and
uncertainties. Actual results and outcomes may differ materially from those
discussed or anticipated. Factors that might affect actual outcomes include, but
are not limited to future margins 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.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(IN THOUSANDS)
SEPTEMBER 30, JUNE 30,
2003 2003
(UNAUDITED)
Cash, cash equivalents and marketable securities. $ 13,467 $ 14,078
Accounts receivable, net. . . . . . . . . . . . . 3,721 3,858
Inventories . . . . . . . . . . . . . . . . . . . 6,112 6,011
Goodwill, net . . . . . . . . . . . . . . . . . . 11,726 11,726
Purchased intangible assets, net. . . . . . . . . 4,653 5,394
Long-term investments . . . . . . . . . . . . . . 5,249 5,458
Total assets. . . . . . . . . . . . . . . . . . . 58,773 62,856
Accumulated deficit . . . . . . . . . . . . . . . (143,473) (140,424)
Total stockholders' equity. . . . . . . . . . . . 36,546 37,717
SELECTED UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
SEPTEMBER 30,
2003 2002
-------- --------
Net revenues . . . . . . . . . . . . . . . . . $12,230 $ 12,681
Cost of revenues . . . . . . . . . . . . . . . 6,112 8,196
Gross profit . . . . . . . . . . . . . . . . . 6,118 4,485
Operating expenses:
Selling, general and administrative. . . . . 6,705 7,871
Research and development . . . . . . . . . . 1,984 2,430
Stock-based compensation . . . . . . . . . . 155 445
Amortization of purchased intangible assets. 144 228
Restructure charges. . . . . . . . . . . . . - 4,929
Total operating expenses . . . . . . . . . 8,988 15,903
Loss from operations . . . . . . . . . . . . . (2,870) (11,418)
Interest income (expense), net . . . . . . . . 24 192
Other income (expense), net. . . . . . . . . . (170) (90)
Loss before income taxes . . . . . . . . . . . (3,016) (11,316)
Provision for income taxes . . . . . . . . . . 33 86
Net loss . . . . . . . . . . . . . . . . . . . $(3,049) $(11,402)
Basic and diluted net loss per share . . . . . $ (0.05) $ (0.21)
Weighted average shares (basic and diluted). . 55,484 53,935