Lantronix Met Key Objectives in Fiscal 2003 Second Quarter

2/7/2003 - Lantronix (Nasdaq: LTRX) reported results for its second fiscal quarter ended December 31, 2002:

Revenues for the second quarter ended December 31, 2002, were $12.7 million, compared to $15.7 million for the same period in the previous fiscal year, and $12.7 million for the quarter ended September 30, 2002. Net loss for the three-month period was $(7.1) million, or $(0.13) per share, compared with a net loss of $(1.9) million, or $(0.04) per share, for the second quarter in the previous fiscal year and a net loss of $(11.4) million, or $(0.21) per share, for the prior quarter. Revenues for the six-month period ending December 31, 2002, were $25.3 million, compared with $31.6 million for the same period in the previous fiscal year. Net loss for the six-month period totaled $(18.5) million, or $(0.34) per share, compared with net loss of $(4.2) million, or $(0.09) per share for the same period last year.

During the second quarter, cash and investments decreased approximately $4.3 million compared with a decrease of $9.1 million for the prior quarter. Excluding $1.6 million in cash used for costs related to the first quarter restructuring and $1.1 million in non-recurring expenses and investments, net cash used was $1.6 million for the quarter. Excluding $6.1 million in cash used for the Lightwave settlement, Gordian intellectual property purchase and the acquisition of Stallion, net cash used was $3.0 million for the prior quarter. As of December 31, 2002, the company had cash, cash equivalents, and marketable securities of approximately $20.0 million.

"Our results this quarter are consistent with guidance we provided earlier and demonstrate incrementally improved operating results from the prior quarter," said Marc Nussbaum, interim chief executive officer. "Our cash burn has been reduced significantly and with our shift to contract manufacturing, improved asset management and other expense control efforts we have made considerable progress.

Fiscal 2003 Outlook
The following statements are forward-looking and are based on current expectations. Actual results may differ materially from those described below. The company undertakes no obligation to update this release.

"During the quarter, our increased marketing and sales efforts were effective in generating demand, which left us with an increased backlog entering into the third fiscal quarter. With our contract manufacturing capabilities now in place, we expect revenue for the third quarter to increase from Q2 to approximately $13.5 million," said Nussbaum. "With reduced G&A, legal and other expenses and enhanced inventory management activities, we continue to reduce our cash usage. We remain on target to achieve the goal of operating cash break even for the fourth fiscal quarter."

The company indicated that it expects total cash usage for the third fiscal quarter to be in the range of $2-3 million, which includes cash payments related to its September restructuring.

The company expects operating expenses to be impacted during the third fiscal quarter by one-time, non-cash charges totaling approximately $1.7 million, related to the employee stock option exchange tender offer completed in January, and the issuance of new shares of restricted stock to former Premise shareholders.

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 devices 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

Previous Page | News by Category | News Search

If you found this page useful, bookmark and share it on: