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Lantronix, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenue to $34,423,000 from $33,031,000 in the same quarter the previous year. The increase is primarily attributed to higher unit sales in the Embedded IoT Solutions product line.
Cost of revenue for the quarter was $19,948,000, resulting in a gross profit of $14,475,000, compared to $14,097,000 in the previous year. Gross margin slightly decreased to 42.1% from 42.7% due to changes in product sales mix.
Selling, general, and administrative expenses increased to $9,496,000 from $9,170,000, primarily due to an increase in personnel-related costs.
Research and development expenses decreased to $4,956,000 from $5,106,000, mainly due to lower product certification expenses.
The company reported a net loss of $2,502,000 for the quarter, compared to a net loss of $1,886,000 in the previous year. The increase in net loss is primarily due to restructuring and severance charges.
Cash provided by operating activities was $2,663,000, while cash used in investing and financing activities was $157,000 and $2,348,000, respectively.
Lantronix had a working capital of $57,115,000 as of September 30, 2024. The company believes its current cash holdings and net cash flows from operations are sufficient to meet its obligations for the foreseeable future.
The filing details various financial agreements, including amendments to its loan agreement with Silicon Valley Bank (SIVB), extending the maturity of its Senior Credit Facilities to August 2, 2026.
Lantronix identified a material weakness in its internal controls over financial reporting related to information technology general controls, which it has implemented remedial actions to address.
The company announced a definitive agreement to acquire the enterprise IoT business of NetComm Wireless Pty Ltd for $6,500,000, with the transaction expected to close during the second fiscal quarter ending December 31, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lantronix Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.