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Lantronix Inc. (LTRX-4.10%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing details a decrease in net revenue to $31,161,000 from $37,038,000 in the same quarter of the previous year. This decrease is attributed to lower sales in the IoT System Solutions, Embedded IoT Solutions, and Software & Services product lines.
Gross profit for the quarter was $13,284,000, down from $15,031,000 in the previous year. The gross margin increased slightly due to a favorable product sales mix and reduced overhead costs.
Selling, general, and administrative expenses decreased to $8,811,000 from $10,224,000, primarily due to lower sales conference and facilities-related costs, reduced share-based compensation, and lower variable compensation costs.
Research and development expenses increased to $4,984,000 from $4,725,000, driven by higher product certification expenses.
Lantronix reported a net loss of $2,372,000 for the quarter, compared to a net loss of $2,593,000 in the previous year. The decrease in net loss was primarily due to a reduction in operating expenses.
Cash provided by operating activities was $3,003,000, while cash used in investing and financing activities was $6,699,000 and $3,331,000, respectively.
Lantronix completed the acquisition of Netcomm Wireless Pty Ltd for $6,458,000 in cash, adding products to enhance its connectivity solutions in critical infrastructure, asset monitoring, and telecommunications.
The company maintains compliance with its financial covenants under its Senior Credit Facilities and anticipates that its current cash holdings and net cash flows from operations will be sufficient to meet its obligations for the foreseeable future.
Lantronix has addressed a previously identified material weakness in its internal control related to information technology general controls, implementing remedial actions to enhance the design and operation of these controls.
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 February 7, 2025. To report an error, please email earnings@qz.com.