IRVINE, Calif. - Lantronix Inc. (NASDAQ: NASDAQ:LTRX), a company specializing in IoT compute and connectivity solutions with a market capitalization of $154.67 million and annual revenue of $161.72 million, today announced the promotion of Brent Stringham to the position of chief financial officer (CFO). Stringham, who has been with the company since 2012, previously held the roles of interim CFO and Chief Accounting Officer at Lantronix.
CEO Saleel Awsare expressed confidence in Stringham's extensive financial knowledge and his contributions to the company over the past 13 years. According to InvestingPro data, the company maintains a healthy financial position with a strong current ratio of 2.61 and operates with moderate debt levels. Awsare stated that Stringham's leadership is expected to support Lantronix's commitment to shareholder value and its strategic goals in the IoT industry's Edge Intelligence sector.
Stringham brings a solid background in finance to his new role, with previous positions at Iteris (NASDAQ:ITI) Inc., Netlist (OTC:NLST) Inc., and Ernst & Young. He is a licensed Certified Public Accountant and holds a bachelor's degree in Business Administration and Accounting from California State University, Fullerton.
Lantronix is known for its innovative solutions that cater to high-growth industries such as Smart Cities, Automotive, and Enterprise. The company offers products and services designed to address each layer of the IoT Stack, including Intelligent Substations infrastructure, Infotainment systems, Video Surveillance, and advanced Out-of-Band Management (OOBM) for Cloud and Edge Computing.
The company's announcement is based on a press release statement and comes with the usual forward-looking statements disclaimer, noting that actual results may vary due to a range of risks and uncertainties.
Investors are advised not to place undue reliance on these forward-looking statements, which reflect the company's expectations as of the date of the release. Lantronix has made it clear that it will not undertake to update any forward-looking statements unless required by law or Nasdaq Stock Market rules.
In other recent news, Lantronix Inc. has made significant strides in the Internet of Things (IoT) sector with the acquisition of NetComm Wireless Pty Ltd, a subsidiary of DZS Inc. The $6.5 million deal is expected to enhance Lantronix's Enterprise IoT portfolio with advanced 5G technology and contribute between $6 million and $7 million in revenue during the 2024 calendar year. In addition to this, the company reported a modest 4% increase in year-over-year revenue, totaling $34.4 million for the first quarter of fiscal year 2025, with non-GAAP earnings per share (EPS) reported at $0.06.
The company's shares have been subjected to a revised stock price target from Canaccord Genuity, which reduced it to $5.00 from the previous $7.50 but maintained a Buy rating. The new price target is based on approximately 13 times the firm's fiscal year 2026 estimated non-GAAP EPS of $0.38. Canaccord Genuity anticipates potential future acquisitions by Lantronix and is looking for follow-on orders from Lantronix's largest customer, Gridspertise, and Turkish automotive OEM, Togg.
These recent developments, including the acquisition of NetComm and the collaboration with Qualcomm (NASDAQ:QCOM) on Edge AI, are projected to significantly boost Lantronix's revenue and market position from 2026 onward. However, the company has provided a cautious revenue outlook for Q2 FY2025, projecting revenue between $29 million and $33 million and non-GAAP EPS ranging from $0.01 to $0.05. Despite ongoing challenges with a major automotive customer in Turkey and slowdowns in federal projects, Lantronix is forecasting a 20% growth for 2025 following the NetComm integration.
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