Lantronix, Inc. · NASDAQ:LTRX
Lantronix — Investor Presentation (March 2013)
32 slides from Lantronix's investor presentation, Mar 15, 2013
Slide 1: Lantronix Company Overview March 2013
LANTRONIX CONNECT SMART. DO MORE. Company Overview March 2013
Slide 2: Safe Harbor
Page 2 Safe Harbor This presentation contains forward - looking statements, including statements concerning future financial results, anticipated market size and growth, market vision, product features and availability, timing, competitive assessments, the Company’s expectations concerning its futur
Slide 3: More than 15B connected devices on the Internet
Page 3 Today there are more than 15B connected devices on the Internet. There are more machines on the Internet today than PC’s or Mobile devices connected to people! Source : Gartner, January 2012
Slide 4: Connected devices expected to reach 50B in 2020
Page 4 In 2020, the number of connected devices is expected to reach 50B. That is six devices for every person on Earth! Source: Cisco Visual Networking Index, 2011 - 2016
Slide 5: The World of M2M
Page 5 The World of M2M M2M is using a device sensor or meter t o capture an event temperature, level, status relayed through a network wireless, wired or hybrid t o an application software program that translates the event into capture performance, need to be meaningful information restocked, temp
Slide 6: Lantronix Overview
Page 6 Lantronix Overview ( Nasdaq: LTRX ) • Established leader in machine - to - machine (“M2M”) connectivity solutions • Results - driven management team with over 150 years of experience in M2M, communication and electronics • Product development strategy focused on expanding addressable market b
Slide 7: The Lantronix Value Proposition
Page 7 The Lantronix Value P roposition Secure, robust, easy - to - deploy connectivity solutions . . .
Slide 8: Growth Strategy
Page 8 Growth Strategy Capitalize on trends in the M2M connectivity market by leveraging our platforms to expand addressable markets and gain share in current segments • Expand addressable market by introducing innovative new products in the new areas of wireless, analog and mobile printing • Enable
Slide 9: New Product Releases
Page 9 New Product R eleases EDS - MD xPico xSenso xPrintServer Network Edition xDirect xPrintServer Home xPrintServer Office vSLM External Device Enablement Device Management Embedded Device Enablement • 12 - 24 month sales cycle, long - term recurring revenues • ~50% of revenues • Project driven s
Slide 10: New Product Announcement: xPico-WiFi
Page 10 New Product Announcement: xPico - WiFi Embedded low p ower WiFi M2M solution Leading edge f eature s et: SoftAP (embedded access point) 256 bit AES Encryption Full IP Stack and Web Server IEEE 802.11 b/g/n Industrial Temperature - 40C to +85C Ideally suited to network enable, manage and depl
Slide 11: Accelerate Growth: Expanding Lantronix Addressable Market
Page 11 Accelerate Growth: Expanding Lantronix Addressable Market New p roduct s trategy expected to expand estimated addressable market by ~4x Source: Primarily based upon internal estimates using source data from IDC & Harbor Research Baseline ~$650MM Baseline ~$1B Wireless and Analog ~$1B Mobile
Slide 12: World Class Customer Base
Page 12 World Class Customer Base Security Industrial Automation IT / Data Center Medical Energy
Slide 13: Worldwide Distribution Network
Page 13 Worldwide Distribution Network Americas (~50% Rev) Emb . Device Enablement Ext. Device Enablement Device Management EMEA (~30% Rev) Emb . Device Enablement Ext. DM APAC & Japan (~20% Rev) Emb . Device Enablement Ext. DM Cytech Online: Estimated Product M ix by Region:
Slide 14: Recent Additions to Worldwide Distribution Network
Page 14 Recent Additions to Worldwide Distribution Network External Device Enablement Device Management Embedded Device Enablement Expanding s ales channels to sell our entire product portfolio in each region
Slide 15: Executing on Strategic Plan to Drive Profitable Growth
Page 15 Executing on Strategic Plan to Drive Profitable Growth • Fiscal 2012 – Brought in new leadership – Stabilized company and organized company resources to focus on new product development • Fiscal 2013 – Executing on product development strategy with planned release of at least one new product
Slide 16: FY 2013 Progress
Page 16 FY 2013 Progress FY 2013 x Achieved 4 th consecutive quarter of non - GAAP profitability in Q2 FY 13 x New product revenues beginning to ramp x Launched 5 new products in FY 13 YTD x Expected to be on target for new product launches into analog, wireless, and mobile printing markets x Expand
Slide 17: Financial Information
LANTRONIX' FINANCIAL INFORMATION
Slide 18: Selected Income Statement Information
Page 18 Selected Income Statement Information Note: Please see Appendix A to this presentation for a reconciliation of non - GAAP measures. Non - GAAP operating income (loss) exc ludes share - based compensation, amortization & depreciation. Fiscal Year Ends on June 30th (In millions) Q2FY12 Q3FY12
Slide 19: Selected Condensed Balance Sheet Information
Page 19 Selected Condensed Balance Sheet Information Fiscal Year Ends on June 30th (In millions, except price per share data) Q4FY12 Q1FY13 Q2FY13 Cash and Cash Equivalents 11.4$ 10.5$ 8.5$ Accounts Receivable, Net 2.7 2.2 2.3 Inventories, Net 6.0 7.7 9.7 Prepaid Expenses, Other A/R and Deferred Tax
Slide 20: Lantronix: Highlights
Page 20 x Results driven, energized management team with over 150 years of M2M and communication electronics experience x Market and product strategy to expand addressable market by ~4x x New products focused on mobile printing, cellular & analog connectivity x Expanded and revitalized global distri
Slide 21: Thank You
LANTRONIX° CONNECT SMART. DO MORE. THANK YOU LANTRONIX
Slide 22: Appendix A: Use of Non-GAAP Financial Measures
Page 22 Appendix A: Use of Non - GAAP Financial Measures Lantronix believes that the presentation of non - GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and b
Slide 23: Appendix A: Reconciliation of Non-GAAP Financial Measures
Page 23 Appendix A: Reconciliation of Non - GAAP Financial Measures Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 GAAP net income (loss) (1,377)$ (41)$ (178)$ (430)$ (412)$ Non-GAAP adjustments: Cost of revenue: Share-based compensation 9 6 9 11 10 Depreciation and amortization 99 113 124 99 103 Total adj
Slide 24: Exhibits
Exhibits LANTRONIX
Slide 25: Target Model
Page 25 Target Model Highly leveraged operating model provides for accelerated income growth Q1FY12 Q2FY12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Target Model (1 - 2 year) Target Model (3 year) Gross Margin % 47.4% 48.2% 48.8% 50.7% 48.8% 49.6% 49% - 51% 49% - 51% GAAP Operating Inc (Loss) % (12%) (13%
Slide 26: Management Team
Page 26 Management Team Jeremy Whitaker , Chief Financial Officer • Former Lantronix Vice President of Finance, returned to join turnaround • Broad perspective with both outside auditor (Ernst & Young) and internal finance and accounting experience at multiple publicly traded companies Tom Morton ,
Slide 27: Board of Directors
Page 27 Board of Directors Bernhard Bruscha, Chairman and Lantronix Co - Founder (2007) • 25+ years as serial entrepreneur in technology industry • Founder of TL Investment with global investments in Europe, Asia and US Kurt Busch , Director, Lantronix President & CEO (2012) • 20+ years technology i
Slide 28: Management and Board of Director Ownership
Page 28 Management and Board of Director Ownership Shares Owned Options O/S Kurt Busch, CEO & President, Director 12,460 450,000 Bernhard Bruscha, Director & Founder 6,115,342 141,158 Bruce Edwards, Director 7,000 25,000 Michael Fink, VP of Operations 1,000 55,000 Paul Folino, Director 10,000 34,895
Slide 29: Production Shipments
Page 29 Production Shipments Product Name Q2FY13 xPrintServer – Office Edition Enterprise security and user management for iPad and iPhone printing vSLM Software version of the SLM management appliance xDirect Simple, cost effective connectivity for machines Q1FY13 xPrintServer – Home Edition iPad /
Slide 30: Application Example – Remotely Monitor Analog Sensors
Page 30 Application Example – Remotely Monitor Analog Sensors Web Access & Alarm Notification IP Internet Temperature & Humidity Sensor View readings from any browser!
Slide 31: Application Example - Mobile Printing
Page 31 Application Example - Mobile Printing User simply signs onto the WiFi network iPad , iPhone and iPod Touch users can seamlessly print to network, USB and multi - function copier / printers
Slide 32: Application Example – Cellular / Wireless Machine Connectivity
Page 32 Application Example – Cellular / Wireless Machine Connectivity Internet Cellular / Wireless Device Servers e nable management of remote and mobile machine