Lantronix, Inc. · NASDAQ:LTRX
Lantronix — 24th Roth Capital Conference 2012
25 slides from Lantronix's conference presentation, Mar 13, 2012
Slide 1: Investor Presentation - Lantronix, Roth Capital Conference
Investor Presentation LANTRONIX (NASDAQ: LTRX ) Kurt Busch , President & CEO Jeremy Whitaker , CFO 24 th Roth Capital Conference, March 14, 2012
Slide 2: Safe Harbor
Page 2 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Safe Harbor This presentation contains forward - looking statements, including statements concerning financial results, anticipated market growth, market size, market vision, product features and availability timing, competitive asses
Slide 3: About Lantronix
Page 3 | Investor Presentation March 14, 2012 © 2012 Lantroni x . About Lantronix (NASDAQ: LTRX ) Global leader in the design, manufacture and sale of secure connectivity solutions for machine - to - machine (M2M) communication • 3 million+ Lantronix devices currently deployed (in - market) • Custom
Slide 4: World Class Global Customer Base
Page 4 | Investor Presentation March 14, 2012 © 2012 Lantroni x . World Class Global Customer Base Security Industrial Automation IT / Data Center Medical Energy Over 3 million devices connected
Slide 5: Lantronix: Investment Highlights
Page 5 | Investor Presentation March 14, 2012 © 2012 Lantroni x . • Strong new, energized management team with M2M and communications expertise • 20 years of industry leadership allows us to aggressively expand into new markets • Focused on execution of turnaround – Financial discipline – New produc
Slide 6: M2M Market - What's all the excitement about?
Page 6 | Investor Presentation March 14, 2012 © 2012 Lantroni x . 7.8 Billion People 65% Market Saturation 50 Billion Connectable Machines 1% Market Saturation M2M Market - “What’s all the excitement about?” “5 billion mobile phone subscribers today will be surpassed by 50 billion connected non - ph
Slide 7: M2M Ecosystem: Connecting Machines to Machines
Page 7 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Wired Wireless Cellular* Sensor* M2M Ecosystem . . . Connecting Machines to Machines to Help People Do More * Future Products
Slide 8: Our Core Value Proposition: Simplicity
Page 8 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Our Core Value Proposition: Simplicity CONNECT: platform - independent, wired, wireless, embedded and external network connectivity SMART: provide the networking expertise so our customers can simply and securely network their product
Slide 9: Growth Strategy
Page 9 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Growth Strategy Capitalize on trends in the M2M connectivity market by leveraging our existing platforms to expand addressable markets and gain share in current segments • Expand TAM by introducing innovative new products and organizi
Slide 10: Current Products: Device Enablement and Device Management
Page 10 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Device Enablement Device Management Current Products • Simple and cost effective serial - to - Ethernet Recently launched xPico , worlds smallest device server and PremierWave - XN High Performance WiFi device server FY 11 Revenue: ~
Slide 11: Near Term Product Roadmap - 2H CY
Page 11 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Near Term Product Roadmap – 2H CY 12 Cellular Sensor • Pervasive machine connectivity • Securely manage remote and mobile machines • Network enable sensors • Enables decisions based on the response of physical stimulus (heat, light,
Slide 12: Recent New Product: xPrintServer Network Edition
Page 12 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Recent New Product: x PrintServer ™ – Network Edition First New Product Initiated by New Management xPrintServer – Network Edition • CONNECT: – Designed specifically for anyone in a networked printer environment – Print wirelessly fr
Slide 13: xPrintServer: What the Experts are Saying
Page 13 | Investor Presentation March 14, 2012 © 2012 Lantroni x . x PrintServer: What the Experts are Saying… “Best in Show” Macworld 2012 “Top 25 New Products” CES 2012 “Editor’s Choice” Macworld 2012
Slide 14: xPrintServer: Product Reviews
Page 14 | Investor Presentation March 14, 2012 © 2012 Lantroni x . x PrintServer: Product Reviews “It’s truly plug - and - play. And it just works!” “The xPrintServer make me giddy with glee!” “xPrintServer overcomes Apple’s printing gap, with amazing simplicity.” “You’re going to love this product!
Slide 15: Accelerate Growth: Expanding Lantronix TAM
Page 15 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Accelerate Growth: Expanding Lantronix TAM New Products Plans Expand Estimated TAM by over 4x New - xPrintServer New - Sensor and Cellular Device Enablement Refresh - Device Management Current - Wired and Wireless Device Enablement S
Slide 16: Turnaround Progress: First Six Months
Page 16 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Turnaround Progress: First Six Months… • New CEO and CFO appointed; • Recruited and retained experienced management; • Developed strategy to expand market share as well as available market segments; • Reorganized and re - energized r
Slide 17: Leadership Team
Page 17 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Leadership 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 e
Slide 18: Income Statement Information
Page 18 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Income Statement Information (1) Please see Appendix A to this presentation for a reconciliation of non - GAAP measures. Fiscal Year Ended June 30 $ in Millions FY 2010 FY 2011 FQ2 2012 Net Revenue $46.4 $49.3 $10.5 Y/Y Change (5.6%)
Slide 19: Balance Sheet Information
Page 19 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Balance Sheet Information Fiscal Year Ended June 30 $ in Millions FY 2010 FY 2011 FQ2 2012 Cash and Cash Equivalents $10.1 $5.8 $3.3 Accounts Receivable, Net $1.3 $2.9 $1.4 Inventory, Net $6.9 $9.2 $8.5 Total Current Assets $20.4 $19
Slide 20: The Turnaround: Stabilizing the Company
Page 20 | Investor Presentation March 14, 2012 © 2012 Lantroni x . The Turnaround: Stabilizing the Company Stabilize Working Capital • Restructuring o Expected to save ~$2M per year o Expenses at the BoD and named executive officer level reduced by ~$350K / year o Reduce spending on outside services
Slide 21: Improve Gross Margins
Page 21 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Improve Gross Margins Working to return margins to historical range of 49% to 51% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% FQ1'10 FQ2'10 FQ3'10 FQ4'10 FQ1'11 FQ2'11 FQ3'11 FQ4'11 FQ1'12 FQ2'12 Gross Margin
Slide 22: Financial Discipline: Reduce Non-GAAP Breakeven Point
Page 22 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Financial Discipline: Reduce Non - GAAP Breakeven Point Cost savings measures and margin improvements to enable a corporate non - GAAP breakeven target below $11MM (1) Please see Appendix A to this presentation for a reconciliation o
Slide 23: Lantronix: Summary
Page 23 | Investor Presentation March 14, 2012 © 2012 Lantroni x . • Strong new, energized management team with M2M and communications expertise • The company has over 20 years of connectivity experience allowing us to aggressively expand into new markets • Focused on execution – Financial – Product
Slide 24: Thank You
Page 24 | Investor Presentation March 14, 2012 © 2012 Lantroni x . THANK YOU • For more information, email us at investors@lantronix.com • Please join us for our next quarterly conference call on Thursday, May 10 @ 5PM EST.
Slide 25: Appendix A: Reconciliation of Non-GAAP Measures
Page 25 | Investor Presentation March 14, 2012 © 2012 Lantroni x . Appendix A: Reconciliation of Non - GAAP Measures Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 2010 2011 GAAP net income (loss) (499)$ (375)$ (136)$ (509)$ (678)$ (579)$ (399)$ (3,615)$ (1,444)$ (1,377)$ (1,519)$ (5,271)$ Non-GA