Lantronix, Inc. · NASDAQ:LTRX
Lantronix — Investor Presentation (August 2018)
25 slides from Lantronix's investor presentation, Aug 23, 2018
Slide 1: Investor Presentation August 2018
Investor Presentation August 2018 Copyright © Lantronix 2018. All rights reserved.
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains forward - looking statements, including statements concerning our business plans, our product development strategies, and our target financial model . Any statement relating to our plans, goals, expectations or any future event should be consid
Slide 3: Lantronix Enabling the Industrial Internet of Things
Lantronix Enabling the Industrial Internet of Things • Global provider of secure data access and management solutions for Industrial IoT • Innovator known for industry leading connectivity solutions that are easy to deploy and help accelerate time to market • Millions of devices connected w orldwide
Slide 4: Proven Leadership Team
4 PROVEN LEADERSHIP TEAM Jeffrey Benck President & CEO Jeremy Whitaker CFO Michael A. Fink VP, Operations Fathi Hakam VP, Engineering Shahram Mehraban VP, Marketing Kurt Scheuerman VP, General Counsel Tom Morton VP, Human Resources Kevin Yoder VP, WW Sales
Slide 5: Our Mission
5 OUR MISSION CREATING SECURE DATA ACCESS AND MANAGEMENT SOLUTIONS FOR THE INDUSTRIAL IOT Our mission is to be the leading supplier of IoT solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for appli
Slide 6: Our Growth Strategy
Expand SaaS IoT platform with new IoT and ITM applications Pursue Market Share Gains with IT Management Products Grow IoT Revenue with New Gateway Products OUR GROWTH STRATEGY
Slide 7: Product Portfolio
Product Portfolio 7 IOT GATEWAYS & BUILDING BLOCKS Connectivity Without Complexity IT MANAGEMENT SOLUTIONS Management of Enterprise IT Infrastructure MANAGEMENT SOFTWARE Scalable Software Made Simple
Slide 8: Well Positioned in Key Market Segments
what WELL POSITIONED IN KEY MARKET SEGMENTS Strong base of global blue - chip customers RETAIL INDUSTRIAL ENERGY / UTILITIES HEALTHCARE SMART BUILDING TRANSPORTATION FINANCIALS EDUCATION MILITARY & GOV’T TELECOM
Slide 9: Favorable Secular Trends
FAVORABLE SECULAR TRENDS IoT Product Line Growth in online and mobile banking and increasing security threats FINANCIALS Growth on online education requiring higher levels of network uptime EDUCATION Increasing connectivity of critical infrastructure systems & defense spending MILITARY & GOV’T Incre
Slide 10: IoT Solutions from the Device to the Data Center
IOT SOLUTIONS FROM THE DEVICE TO THE DATA CENTER New Connected Devices Legacy Devices Network Lantronix Embedded Modules & Gateways Data Center Lantronix External Device Gateways Lantronix IT Management Solutions
Slide 11: Lantronix IoT Gateways Product Portfolio
LANTRONIX IOT GATEWAYS PRODUCT PORTFOLIO Secure and certified enterprise - ready connectivity, network intelligence and management at scale for industrial and commercial devices and machines Embedded IoT Gateways Ideal to drop into any new or inflight design and their tiny size is perfect for high -
Slide 12: xPico 200 Series of Embedded IoT Gateways
▪ Seamlessly enable Wi - Fi, Ethernet and Bluetooth connectivity ▪ Build and deploy with production ready embedded software ▪ Integrate advanced enterprise security and intelligent networking ▪ Remotely monitor, manage and maintain your machines with MACH10 Accelerate the development of secure conne
Slide 13: XPort Edge Next Generation Embedded Ethernet Gateway
Copyright © Lantronix 2017. All rights reserved. COMPANY CONFIDENTIAL XPort Edge Next Generation Embedded Ethernet Gateway & Device Server in the same compact form factor as XPort Industrial IOT - Accelerated. Next generation of the world’s best selling embedded Ethernet device server providing full
Slide 14: Lantronix Gateway Central Device Management
Copyright © Lantronix 2017. All rights reserved. COMPANY CONFIDENTIAL 14 LANTRONIX GATEWAY CENTRAL Device Management SaaS Offering for Lantronix Gateways Cloud - powered Configuration, Management And Monitoring For Lantronix Gateways Centralized Directory for IoT Gateways Automate Updates Monitor Ne
Slide 15: Lantronix IT Management Product Portfolio
Lantronix IT Management Product Portfolio ADVANCED CONSOLE MANAGER BRANCH OFFICE MANAGER REMOTE KVM - OVER - IP Enterprise Data Centers & Development Labs Retail Store & Branch Offices Kiosks, Digital Signs, Test Labs
Slide 16: Lantronix ConsoleFlow
Lantronix ConsoleFlow Bringing In - band Productivity to Out - of - Band Networks • Cloud - based or on - premise software with mobile app • Centralized management of Lantronix console managers • Secure remote access, automated monitoring, and real - time notifications
Slide 17: Lantronix: An IoT Innovator
Copyright © Lantronix 2017. All rights reserved. COMPANY CONFIDENTIAL COPYRIGHT © LANTRONIX 2018. ALL RIGHTS RESERVED. 17 LANTRONIX: AN IOT INNOVATOR Industry’s 1 st 802.11AC certified intelligent gateway Industry’s 1 st M2M Module with Enterprise Wi - Fi Security Industry’s 1 st embedded server wit
Slide 18: Operating Results
Operating Results LANTRONIX
Slide 19: Selected Fiscal Year Financial Performance
SELECTED FISCAL YEAR FINANCIAL PERFORMANCE $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 FY15 FY16 FY17 FY18 Liquidity Working Capital Cash $- $10,000 $20,000 $30,000 $40,000 $50,000 FY15 FY16 FY17 FY18 Net Revenue by Product Line IoT ITM Other - In FY18, IoT and ITM grew by 6% and
Slide 20: Selected Quarterly Financial Performance
SELECTED QUARTERLY FINANCIAL PERFORMANCE - Net revenue above $12M for first time in 20 quarters - Drag from Other (EOL) nearly gone - 900+ basis point improvement in GAAP gross profit margin over last 3 years - 3 sequential quarters of GAAP income - 10 sequential quarters of non - GAAP income $- $2,
Slide 21: Selected Income Statement Information
21 (In thousands) Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY16 FY17 FY18 Net Revenue $ 11,044 $ 10,606 $ 11,336 $ 11,601 $ 12,037 $ 40,592 $ 44,730 $ 45,580 Gross Profit $ 5,670 $ 5,594 $ 6,314 $ 6,584 $ 6,876 $ 19,378 $ 23,580 $ 25,368 % of Net Revenue 51.3% 52.7% 55.7% 56.8% 57.1% 47.7% 52.7% 55.7
Slide 22: Selected Balance Sheet Information
SELECTED BALANCE SHEET INFORMATION (In thousands except price per share data) June 30, June 30, 2017 2018 Cash and Cash Equivalents $ 8,073 $ 9,568 Accounts Receivable, Net 3,432 4,244 Inventories, Net 6,959 8,439 Total Current Assets 19,380 23,270 Current Liabilities 8,989 9,726 Working Capital 10,
Slide 23: Summary
Invest in one of the few public company IoT pure plays ▪ Established global IoT solutions provider with blue chip customer base ▪ Seasoned leadership team w/ significant enterprise experience ▪ Pursuing fast growing IoT market with double digit CAGRs ▪ MACH10 platform and related software applicatio
Slide 24: Lantronix Contact
LANTRONI . DO MORE. investors@lantronix.com
Slide 25: Non-GAAP Reconciliation
25 (In thousands) Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY16 FY17 FY18 GAAP Net Income (Loss) $ (52) $ (641) $ 225 $ 344 $ 752 $ (1,962) $ (277) $ 680 Non - GAAP Adjustments: Share - based Compensation 267 272 310 295 292 870 912 1,169 Depreciation and Amortization 139 117 109 110 106 759 594 442