Lantronix, Inc. · NASDAQ:LTRX
Lantronix — Merger or Acquisition (July 2019)
15 slides from Lantronix's merger presentation, Jul 10, 2019
Slide 1: Mobility & Wireless Solutions Acquisition Presentation July 2019
Mobility & Wireless Solutions Acquisition Presentation July 2019 Copyright © Lantronix 2018. All rights reserved. COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 2: Forward-Looking Statements
Forward - Looking Statements COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE This presentation contains forward - looking statements, including statements concerning our business and product development plans and strategies, the perceived benefits of our products, and our future growth and financial perform
Slide 3: Our Mission: Creating Secure Data Access & Management Solutions for IoT
OUR MISSION CREATING SECURE DATA ACCESS & MANAGEMENT SOLUTIONS FOR 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 applications and people.
Slide 4: Lantronix Secure Solutions for the Internet of Things
Lantronix Secure Solutions for the Internet of Things • Global provider of secure data access and management solutions for IoT • Connectivity solutions that are easy to deploy and accelerate time to market • Growing Market with m illions of devices connected w orldwide • Strong Blue Chip customer ba
Slide 5: Proven Leadership Team
PROVEN LEADERSHIP TEAM Paul Pickle CEO Michael A. Fink VP, Operations Fathi Hakam VP, Engineering Jon Shipman VP, Strategy David Goren VP, Business Affairs, Legal Tom Morton VP, Human Resources Kevin Yoder VP, WW Sales & Marketing COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Jeremy Whitaker CFO
Slide 6: Our Growth Strategy
COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE OUR GROWTH STRATEGY Organic Growth through cloud based software solutions Organic Growth through innovation and leading - edge hardware products Targeted Acquisitions Expand the Lantronix application capability
Slide 7: Strengthening Financials
STRENGTHENING FINANCIALS $- $10,000 $20,000 $30,000 $40,000 $50,000 FY15 FY16 FY17 FY18 Net Revenue by Product Line IoT ITM Other 47.3% 47.7% 52.7% 55.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $(4,000) $(3,000) $(2,000) $(1,000) $- $1,000 $2,000 $3,000 $4,000 FY15 FY16 FY17 FY18 Gross Margin and P
Slide 8: Lantronix Acquires Asset Tracking, IoT Cellular Gateway and LoRa/LPWAN Capability
LANTRONIX Acquires asset tracking solutions, IoT Cellular Gateway, and LoRa /LPWAN capability Strategically Compelling COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Significant Value Creation Focused End Markets and Complimentary Customer Base Cloud Management Solution
Slide 9: Product Technology Mix
IoT 74% ITM 24% Other 2% Mobility & Wireless Solutions PRODUCT TECHNOLOGY MIX COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Based on LTM Revenues as Reported IoT 62% Mobility Soln 16% ITM 21% Other 1%
Slide 10: Key Market Positioning
KEY MARKET POSITIONING COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE IoT INDUSTRIAL AUTOMATION ENERGY / UTILITIES HEALTHCARE TRACKING & FLEET MANAGEMENT Mobility & Wireless Solutions
Slide 11: Our Growth Opportunity
COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE OUR GROWTH OPPORTUNITY S ou r c e : B e r g I n s i gh t, Oct obe r 201 8 $0 . 8B $2B Million uni t s N u m be r of C onnec t e d D e v i c es, L PWA N S ou r c e : I o T A na lytics, A ugu st 201 8 $7B $0 . 7B Cellular IoT Gateway LP W A N I o T C onnec t i v
Slide 12: Summary
COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE SUMMARY ▪ Expands Lantronix’s HW capability in IoT to take advantage of high growth applications specifically in Cellular and LPWAN. ▪ Adds asset tracking software to the portfolio ▪ Significant cross sell opportunity into a complimentary customer set ▪ Transa
Slide 13: investors@lantronix.com
investors@lantronix.com COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 14: Non-GAAP Net Income Reconciliation
(In thousands) Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 FY16 FY17 FY18 GAAP Net Income (Loss) $ 344 $ 752 $ (83) $ 277 $ 857 $ (1,962) $ (277) $ 680 Non - GAAP Adjustments: Share - based Compensation 295 292 478 451 331 870 912 1,169 Depreciation and Amortization 110 106 105 114 122 759 594 442 Inter
Slide 15: Selected Income Statement Information
(In thousands) Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 FY16 FY17 FY18 Net Revenue $ 11,601 $ 12,037 $ 12,279 $ 12,114 $ 12,334 $ 40,592 $ 44,730 $ 45,580 Gross Profit $ 6,584 $ 6,876 $ 6,741 $ 6,661 $ 7,090 $ 19,378 $ 23,580 $ 25,368 % of Net Revenue 56.8% 57.1% 54.9% 55.0% 57.4% 47.7% 52.7% 55.7% G