Lantronix, Inc. · NASDAQ:LTRX
Lantronix — Investor Presentation (June 2019)
22 slides from Lantronix's investor presentation, Jun 4, 2019
Slide 1: Investor Presentation June 2019
Investor Presentation June 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: Secure Data Access & Management Solutions for Industrial IoT
OUR MISSION CREATING SECURE DATA ACCESS & 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 applicati
Slide 4: 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 • Industry leading connectivity solutions that are easy to deploy and accelerate time to market • Millions of devices connected w orldwide • Strong Blue Chip custo
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 04 03 02 01 Increase IoT SAM with the Expansion of Enablement Technologies Expand SaaS IoT Platform with New IoT and ITM Applications Grow IoT Revenue with New Gateway Products Pursue Market Share Gains with IT Management Products OUR GROWTH STRATEGY
Slide 7: Strong Base of Global Blue-Chip Customers
what STRONG BASE OF GLOBAL BLUE - CHIP CUSTOMERS Well Positioned in Key Market Segments INTERNET OF THINGS CAGR Embedded Gateways: 13% Device Gateways: 15% INDUSTRIAL ENERGY / UTILITIES HEALTHCARE SMART BUILDING & Energy IT MANAGEMENT CAGR Data Center : 3% Edge Management: 24% FINANCIALS EDUCATION M
Slide 8: Favorable Secular Trends
FAVORABLE SECULAR TRENDS Integration of Renewables & Distributed Energy Rise of Robotics & Automation Connected Healthcare & Remote Patient Monitoring Smart Building Integration Increase Government & Defense Spending M2M, Big Data, Analytics COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 9: The Lantronix Difference
THE LANTRONIX DIFFERENCE Lantronix takes care of IoT connectivity, management and security so our customers can take care of their business Reducing total cost of ownership Reducing OEM time to market COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Industrial hardened solutions 10% 12% 12% 10% 10% 12% 9% 10
Slide 10: The Lantronix Difference in Action
THE LANTRONIX DIFFERENCE IN ACTION Connecting Weighing Scale for Higher Efficiency COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Enabling Secure Smart Meter Integration Increasing Warehouse Efficiency Through Fast Roaming Enabling Secure Medical Device Connectivity Connecting Hospital Devices Securely to
Slide 11: 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 COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Management Software Platform
Slide 12: Broad Suite of IIoT Solutions
Broad Suite of IIoT Solutions IOT GATEWAYS & BUILDING BLOCKS Connectivity Without Complexity IT MANAGEMENT SOLUTIONS Management of Enterprise IT Infrastructure MANAGEMENT SOFTWARE Scalable Software Made Simple COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 13: Lantronix IoT Gateways
LANTRONIX IOT GATEWAYS 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 • Small size ideal for high - volume integration External
Slide 14: Lantronix IT Management
Lantronix IT Management DATA CENTERS & TEST LABS EDGE COMPUTING MANAGEMENT Enterprise Data Centers & Development Labs Retail Store & Branch Offices Remote Sites COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE BRANCH OFFICES
Slide 15: MACH10 Management Software Platform
MACH10 Management Software Platform Recurring Revenue Through SaaS Model Global Device Manager Gateway Central ConsoleFlow for IoT OEMs for Lantronix Gateways for Lantronix Console Managers COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 16: Operating Results
Operating Results COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 17: Selected Fiscal Year and Quarterly Financial Data
SELECTED FISCAL YEAR AND QUARTERLY FINANCIAL DATA $- $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 FY1
Slide 18: Selected Balance Sheet Information
SELECTED BALANCE SHEET INFORMATION (In thousands except price per share data) June 30, March 31, 2018 2019 Cash and Cash Equivalents $ 9,568 $ 18,212 Accounts Receivable, Net 4,244 8,351 Inventories, Net 8,439 9,809 Total Current Assets 23,270 37,695 Current Liabilities 9,726 10,886 Working Capital
Slide 19: Summary
COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE SUMMARY ▪ Established global IoT solutions provider with blue chip customer base ▪ Seasoned leadership team w/ significant enterprise experience ▪ Pursuing fast growing IoT in high reliability end markets ▪ Management software platform and related applications
Slide 20: investors@lantronix.com
investors@lantronix.com COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 21: 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 22: 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