Lantronix, Inc. · NASDAQ:LTRX
Lantronix — Merger or Acquisition (July 2019)
15 slides from Lantronix's merger presentation, July 2019
Slide 1: Mobility & Wireless Solutions Acquisition Presentation
Mobility & Wireless Solutions Acquisition Presentation July 2019 COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE 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 and product development plans and strategies, the perceived benefits of our products, and our future growth and financial performance. Any statement relating to our plans, g
Slide 3: Our Mission
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 IoT Market Growth Opportunity Secure Solutions for the Internet of Things Growth and Improvement in • Global provider of secure data access and Operating Model management solutions for IoT • Connectivity solutions that are easy to deploy and accelerate time to market Strong Global Revenue
Slide 5: Proven Leadership Team
PROVEN LEADERSHIP TEAM Paul Pickle Jeremy Whitaker Kevin Yoder CEO CFO VP, WW Sales & Marketing Jon Shipman Fathi Hakam Michael A. Fink VP, Strategy VP, Engineering VP, Operations David Goren Tom Morton VP, Business Affairs, VP, Human Resources Legal COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE 5
Slide 6: Our Growth Strategy
OUR GROWTH STRATEGY Targeted Organic Acquisitions Growth through Expand the Lantronix cloud based application capability software solutions Organic Growth through innovation and leading-edge hardware products COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 7: Strengthening Financials
STRENGTHENING FINANCIALS Net Revenue by Product Gross Margin and Profitability $30,000 Liquidity Line $26,809 $25,545 $50,000 $4,000 60.0% $24,407 $25,000 55.7% $3,000 52.7% 50.0% $40,000 47.3% 47.7% $20,000 $2,000 $18,925 $19,367 $18,212 40.0% $30,000 $1,000 $15,000 $13,544 $- 30.0% $10,391 $10,000
Slide 8: Lantronix Strategically Acquires Mobility & Wireless Solutions
Cloud Management LANTRONIX Solution Strategically Acquires asset tracking Compelling solutions, IoT Cellular Gateway, and LoRa/LPWAN Significant Value capability Creation Focused End Markets and Complimentary Customer Base COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 9: Product Technology Mix
PRODUCT TECHNOLOGY MIX Mobility & Wireless Solutions Other Other 2% 1% ITM ITM 21% 24% Mobility Soln IoT 16% 62% IoT 74% Based on LTM Revenues as Reported COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE 9
Slide 10: Key Market Positioning
KEY MARKET POSITIONING Mobility & Wireless IoT Solutions INDUSTRIAL TRACKING & HEALTHCARE ENERGY / UTILITIES AUTOMATION FLEET MANAGEMENT COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 11: Our Growth Opportunity
OUR GROWTH OPPORTUNITY Cellular IoT Gateway LPWAN IoT Connectivity Million units $7B $2B $0.8B $0.7B Number of Connected Devices, LPWAN Source: IoT Analytics, August 2018 Source: Berg Insight, October 2018 COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE
Slide 12: Summary
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 ▪ Transaction expected to be accretive to non-GA
Slide 13: investors@lantronix.com
investors@lantronix.com COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE 26
Slide 14: Appendix A: Reconciliation of Non-GAAP Financial Measures
APPENDIX A: Reconciliation of Non-GAAP Financial Measures (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
Slide 15: Selected Income Statement Information
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%