Exhibit 99.1

Lantronix Reports Record Revenue for Fourth Quarter and Full Fiscal 2024

IRVINE, Calif., Sept. 5, 2024 – Lantronix Inc. (NASDAQ: LTRX), a global provider of compute and connectivity IoT solutions, today reported results for its fourth quarter of fiscal 2024.

Net revenue totaled $49.1 million, up 19 percent sequentially and up 41 percent year-over-year.

GAAP EPS of $0.01, compared to ($0.05) in the prior year and ($0.01) in the prior quarter.

Non-GAAP EPS of $0.15, compared to $0.06 in the prior year and $0.11 in the prior quarter.

Business Outlook

For the first fiscal quarter of 2025, the company expects revenue in a range of $34 million to $38 million and non-GAAP EPS of $0.07 to $0.11 per share.

Conference Call and Webcast

Management will host an investor conference call and audio webcast on Thursday, Sept.5, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its results for the fourth quarter of fiscal 2024 that ended June 30, 2024. To access the live conference call, investors should dial 1-844-802-2442 (US) or 1-412-317-5135 (international) and indicate that they are participating in the Lantronix Q4 FY 2024 call. The webcast will be available simultaneously via the investor relations section of the company’s website.

Investors can access a replay of the conference call starting at approximately 7:00 p.m. Pacific Time on Sept. 5, 2024, at the Lantronix website. A telephonic replay will also be available through Sept. 12, 2024, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada toll-free at 1-855-669-9658 and entering passcode 3146069.

About Lantronix

Lantronix Inc. is a global provider of compute and connectivity IoT solutions that target high-growth industries, including Smart Cities, Automotive and Enterprise. Lantronix’s products and services empower companies to achieve success in the growing IoT markets by delivering customizable solutions that address each layer of the IoT Stack. Lantronix’s leading-edge solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

Discussion of Non-GAAP Financial Measures

Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Non-GAAP net income consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

Non-GAAP EPS is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

Forward-Looking Statements

This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the first fiscal quarter of 2024. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand;  our ability to successfully implement our acquisitions strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2023, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 12, 2023, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed with the SEC on May 2, 2024, including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

© 2024 Lantronix Inc. All rights reserved. Lantronix is a registered trademark.

Lantronix Investor Relations Contact:

Jeremy Whitaker

Chief Financial Officer

investors@lantronix.com

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LANTRONIX, INC.

Unaudited Consolidated Balance Sheets

(In thousands, except share and par value data)

LANTRONIX, INC.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

LANTRONIX, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

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LANTRONIX, INC.

Unaudited Net Revenues by Product Line and Region

(In thousands)

Exhibit 99.2

Lantronix, Inc.

Fourth Quarter Fiscal 2024 Earnings Call

Prepared Remarks

Introduction: Jeremy Whitaker

Good afternoon everyone and thank you for joining our quarterly earnings call. Joining me on the call today is our President and Chief Executive Officer, Saleel Awsare.

A “live” and archived webcast of today’s call will be available on the company’s website. In addition, you can find the call-in details for the phone replay in today’s earnings release.

During this call, management may make forward-looking statements which involve risks and uncertainties that could cause our results to differ materially from management's current expectations. We encourage you to review the cautionary statements and risk factors contained in the earnings release, which was furnished to the SEC today and is available on our website, and in the Company’s SEC filings such as its 10-K and 10-Qs. Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances.

Please refer to the news release and the financial information in the investor relations section of our website for additional details that will supplement management’s commentary.  

Furthermore, during the call, the company will discuss non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use.

With that, I’ll now turn the call over to Saleel.

Saleel:   Thanks Jeremy and thank you everyone for joining us on the call today.

I am pleased to report record revenue of $49.1 million for the Fourth Quarter of FY 2024, a year-over-year increase of 41% compared to the same period of 2023, and a sequential increase of 19% compared to the March quarter. Non-GAAP EPS in FYQ4 grew 150% compared to the same period last year, demonstrating the leverage in our operating model as revenue grows.

Jeremy will provide you with more details and analysis on Fiscal Year 2024 and the Fourth Quarter financial results shortly.

At Lantronix, we enable Edge Intelligence with our Compute and Connect solutions, allowing our customers to improve both their operational efficiency and real-time decision making.

We understand the complexity of Edge Compute requirements and we provide our customers with complete solutions including hardware, software, device management, and design services. Because our offerings are differentiated, sticky, and help our customers solve problems, we’re able to achieve a relatively higher value for these solutions in the marketplace.

We remain focused on three key vertical markets – Smart Cities, Automotive, and Enterprise – that have double digital growth rates, favorable secular trends, and a combined Serviceable Addressable Market of approximately $8.5 billion representing a tremendous opportunity for Lantronix.

Today, let me start with the Enterprise vertical market.

Our Out-of-Band Management Solutions business is performing very well and grew more than 70% from Fiscal year 2023 to Fiscal year 2024. Our Out-of-Band Management product portfolio makes it easier to securely manage distributed enterprise networks and devices by providing access, resiliency, and tools for daily management tasks and when a disruption occurs. For example, during the global CrowdStrike outage that occurred last month, our Out-of-Band Management products with remote access were likely used to reduce network downtime. Our solutions minimize mean time to recovery, allowing network administrators to restore the affected Windows devices, and get businesses back up and running again.

In addition to providing resiliency and recovery during an emergency, our Out-of-Band Management solutions make daily operational tasks easier, more efficient, and highly secure. In fact, our LM-Series products are a leader in the industry with patented automation that can greatly reduce the time to recovery during network outage events – malicious or accidental. Our Out-of-Band Management solutions have higher than our average corporate gross margin and are often combined with other Lantronix products such as IoT Gateways, Media Converters, and Recurring Services.

Also in the Enterprise vertical, we began shipping to our largest Videoconferencing customer that recently announced their next generation product.

In the Automotive vertical, our relationship with Togg continues to progress. The Turkish automotive OEM is looking at new software features that will require higher performance Compute modules, and we’re engaged with them on that.

Togg is also continuing to focus on its goal of introducing its new vehicles into Germany next calendar year. With these developments, we expect continued growth with this customer into the future.

Additionally, we recently secured a design services PO with a large German OEM that is developing a new infotainment platform for long and short-haul trucks. We’re pleased to have entered into this new relationship, and it shows great progress in our longer-term goal of winning new compute designs in our emerging Automotive Infotainment business.

In the Smart Cities vertical, we continue to work closely with our lead Smart Grid customer. During the June Quarter, we shipped just over $21 million in product to them as we expected, and while it will take them some time to digest and deploy this product with their customer, we believe that this can be an ongoing business for several years. In the current quarter Fiscal Q1 2025, we expect to deliver approximately $5million in product to them.

We believe that as the initial inventory is consumed, this business is transitioning into a run-rate business. We’re also very pleased to be partnering with them on expanding into the North American market. They are currently working with a large U.S. Energy company on a similar Smart Grid solution and will be supplying demo units for a Proof of Concept.

Many electrical grids are having to be upgraded significantly given the rise in energy demands, and these networks are requiring real-time decision-making at the Edge, which this device provides. While it’s still early days, we are pleased to be assisting our customer as they enter the large U.S. market.

Lastly, we‘re very excited to be working on new projects with our key partner, Qualcomm, related to Edge AI computing. In late June, we demonstrated our Percepxion Edge AI solution fully integrated with Qualcomm’s AI Hub at Qualcomm’s Industry Analyst Day.

This platform enables deployment of Edge AI solutions for vertical markets such as Smart City and Enterprise.

Qualcomm’s AI Hub, when combined with our Percepxion platform, reduces the complexity of Edge AI applications and simplifies the deployment of AI models.

Building on our platform, we’re closely collaborating with our compute partner who we expect to deploy our software tools at scale to help their developers build leading AI Edge solutions.

While it’s still early days for us, the opportunity in Edge AI for Lantronix lies in providing integrated solutions using our Compute Modules and Edge AI gateways for customers looking to deploy solutions with the compute power needed to drive AI models at the edge of the network. In support of this, we were pleased to see our Percepxion platform win the 2024 Product of the Year Award from IoT Evolution World earlier this month.

To conclude, I’m very optimistic about Lantronix’s future given our strong balance sheet, the momentum in our Enterprise vertical specifically in Video Conferencing and Out of Band solutions, new engagements in Automotive Infotainment, diversifying into additional geographic regions with our Smart Grid customer, and our deepening relationship with Qualcomm enabling us to participate in the new mega trend of Edge AI

We are also mindful of inorganic; accretive growth opportunities and we will pursue those that fit within our portfolio and make economic sense. Our goal is to increase shareholder value - through both organic and inorganic growth.

With that, I will now hand the call back over to Jeremy.

Jeremy:  Thank you, Saleel.

Now I will provide the financial results and some business highlights for our Fiscal year 2024 and fourth quarter before commenting on our financial outlook for the first quarter of Fiscal 2025.

I will start with a brief recap of our Fiscal 2024. We reported record revenue of $160.3 million representing 22% growth from the prior year. In addition, we reported record non-GAAP earnings of $15.4 million representing 83% growth from the prior year. We also reported record non-GAAP EPS of $0.40 per share or 76% growth from the prior year.

The significant growth in non-GAAP earnings demonstrates the leverage in our operating model and our commitment to maintain financial discipline while still delivering record revenue for the fiscal year.

Not only did the team deliver record revenue and earnings, we also improved our balance sheet and liquidity from the prior year. We ended the year with cash of $26.2 million up 95% from the prior year by generating 18.6 million in cashflow from operations. We reduced inventories from $49.7 million in the prior year to $27.7 million, a reduction of 44%. Furthermore, we increased our working capital to $59 million, an increase of 17% from the prior year. In addition, this week we extended the maturity of our $16.2 million term loan by one year further improving our short-term liquidity. With these balance sheet and working capital improvements, we remain well positioned to drive our strategic growth plan.

Now turning to the FQ4 2024 results.

For FQ4 2024, we reported revenue of $49.1 million, slightly above the mid-point of our guide and an all-time record for Lantronix. Revenue was up 19% and 41% from the sequential and year ago periods, respectively.  

IoT System Solutions increased by 33% and 156% from the sequential and year ago periods, respectively. The increase was primarily driven by the continued ramp of production shipments for our lead smart grid customer. In addition, the year-over-year increase was impacted by strong sales of our Out of Band Management products.

Sequentially, Embedded IoT Solutions was down 9% with continued contribution from our lead automotive customer. As expected, we experienced a year-on-year decline in Embedded IoT Solutions as the year ago period included two large customer designs that ended in FQ4 2023.

In FQ4 2024, Software and Services were down from the year ago period, primarily a function of the completion of two large design services projects that transitioned into production during the first half of Fiscal 2024.

GAAP gross margin was 38.1%for FQ4 2024 compared to 40.1% in the prior quarter and 39.5% in the year ago quarter.  

Non-GAAP gross margin was 38.8% for FQ4 2024 compared to 41.0% in the prior quarter and 39.9% in the year ago quarter.  

The decline in gross margin percent was primarily related to charges taken related to the build-up of excess inventory costs. We expect gross margin percent to improve to the low to mid-40s as we don’t expect similar charges and an improvement in product mix in FQ1.

GAAP SG&A expenses for FQ4 2024 were $11.0 million compared with $8.0 million in the year-ago quarter and $9.8 million in the prior quarter. 

GAAP R&D expenses for FQ4 2024 were $5.3 million, compared with $4.9 million in the year-ago quarter and $5.2 million in the prior quarter.  

The increases in SG&A and R&D were driven by our record year for revenue and earnings which resulted in higher share-based and variable compensation during Fiscal 2024 as compared to Fiscal 2023.

In the upcoming quarter, we expect a sequential decrease in non-GAAP operating expenses related to continued cost containment and lower variable compensation.

GAAP net income was $386,000, or $0.01 per share, during FQ4 2024 compared to GAAP net loss of $1.7 million, or $0.05 per share, in the year ago quarter.

Non-GAAP net income increased by 160% from the year ago quarter demonstrating leverage in our operating model and strong cost control. Non-GAAP net income was $5.8 million, or $0.15 per share, and came in at the mid-point of our guide for FQ4 2024 compared to non-GAAP net income of $2.2 million, or $0.06 per share, in the year ago quarter.   

Now turning to our outlook. For the first quarter of Fiscal 2025 we expect:

The sequential decline for FQ1 was anticipated due to the steep ramp of our smart grid customer in FQ4 2024 as discussed on our previous earnings calls. During FQ4 2024, we delivered a record $21.4 million to this customer. In addition, we have received a follow on order from this customer and in FQ1 2025, we expect to deliver to them approximately $5 million of additional product. If we exclude this expected shipment from our FQ1 guidance, the balance of our revenue is expected to grow sequentially by approximately 10%.

As we look forward, we are focused on continued improvement of financial performance by enhancing the operational leverage of the business.

With that, we complete our prepared remarks for today, so I will now turn it over to the Operator to conduct our Q&A session.