In a recent filing with the Securities and Exchange Commission, Lantronix Inc. (NASDAQ:), a company specializing in computer communications equipment, announced that board member Christa Steele has decided not to stand for re-election. The announcement was made on Monday, and her departure will take effect at the company’s 2024 annual meeting of stockholders.
Steele’s decision to leave the board was due to her need to focus on other commitments that require her attention. Despite her brief tenure, Saleel Awsare, Lantronix’s President and CEO, praised her contributions, stating, “While Christa’s tenure was short, her experience, perspective and contributions were invaluable in supporting the Company during our inflection point.” He expressed gratitude on behalf of the company and the board for her service.
Steele also commented on her departure, noting the progress Lantronix has made during her time with the company and expressing confidence in its future under Awsare’s leadership.
The company disclosed that following Steele’s departure, the board will be reduced to five directors. This change will be effective as of the date of the Annual Meeting.
This development comes as Lantronix, headquartered in Irvine, California, continues to navigate the competitive landscape of the technology sector. The company, incorporated in Delaware with a fiscal year-end on June 30, is known for its solutions in the computer communications equipment field.
Investors and stakeholders of Lantronix will be watching closely to see how this board transition affects the company’s strategy and governance moving forward. The information for this article is based on a press release statement.
In other recent news, Lantronix, Inc. has seen significant changes in its financial leadership and record growth in its earnings and revenue. The company’s Chief Financial Officer, Jeremy Whitaker, has stepped down, with Stringham stepping in as the Interim CFO. The transition is also being supported by David McLennan, former CFO of Sierra Wireless (NASDAQ:) Inc., who has been engaged as a consultant.
In terms of financial performance, Lantronix has reported a substantial increase in its fiscal year 2024 fourth-quarter revenue and earnings per share (EPS), with a 41% year-over-year increase in its quarterly revenue reaching $49.1 million, and a 150% growth in non-GAAP EPS. For the full fiscal year, Lantronix achieved a revenue of $160.3 million, a 22% growth year-over-year, and record non-GAAP earnings of $15.4 million, up 83% year-over-year.
These recent developments highlight Lantronix’s continued growth in its key vertical markets, such as Smart Cities, Automotive, and Enterprise. The company has also announced a partnership with Qualcomm (NASDAQ:) on Edge AI computing projects and secured significant orders in the smart grid sector. Looking ahead, for the first quarter of fiscal 2025, Lantronix expects revenue to be between $34 million and $38 million, with non-GAAP EPS between $0.07 and $0.11 per share.
InvestingPro Insights
As Lantronix Inc. (NASDAQ:LTRX) navigates this board transition, InvestingPro data provides additional context for investors. Despite the company’s recent challenges, including Christa Steele’s departure from the board, there are some positive indicators. According to InvestingPro Tips, net income is expected to grow this year, and analysts predict the company will be profitable this year. This aligns with the company’s positioning at what CEO Saleel Awsare called an “inflection point.”
However, it’s worth noting that Lantronix’s stock price movements have been quite volatile, which could be influenced by factors such as the recent board changes. The company’s market capitalization stands at $147.42 million, with a revenue of $160.33 million over the last twelve months as of Q4 2024. Notably, Lantronix has shown strong revenue growth, with a 40.52% increase in the most recent quarter.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Lantronix, providing a deeper understanding of the company’s financial health and market position.
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