Lantronix, Inc. (NASDAQ:LTRX) Q2 2023 Earnings Conference Call February 9, 2023 5:00 PM ET

Company Participants

Rob Adams - Investor Relations

Paul Pickle - President and Chief Executive Officer

Jeremy Whitaker - Chief Financial Officer

Conference Call Participants

Scott Searle - ROTH

Mike Walkley - Canaccord Genuity

Ryan Koontz - Needham & Company

Christian Schwab - Craig-Hallum Capital Group

Operator

Good day, ladies and gentlemen and welcome to the Lantronix, Inc. 2023 Q2 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Rob Adams, Investor Relations. Please go ahead, sir.

Rob Adams

Thank you. Good afternoon, everyone. Thank you for joining the second quarter fiscal 2023 conference call. Joining us on the call today are Paul Pickle, President and Chief Executive Officer; and Jeremy Whitaker, our Chief Financial Officer. A live and archived webcast of today’s call will be available on the company’s website. In addition, you can find the call and details for the phone replay in today’s earnings release.

During this call, management may make forward-looking statements, which involve risks, 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 it is also in the company’s SEC filings such as its 10-K and its 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 some 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 will now turn the call over to Jeremy Whitaker, Lantronix Chief Financial Officer.

Jeremy Whitaker

Thank you, Rob and welcome to everyone joining us for this afternoon’s call. I am going to provide the financial results as well as some of the business highlights for our second quarter of fiscal 2023 before I hand it over to Paul for his commentary.

For the second quarter of fiscal 2023, we reported revenue of $31.5 million compared to $33.7 million for the second quarter of fiscal 2022. Sequentially, revenue was down 1%. GAAP gross margin was 44% for the second quarter of fiscal 2023 which is consistent with the prior quarter and about a 900 basis point improvement from the year ago quarter. Selling, general and administrative expenses for the second quarter of fiscal 2023 were $9.8 million compared with $8.9 million for the second quarter of fiscal 2022 and $9.2 million for the first quarter of fiscal 2023.