8. Lantronix Inc (NASDAQ:LTRX)
Analyst Upside (as of January 11): 44.17%
No. of Hedge Fund Holders: 14
Lantronix Inc. (NASDAQ:LTRX) is a technology company that specializes in providing connectivity solutions for IoT and Remote Environment Management (REM). The company provides various products and services including SaaS, intelligent hardware, and engineering services.
Lantronix is focusing on AI and edge computing and assisting companies with the development of various tech tools. Lantronix helped Misty Robotics Inc. create Misty II, a platform robot that allows developers to create applications. The company has strategic alliances with Cisco, Cypress Semiconductor, Green Hills Software, PTC Inc.’s Kepware, and other technology firms. On January 7, the company successfully assisted Governmentwide Acquisition Contracts (GWACs) with the development of a military-grade gunshot detection system through its chip based on Qualcomm.
Lantronix Inc. (NASDAQ:LTRX) is highly focused on using AI to enhance its operations and so far it has been successful. Lantronix’s partnership with Qualcomm has already led to significant orders, with GWACs gunshot detection system being the latest one. The company is focused on streamlining its product portfolio and reducing operating expenses by almost $4.5 million for fiscal year 2025. Moreover, the company is expanding its market reach in new regions including Australia and New Zealand through the Netcom acquisition, which is projected to add $6 to $7 million in revenue in CY24.
Lantronix’s CEO Saleel Awsare has a huge role in the company’s ongoing success. Awsare received the ‘IoT Company CEO of the Year’ award in the 9th annual IoT Breakthrough Awards program. 180 Degree Capital Corp stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) and its CEO in its Q2 2024 investor letter:
“More recently, we have been working behind the scenes with the management and board of Lantronix, Inc. (NASDAQ:LTRX) on ways to solidify the strong foundation of the company and set it up for success and significant value creation for stockholders in the future. We believe LTRX’s new CEO, Saleel Awsare brings an interesting and successful background to LTRX. What we believe he needed to be in the best position for success were board members who have experience navigating the challenges unique to microcapitalization companies. Following multiple discussions, we introduced Saleel and his board to Narbeh Derhacobian, the former Chief Executive Officer and founder of our former portfolio company, Adesto Technologies, Inc., and one of Adesto’s board members, Kevin Palatnik, who has significant experience as a CFO at multiple related businesses. We were pleased to see that LTRX’s board saw the same value that we do in these individuals, in terms of helping Saleel and his team to have the best opportunities to achieve multiple catalysts that could lead to material increases in value for LTRX and its stockholders.”
