Lantronix, Inc. (NASDAQ:LTRX) Q4 2023 Earnings Call Transcript

Jeremy Whitaker: Yes. Starting with channel inventories. We saw several quarters with our inventory in the channel declining at least with our distributors. This quarter, we did see it bump up a little bit, but it is within, I would say, our historical norms. So we’re not seeing elevated inventory at our distributors. We have heard from a couple of customers where they feel like they have inventory that they need to burn through, but it’s not necessarily systematic, I think, in our distributor channel. I think it’s a situation where like a lot of companies with supply shortages and COVID, everybody was — companies were putting more inventory on hand because of the difficulty in getting it. We did mention previously on several calls that coming out of post-COVID, we did see some weakness in certain parts of our business.

That said, most of our growth drivers for fiscal ’24 are really driven by large programs that we’ve won and in particular, Gridspertise and Togg, where we have orders on hand to be able to drive that growth. In addition, we are seeing some new demand being generated from some of our newer product releases in connectivity. In particular, we have a nice opportunity with AT&T that we mentioned on our previous call that’s made some nice progress over the last quarter. And that will also help with the growth next year.

Ryan Koontz : That’s great to hear. And a quick follow-up on the competitive front. Any changes? I’ve heard about a few kind of new entrants kind of coming at this with industrial hard and type products in areas that you play out of Europe and other spots. Are you seeing much of an impact? Or is it a pretty stable competitive landscape?

Jeremy Whitaker: Yes. I think we’re not necessarily seeing any new entrants at this point. With our out-of-band product, with our recent acquisition of Uplogix, we think we’ve got a market-leading product there. On the Qualcomm side with the design services, I think we have a great ability there to differentiate ourselves. And so not necessarily seeing anything new in those areas today.

Operator: Thank you. This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.