Lantronix, Inc. LTRX has unveiled a case study featuring GWACS Defense Inc., a military defense contractor based in Tulsa, OK. GWACS Defense utilized Lantronix’s Open-Q 8250CS System on Module (SOM), powered by the Qualcomm QCS8250 System-on-Chip (SoC) and Lantronix’s Engineering Services to develop its military-grade gunshot and noise detection system for commercial purposes. The newly developed Acoustic Event of Interest (AEI) platform provides real-time detection of critical sounds, such as gunshots, in public spaces.
By leveraging the Qualcomm QCS8250 SoC and Lantronix’s engineering expertise, GWACS Defense developed a solution that combines precision, connectivity and affordability. The system provides accelerated time to market, scalability for diverse applications and cutting-edge 5G connectivity, creating a cost-effective on-device solution with “military-grade reliability”.
Lantronix’s Open-Q 8250CS SOM, a defense-grade, production-ready system with solid firmware support, played an important role in aiding GWACS Defense transition its military-grade gunshot detection system to the commercial market.
Lantronix, Inc. Price and Consensus
Lantronix, Inc. price-consensus-chart | Lantronix, Inc. Quote
The integration of artificial intelligence (AI) and digital signal processing (DSP) algorithms enables real-time, on-device acoustic detection. Lantronix’s engineering services streamlined development and minimized technical risks. Advanced connectivity options, including Qualcomm’s 5G capabilities, provided ultra-fast, low-latency communications for real-time alerts and secure cloud integration.
Lantronix emphasized that their advanced Internet of Things (IoT) SOM technology enhances scalability and connectivity, making GWACS Defense’s military-grade acoustic safety system accessible to schools, hospitals, municipalities and private enterprises.
LTRX Focuses on Organic & Inorganic Expansion
LTRX continues to add cutting-edge products to its portfolio to drive sales. In October 2024, Lantronix launched SmartLV, an AI-powered IoT Edge Compute Cellular Gateway, targeting low-voltage substations and distribution automation in next-generation smart grids, utilities and industrial applications. With its advanced AI and edge computing capabilities, the SmartLV Gateway aims to deliver unparalleled real-time visibility, control and automation, empowering Distribution System Operators (DSOs) to optimize energy flow, ensure grid stability and manage critical energy infrastructure with unmatched precision.
LTRX is also supplementing its organic growth with acquisitions. In December 2024, the company announced the completion of its acquisition of NetComm Wireless Pty Ltd (“NetComm”), a subsidiary of DZS Inc., for $6.5 million in cash. The deal includes all enterprise IoT business assets of NetComm, along with the assumption of certain liabilities. This acquisition aligns with Lantronix’s strategic focus on the Enterprise and Smart City sectors, bolstering its next-generation 5G capabilities. By integrating NetComm's IoT portfolio, Lantronix aims to strengthen its offerings in critical areas such as infrastructure, asset monitoring and telecommunications.
However, weakness in the IoT System Solutions and Software & Services businesses amid growth in the Embedded IoT Solutions business continues to pose headwinds. In the last reported quarter, Embedded IoT Solutions revenues grew 18% from both the previous quarter and a year ago. IoT System Solutions revenues experienced a 47% decline sequentially and a 1% fall year over year.
The sequential decrease was primarily due to an anticipated $16 million reduction in shipments to a major smart grid customer and a large federal government agency order that did not materialize as initially expected. Also, Software & Services revenues increased 8% sequentially but declined 13% from the year-ago quarter. Stiff competition in the IoT market and the dynamic global macroeconomic backdrop are additional concerns.
LTRX’s Zacks Rank & Stock Price Performance
Lantronix currently carries a Zacks Rank #5 (Strong Sell). Shares of the company have lost 34.1% in the past year against the industry's growth of 17.1%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Intrusion Inc. INTZ, Gilat Satellite Networks Ltd. GILT and RADCOM Ltd. RDCM. INTZ, GILT & RDCM presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
INTZ’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 43.06%. In the last reported quarter, Intrusion delivered an earnings surprise of 16.67%. Its shares have surged 85.2% in the past six months.
The Zacks Consensus Estimate for Gilat Satellite’s 2024 earnings per share (EPS) is pegged at 48 cents, unchanged in the past 30 days. In the last reported quarter, Gilat Satellite delivered an earnings surprise of 75%. Its shares have jumped 41.4% in the past six months.
The Zacks Consensus Estimate for RADCOM’ 2024 EPS is pegged at 80 cents, unchanged in the past 30 days. RDCM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 25.36%. Its shares have surged 55.3% in the past year.
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Lantronix, Inc. (LTRX) : Free Stock Analysis Report
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