Lantronix, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Lantronix, Inc. (“Lantronix” or the “Company”) (NASDAQ:LTRX) securities during the period of May 11, 2023 through February 8, 2024, inclusive (“the Class Period”). Investors have until April 23, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In May 2023, Lantronix forecasted that it would achieve revenue in a range of $175 million to $185 million, as well as non-GAAP earnings-per-share (“EPS”) in a range of $0.50 to $0.60 per share, for its fiscal year 2024 results. The Company repeatedly assured investors and analysts throughout the Class Period that this guidance for fiscal year 2024 remained unchanged, despite knowing that Lantronix’s customers were experiencing elevated levels of inventory for internet of things (“IoT”) products.
On February 8, 2024, Lantronix issued a press release announcing its financial results for the second quarter of its fiscal year 2024. The Company negatively revised its fiscal year 2024 guidance, advising that “the company [now] expects revenue in a range of $155 million to $165 million” and “non-GAAP EPS in a range of $0.35 to $0.45 per share.” On a call with investors and analysts, Lantronix management explained the change as “primarily due to lower expected sales for our embedded IOT solutions as a result of two factors”, namely, “[a] general slowdown in our broad-based channel business as customers work through their inventories, and an embedded compute design win in video applications that was slated for revenue in the second half of fiscal 2024 that pushed into fiscal 2025.” On this news, the price of Lantronix shares declined by $1.89 per share, or approximately 32.5%, from $5.81 per share on February 8, 2024 to close at $3.92 on February 9, 2024.
In May 2023, Lantronix forecasted that it would achieve revenue in a range of $175 million to $185 million, as well as non-GAAP earnings-per-share (“EPS”) in a range of $0.50 to $0.60 per share, for its fiscal year 2024 results. The Company repeatedly assured investors and analysts throughout the Class Period that this guidance for fiscal year 2024 remained unchanged, despite knowing that Lantronix’s customers were experiencing elevated levels of inventory for internet of things (“IoT”) products.
On February 8, 2024, Lantronix issued a press release announcing its financial results for the second quarter of its fiscal year 2024. The Company negatively revised its fiscal year 2024 guidance, advising that “the company [now] expects revenue in a range of $155 million to $165 million” and “non-GAAP EPS in a range of $0.35 to $0.45 per share.” On a call with investors and analysts, Lantronix management explained the change as “primarily due to lower expected sales for our embedded IOT solutions as a result of two factors”, namely, “[a] general slowdown in our broad-based channel business as customers work through their inventories, and an embedded compute design win in video applications that was slated for revenue in the second half of fiscal 2024 that pushed into fiscal 2025.” On this news, the price of Lantronix shares declined by $1.89 per share, or approximately 32.5%, from $5.81 per share on February 8, 2024 to close at $3.92 on February 9, 2024.