Tuesday 23 August 2016

The joke that $LTRX called an earnings call is catalyst for a short tomorrow


The joke that $LTRX called an earnings call is catalyst for a short tomorrowbyosirustwits
So in short we made less money this year than last but got a $2 million Equity investment….so they covered debt and got shares?

Overall demand for their products have declined (might be because the Soc is only 256kb SRAM and just 512kb for flash competitor 10/100Base-T Ethernet Up to 640 KB SRAM for data, 1 MB flash memory for program storage and 2 MB serial flash for mass storage Up to 32 GPIO lines and 6 serial ports so already seeing this lag behind) which is a reduction of 5% but that is nearly a million dollars in cash flow comparison to prior year. This doesn’t add up.

Focus isn’t even on 2016 hence the weakest guidance I have heard/read in a long time and basically said this year is a wash but hold on for next year we only have 6million in cash but at the rate this will be 2.5
Non-GAAP net income was $121,000 or $0.01 per share for the fourth quarter of fiscal 2016 compared with a non-GAAP net loss of $575,000 or $0.04 per share for the fourth quarter of fiscal 2015 and non-GAAP net income of $189,000 or $0.01 per share for the third quarter of fiscal 2016.
Now turning to the full fiscal year, net revenue for the fiscal year ended June 30, 2016 was $40.6 million compared with $42.9 million for the fiscal year ended June 30, 2015. The 5% decline in total net revenue was primarily due to an 11% decline in legacy product sales, which was partially offset by 27% growth in new product sales.Gross profit as a percentage of net revenue for the fiscal year ended June 30, 2016 was 47.7% compared with 47.3% for fiscal year ended June 30, 2015. Looking forward to fiscal 2017, we expect gross margins to remain fairly stable.

Now turning to the balance sheet, cash and cash equivalents were $6 million as of June 30, 2016 compared with $5 million as of June 30, 2015. The increase in cash was primarily related to a $2 million equity investment from Hale Capital Partners in June and a $2.9 million reduction in net inventory. Sequentially net inventory decreased by $691,000 from the prior fiscal quarter. Working capital was $9.1 million as of June 30, 2016 compared with $7.9 million as of June 30, 2015. As of June 30, 2016 we had no borrowings on our line of credit.
Now looking forward, to-date most of the cost related to the launch of our New India Software Lab and the addition of sales and marketing resources has been self-funded by making tough choices and reallocating resources. As we continue to execute on our key strategic objectives during fiscal 2017, we expect to see some increase in operating expenses in support of these activities.
During the quarter, the new excitement and focus in our sales team translated into improved sequential results from all regions. We continue to invest in our sales force initiatives and we’ve recruited a number of new talented people to support our worldwide business. While it will take time for new sales resources to have an impact on results, I believe that we are off to a good start.
On the marketing front, we launched several new outbound campaigns that have already helped to contribute to increase demand for our SLC 8000 product line. Combined with our sales efforts, SLC 8000 revenues grew more than 200% over the fourth quarter of fiscal 2015, and we're up approximately 60% from the first half of fiscal year 2016.
Simply put we are in the business of delivering secure data access and management solutions for IoT and IT asset. Whether it is an electronics embedded IoT gateway that helps to securely connect a wireless cash register to the store for a sidewalk sale or an IoT device gateway that used to manage and access a water irrigation system in the city park or an IT management appliance that helps to bid the IT admin make sure that its network is operating smoothly 24/7 from anywhere
We fully anticipate we would likely encounter setbacks along the way but we are aligned on our plan for fiscal year 2017and have the conviction to invest in our strategy even at the times we have to trade up short term gains.
The journey is just beginning for us to build the new IoT data access and management solutions that will contribute to our long-term growth strategy. We believe that we have identified some interesting opportunities where we can provide new offerings that leverage our IoT know how and existing routes to market, whiles at the same time solve the bigger piece of the IoT problem. We have studied the market and believe we can offer a unique set of solutions with the different approach than others are using in the marketplace today. 


READ it yourself http://seekingalpha.com/article/4001678-lantronixs-ltrx-ceo-jeff-benck-q4-2016-results-earnings-call-transcript?part=single
IOT was the rage…2 years ago everyone is partnered or announcing partnerships and just now you are moving your focus to this but not till 2017.

After the call this began to sell off so to me it is not an earnings winner but tomorrow tells the story because it is upto the market to determine winners and losers.


So based on this crappiest of ER calls I am giving my first SHORT of the summer I know some who read this will short his company back down the manipulated mountain it climbed and I will be with you. Do you own DD and know that I have haters who will try to prevent this trade from being successful.

So to them I say watch the video below





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