Lantronix, Inc.

Good day, and welcome to the fiscal 2025 second quarter results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Brent Stringham, Chief Financial Officer. Please go ahead.

Good afternoon, and thank you for joining our quarterly earnings call. Joining me on the call today is our President and Chief Executive Officer, Salil Alseray. A live and archived webcast of today's call will be available on the company's website. In addition, you can find the call-in details for the phone replay in today's earnings release. During this call, Management may make forward-looking statements which involve risks and uncertainties that could cause our results to differ materially from management's current expectations. We encourage you to review the cautionary statements and risk factors contained in the earnings release, which was furnished to the SEC today and is available on our website, and in the company's SEC filings, such as its 10-K and 10-Qs. Lantronics undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances. Please refer to the news release and the financial information in the Investor Relations section of our website for additional details that will supplement management's commentary. Furthermore, during the call, the company will discuss non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use. With that, I'll now turn the call over to Saleel.

Thanks, Brent, and thank you, everyone, for joining us on the call today. We reported revenue of $31.2 million for the second quarter of fiscal 2025, and our non-GAAP EPS was 4 cents. Both metrics were solidly within the guidance range. Brent Stringham, a newly appointed CFO, will be providing more details on the second quarter financial results shortly. On the call today, I would like to cover four topics briefly with you. An update of our NetCom acquisition, which closed in late December. Expected growth of the edge AI market and comments from CES in Las Vegas. A strengthening relationship and AI developments with Qualcomm. and an update of our internal cost-saving initiatives. First, we are pleased with the strategic acquisition of Netcom for $6.5 million, which expands our Connect business with 4G and 5G gateways. The integration process is going well, and we are working closely with our supply chain partners to fill orders for their blue-chip customers. We recently met with several key customers at CES, including Vodafone, Netcom's largest customer. We believe we are off to a good start and are excited about the growth prospects for the business. Australia and New Zealand present greenfield opportunities for us, and we're exploring new cross-selling opportunities for Lantronics. To help us grow our Connect product offerings and integrate Netcom's gateway line, we hired Daniel Kwan to head up our industrial IoT group. Daniel will play a pivotal role in integrating AI into our new IoT devices and gateways for industrial and enterprise customers. With over 20 years of experience in industrial IoT and wireless communications, including his most recent role as Vice President and General Manager at Mutti Tech Systems in Minnesota, we are delighted to have him join the team. Second, a recent Gartner report highlights a significant shift towards edge computing. By 2025, 70% of data is expected to be captured at the edge of the network, up from 25% in 2018. Additionally, more than 50% of enterprise-generated data will be processed outside traditional data centers by 2028, as compared to only 25% in 2018. This trend represents a substantial market opportunity with AI and machine learning, projected to be a $76 billion market by 2031. Lantronics is strategically positioning itself to capitalize on this megatrend by focusing on compute and connect at the edge. Through both organic growth and strategic acquisitions, Lantronics aims to be the picks and shovels of the edge AI build-out. We provide the necessary hardware, software, and services to enable edge AI applications, helping customers deploy IoT edge solutions more efficiently. We showcased our edge intelligence technology to our key customers and partners at CES and received enthusiastic feedback. Third, we continue to strengthen our strong collaboration with Qualcomm on edge intelligence and some broader AI initiatives. For example, we are integrating Qualcomm's advanced AI frameworks into our Landtronics edge AI systems to enhance modeling and real-time analytics. We are positioned as one of Qualcomm's key partners for Edge AI, supporting their AI Hub program and their expansion into mid-tier and enterprise customers. For example, new opportunities include working on prototype solutions for banking institutions to test customer traffic analytics, working with an electronics manufacturer for quality control and predictive maintenance, and working with a large agriculture customer to explore real-time monitoring and maintenance for advanced farming equipment. While we invest in Edge AI solutions, we remain very focused on securing new customers and design wins. Several of note to share are, in out-of-band management, we are shipping to a large enterprise-ready AI data center business, that is deploying our top-of-rack solution, including hardware, software, and services that enable out-of-band management for remote configuration, fast recovery, and maintenance of the customer's AI cloud servers. This is critical for maintaining access to their assets at all times. In compute, we recently secured a design win with a U.S.-based drone manufacturer. We are providing our production-ready computing modules that are embedded in the drones for short-range reconnaissance by the military. The system is TAA compliant. In Connect, we are building on our strong relationship with the leading telecom provider to deliver gateway and routers to manufacturers of critical infrastructure assets such as generators and power plants. Our intelligent gateway allows customers to increase the operational readiness, reducing operating costs, and improving alerts and reporting. Finally, regarding the cost reduction initiatives we spoke about last quarter, I'm pleased to report that we are on track and made good progress in the fiscal second quarter. These initiatives are now substantially complete. Our process of consolidating our seven geographic locations down to four centers of excellence is progressing with Taipei for operations and hardware, Hyderabad for software and firmware, Vancouver for software and Qualcomm initiatives, Minneapolis for operations, and United States certified warehousing. We are making these changes to better serve our customers, help our future growth initiatives, and streamline operations. In addition to the four centers of excellence, we're retaining a small administrative head office nearby. With that, I will now turn the call over to Brent to provide you with the quarterly financial review.