Lantronix to digitize 50,000 backup power systems for major US carrier

IRVINE, Calif. - Lantronix Inc. (NASDAQ:LTRX), a $100 million market cap technology company that InvestingPro analysis suggests is currently undervalued, has secured a multi-year agreement with a Tier-1 U.S. mobile network operator to manage more than 50,000 backup power systems at wireless cell sites across the country, according to a press release issued Thursday.

The deployment will use Lantronix’s Edge gateways and cloud-based software to enable remote monitoring of backup generators that maintain mobile service during power outages. Volume shipments have already begun for the company, which maintains a healthy balance sheet with a current ratio of 2.68 and operates with moderate debt levels.

The technology will monitor generator health metrics including fuel levels, battery status, oil pressure, and coolant temperature in real time, allowing for data-driven maintenance rather than manual inspections.

"This win positions Lantronix as a key player in the digital transformation of telecom infrastructure," said Kurt Hoff, chief revenue officer for Lantronix, noting that the company was selected from more than 20 competitors.

The solution aims to improve network resilience by increasing uptime of backup generators that support connected devices ranging from smartphones to critical infrastructure. The system provides 24/7 monitoring with automated alerts for outages or security threats.

According to the company, the technology will reduce operational costs by minimizing manual site visits while enhancing network reliability through remote oversight.

Lantronix’s FOX Series gateways and Percepxion platform provide the technical foundation for the monitoring system, which can also be expanded to oversee HVAC systems, power regulators, and battery backup banks.

The backup generators are critical for maintaining uninterrupted mobile service during power outages, supporting communication devices and public safety systems. With annual revenue of $143 million and a gross margin of 41%, Lantronix shows promising fundamentals. InvestingPro analysis reveals 12 additional key insights about Lantronix’s growth potential and market position, available exclusively to subscribers.

In other recent news, Lantronix Inc. reported its third-quarter fiscal year 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $0.03, missing the forecasted $0.08, and reported revenue of $28.5 million, below the expected $34.09 million. This shortfall was partly attributed to Gridspertise, a major customer, pausing procurement due to excess inventory. Lantronix’s performance in the EMEA region also declined by 67% year-over-year, influenced by production issues related to Togg EV. In response to these challenges, Lantronix is shifting its focus towards edge AI and compute applications, supported by early successes in this area. Additionally, Needham analysts have adjusted their price target for Lantronix to $4.50 from $5.50, while maintaining a Buy rating. The company’s fourth-quarter guidance reflects a cautious approach amid the broader macroeconomic environment and ongoing customer challenges. In a separate development, Lantronix appointed Sailesh Chittipeddi, Ph.D., as an independent director to its Board, bringing extensive experience in industrial, IoT, and infrastructure sectors.

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