Bullish indicating open at $55-$60, IPO prices at $37
IRVINE, Calif. - Lantronix Inc. (NASDAQ:LTRX), a technology company with a market capitalization of $122 million and strong liquidity position as indicated by its current ratio of 2.68, on Thursday launched its NTC-500 Series, a rugged industrial-grade 5G router designed to reduce enterprise connectivity costs by eliminating the need for expensive Ethernet infrastructure. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The new router series supports both 5G Non-Standalone and Standalone configurations with 4G-LTE fallback and Dynamic 5G Slicing capabilities. It is compatible with private 5G networks, supporting bands including n48-CBRS, n77 and n78. The product launch comes at a crucial time for Lantronix, which has demonstrated strong recent performance with its stock showing positive returns over the past three months.
According to Daniel Quant, head of Industrial IoT Products and Business Line at Lantronix, the NTC-500 Series "delivers a rugged, globally approved and carrier-certified 5G solution at a breakthrough price point," allowing customers to reduce operational costs while future-proofing their infrastructure investments.
The product launch follows Lantronix’s acquisition of NetComm Wireless and comes as the private 5G market is projected to grow substantially. ABI Research forecasts the market will expand from $2.7 billion in 2025 to $29 billion by 2030. While analysts expect some near-term sales challenges, InvestingPro data suggests the company is positioned for net income growth this year. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
The NTC-500 Series recently received the 2025 Industrial IoT Product of the Year Award from IoT Evolution World.
Key features of the router include high-speed data transfer capabilities for applications like machine vision and remote inspections, low latency for real-time control of robotics and autonomous guided vehicles, and cable-free connectivity that eliminates potentially thousands of dollars in cable installation costs.
The router is designed for deployment across various industrial environments including smart factories, retail locations, mining operations, and construction sites.
Based on a press release statement, the NTC-500 Series supports the latest 3GPP Release 16 5G features and is intended for high-scale industrial deployments requiring reliable wireless communication across large facilities with numerous connected endpoints. With a gross profit margin of 41% and moderate debt levels, Lantronix maintains financial flexibility to support its growth initiatives. Discover detailed insights about Lantronix and 1,400+ other companies through comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Lantronix Inc. reported its third fiscal quarter 2025 earnings, revealing a 2% shortfall in revenue and earnings per share compared to consensus expectations. This underperformance was attributed to Gridspertise, a major customer, pausing procurement due to excess inventory. Additionally, the company’s performance in the Europe, Middle East, and Africa region showed a significant 67% decline year-over-year, partly due to production issues with Togg EV. Needham analysts responded by lowering Lantronix’s price target from $5.50 to $4.50, though they maintained a Buy rating on the stock. In another development, Lantronix has secured a multi-year agreement with a Tier-1 U.S. mobile network operator to manage over 50,000 backup power systems using its Edge gateways and cloud-based software. Furthermore, Lantronix expanded its board of directors, appointing James C. Auker and Sailesh Chittipeddi as new directors. Auker’s appointment follows a cooperation agreement with Chain of Lakes Investment Fund LLC, and Chittipeddi brings extensive experience in industrial and IoT sectors. These recent developments indicate Lantronix’s strategic efforts to enhance shareholder value and navigate current market challenges.
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