LTRX $1.55 ...60c/SHARE CASH...BUYOUT TARGET....EXPANDING GLOBALLY....NEW M2M PRODUCTS FOR SEVERAL INDUSTRIES....PERSISTENT INSIDER BUYING
LTRX 12MONTH TARGET: $6+ (with or without acquisition)
- SOLID BALANCE SHEET (59c/share cash no debt)
- HEAVY INSIDER BUYING (All buys - no sales)
- LOW FLOAT (7 Million shares)
- TRADING AT 80% DISCOUNT OF SECTOR AVERAGES
- GLOBAL EXPANSION: CHINE/ASIA LATEST (see below); Ingram Micro - Europe; Arrow Electronics – Asia Pacific & Latin America; Mouser Electronics – Europe & Asia Pacific, Frys, Data Vision (Americas)
RECENT AUGUST 2013 PRESS RELEASES/DEVELOPMENTS
On August 22-25, Lantronix will serve as the official mobile print sponsor at MacWorld World Asia 2013 in Beijing, China. Lantronix’ participation as a Gold Sponsor of the event, which is expected to attract thousands of attendees, further complements the company’s strategic push to expand its sales footprint into China and the entire Asia Pacific region.
On August 8, the company announced that its award-winning xPrint Server family of products for iPhones, iPads, other smart cellular devices is now be available for purchase in more than 156 cities in China, through the country's largest B2C e-commerce retailer JD. This reseller relationship marks another step in Lantronix efforts to expand its worldwide sales and distribution channels in the Asia Pacific region and build increased awareness of its full range of products.
On August 7, Lantronix announced the global availability of xPico Wi-Fi, a compact, embedded wireless device server designed for easy and fast machine-to-WiFi connectivity, especially in industrial environments. Operators and technicians can now securely access remote machines with a smart phone or tablet without having to go through the entire network. The xPico Wi-Fi will be the foundation platform of many M2M future produts
On August 6, the company announced the opening of a new office in Shanghai, China, further expanding Lantronix reach into one of the fastest growing M2M markets worldwide.
Lantronix (LTRX) designs and manufactures secure connectivity solutions for machine-to-machine (M2M) communications- M2M products include remote controls, computer peripherals, industrial automatic controls, medical devices, car sensors, etc.
Kurt Busch , who came from Mindspeed Technologies with a strong background in new product development took over the CEO position last year. Many of his past colleagues have joined Lantronix to help turn around the corporate culture. With an almost-entirely new management team in place, LTRX is taking an aggressive approach to leverage the untapped potential the company has amassed over the years.
LTRX plans to unlock the value of its proven IP foundation, starting with a commitment to launch one new product each quarter. Management emphasized the great deal of technology within the company which can very quickly be monetized in future versions of existing products, as well as the development of new products.
The company momentum is now readily apparent. Under the new management, LTRX has launched several new products, including the immediately successful "xPrintServer - Network Edition". xPrintServer enables wireless printing from any iPad, iPhone or iPod to virtually any network printer. Since its launch, the company has attracted channel partners to boost product sales.
LTRX differentiates itself from competitors via ease-of-use. Its plug-and-play products bring networking to machines for people that are not networking savvy.
At present, M2M market penetration is in its infancy (only about 1%). Analysts estimate that there are over 50 billion connectable machines today. With the explosive growth in smart phones, cell phones, tablets, sensors, and other devices, LTRX has positioned itself to capitalize on the growing demand in the M2M connectivity market. Taking their share, the company expects to expand its tangible market by over 4x with new products, gains in current segments, and reorganized resources.
Sierra Wireless Inc. (TSX:SW) is looking for acquisitions. Jason Cohenour, Chief Executive Officer of Sierra, said at the earnings conference call, “We also plan to put our strong balance sheet to work in acquiring great M2M companies that help us further expand our position in the value chain, strengthen margins, and drive growth.”
SWIR ----- 8//2/2013 2Q 2013 CC COMMENTS:
Jason W. Cohenour - Chief Executive Officer
Well you know we’ve got plenty of cash. and we’ve been very clear that we plan to deploy a significant amount of that cash and get a driving growth through M&A but we’ve also committed to a balance approach of capital allocation that includes a return of debt to shareholders through buybacks. So as you saw we’ve done some of that. We purchased over a half of million shares in the first half. And that certainly continues to be you know an option for us in the second half notwithstanding the increase in share price recently. But our priority always has been M&A, Mike, and will continue to be. I think we’ve got you know good ideas that are maturing in our following and I suspect we’ll be successful in completing a couple of transactions in the coming periods