Operator

Good day, and welcome to the Lantronix 2026 Fourth Quarter Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. Brent Stringham, Chief Financial Officer. Please go ahead.

Brent Stringham
Chief Financial Officer

Good afternoon, everyone, and thank you for joining our fiscal fourth quarter earnings call. Joining me today is our President and Chief Executive Officer, Saleel Awsare. 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, we may make forward-looking statements, which involve risks and uncertainties that could cause our results to differ materially from current expectations. We encourage you to review the cautionary statements and risk factors contained in today’s earnings release, which was furnished to the SEC and is available on our website and other SEC filings such as our 10-K and 10-Qs.

Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances. Additionally, during the call, we 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

NEW YORK — The Dow Jones Industrial Average was roughly flat Wednesday, edging up just 15.42 points, or 0.029%, to 53,592.82 as of 9:55 a.m. EDT, as investors digested a fresh inflation reading and braced for Nvidia’s highly anticipated earnings report due after the closing bell, a release widely viewed as a key barometer for the broader artificial intelligence trade.

U.S. stocks traded largely flat Wednesday morning following the release of the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, which showed inflation remained sticky heading into the central bank’s Jackson Hole gathering later this week. According to Yahoo Finance, the S&P 500 dipped just below the flat line while the tech-heavy Nasdaq Composite fell 0.1%, pulling back modestly after posting broad gains during Tuesday’s session. Economists had expected core PCE inflation to hold steady at 3.3% for the month, unchanged from the prior reading, according to AOL’s markets coverage.

One notable mover Wednesday morning was Meta Platforms, whose shares jumped in early trading after the company agreed to settle a major social media addiction trial for approximately $16.7 billion. According to Yahoo Finance, the case centered on allegations brought by 29 states that Meta had designed its products specifically to hook young users, misled consumers regarding platform safety, and improperly collected personal data from minors. The settlement resolves what had been one of the most closely watched pieces of litigation targeting the social media industry over child safety concerns.

Wednesday’s session followed a stronger showing Tuesday, when the Dow notched its third consecutive winning session, closing up 160.24 points, or 0.3%, at 53,577.40, according to CNBC. The S&P 500 rose 0.32% Tuesday to close at 7,677.28, while the Nasdaq Composite advanced 0.66% to 26,151.30, buoyed by a rally in semiconductor stocks as investors positioned ahead of Nvidia’s results. Treasury yields extended their decline for a second consecutive day Tuesday, with the benchmark 10-year yield falling more than 7 basis points to 4.625%, continuing a retreat that began Monday after CNBC reported the Treasury Department could tap its roughly $1 trillion General Account to help fund its ongoing bond-repurchase program. West Texas Intermediate crude futures dropped more than 3% during Tuesday’s session.

Nvidia shares rose 2% ahead of Wednesday’s results, snapping a seven-day losing streak that had weighed on the broader technology sector heading into the report, according to Yahoo Finance. The chipmaker’s quarterly earnings have increasingly become a closely watched market event, functioning as a real-time gauge of investor confidence in the durability of the broader AI infrastructure buildout. Expectations heading into the release remain elevated, with investors increasingly focused not just on Nvidia’s revenue growth but on companies’ broader ability to generate tangible returns on their massive AI-related capital investments.

Tuesday’s gains came even as trade tensions between the United States and Canada continued escalating. According to Yahoo Finance, investors largely brushed aside concerns over new U.S. trade measures against Canada, even as Canada’s Finance Department announced retaliatory tariffs in response to the 50% duties the Trump administration imposed on Canadian goods over the weekend. That trade dispute followed the breakdown of negotiations between the two countries and has continued to simmer in the background of broader market sentiment this week.

Separate economic data released Tuesday pointed to growing pressure on American consumers. Both new home sales and a measure of consumer confidence fell to their lowest levels since January, according to Yahoo Finance, as elevated cost-of-living pressures continued weighing on household spending decisions. That data adds further context ahead of Federal Reserve Chairman Kevin Warsh’s keynote address at the Jackson Hole Economic Policy Symposium later this week, a speech markets are watching closely for signals regarding the central bank’s approach to interest rates under its new leadership.

Retail and consumer-facing stocks also factored prominently into Tuesday’s trading. DICK’S Sporting Goods shares sank 30% after the retailer missed second-quarter expectations and slashed its full-year outlook, citing challenging conditions across the broader athletic footwear and apparel marketplace, according to Yahoo Finance. Software companies including Intuit and nuclear energy company Oklo were also among the names reporting earnings this week, providing investors with additional reads on the health of the technology and energy sectors respectively as the busy end-of-August earnings stretch continues.

Wednesday’s inflation data arrives at a particularly sensitive moment for markets given the confluence of upcoming catalysts. Beyond Nvidia’s earnings and Wednesday’s PCE reading, the market’s attention remains squarely fixed on Warsh’s Friday appearance at Jackson Hole, an event that will mark his first major public address since taking over as Fed chairman. Investors are looking for clarity on both the central bank’s near-term policy trajectory and Warsh’s broader communication style, given his reputation for offering less conventional forward guidance than some of his predecessors.

With Nvidia’s results due after Wednesday’s closing bell, alongside continued monitoring of the U.S.-Canada trade dispute and mounting anticipation ahead of Warsh’s Jackson Hole remarks, investors are likely to see continued volatility across markets through the remainder of the week as each new data point and corporate report gets weighed against the broader, still-unresolved questions surrounding both the durability of the AI-driven technology rally and the path of Federal Reserve policy heading into the fall.

Thailand’s electronics sector has secured over $30.5 billion (1 trillion baht) in investment since 2023. Roughly a third of this capital—exceeding $10.1 billion (331 billion baht) across 224 projects—is concentrated in printed circuit boards (PCBs) and electronic components, driven by global manufacturers scaling their footprint in AI hardware and advanced semiconductor packaging across Southeast Asia.

The investment momentum takes center stage at the Thailand Electronics Circuit Asia (THECA 2026) summit at Bangkok’s BITEC exhibition center, which convenes more than 300 global tech enterprises and 7,000 international delegates across 40 nations. The summit’s program includes more than 60 conference sessions spanning AI infrastructure, the semiconductor ecosystem, photonics, advanced packaging, PCBs, and electronics manufacturing services. The event reinforces the accelerating realignment of critical electronics manufacturing toward Southeast Asia amid ongoing global supply chain diversification.

The technological drive comes as Thai policymakers accelerate structural reforms aimed at overcoming the middle-income trap, lifting the country’s global competitiveness ranking into the world’s top 20, and driving annual gross domestic product growth.

With the electronics sector serving as a primary economic engine, the Thailand Board of Investment (BOI) is shifting its focus from basic capital attraction to maximizing national competitiveness. The agency’s four-pillar framework prioritizes high-value and high-potential sectors, enhances Thailand’s readiness for leading multinationals, deepens local economic benefits by upskilling the workforce and fortifying domestic supply chains, and builds international cooperation to connect Thai firms to global production networks.

“The investments flowing into Thailand’s electronics sector today are fundamentally different from those of three decades ago,” said Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI). “They are driven by frontier technologies, proprietary knowledge, and highly skilled labor. Our objective is not merely keeping pace with global technology, but anchoring Thailand as an indispensable co-creator of the future global supply chain.”

Thailand’s selection to host the 17th Electronic Circuits World Convention (ECWC17) in August 2027 — a triennial flagship event that rotates among the world’s premier electronics manufacturing economies — further underscores the country’s rising clout in global electronics manufacturing.

Industry leaders note that surging demand for edge computing, smart mobility, and artificial intelligence is reshaping regional manufacturing footprints.

“In an era dominated by rapid breakthroughs in AI, advanced packaging, and semiconductors, competitive advantage is no longer determined by brute manufacturing capacity alone,” said Mr. Canice Chung, Chairman of the Hong Kong Printed Circuit Association (HKPCA), a co-organizer of the event. “It hinges on international knowledge transfer, cross-border research cooperation, and developing specialized technical talent.”

Operator

Thank you for standing by, and welcome to the Oneview Healthcare plc HY ’26 Half Year Results Call. [Operator Instructions] I’d now like to hand the conference over to Mr. James Fitter, CEO. Please go ahead.

James Fitter
CEO & Executive Director

Thanks very much, and good morning to everyone in Australia, good afternoon to those joining from the United States, and good evening to those joining this late hour here in Dublin, Ireland. First of all, I’d like to, as usual, just draw your attention to the legal disclaimer and particularly to our comments around forward-looking statements. I’d also like to remind everyone that we are a calendar year company, so we’re reporting for the first half of 2026 for the 6 months ended June 30 and that our reporting currency is euros. I am joined here in Dublin by Darragh Lyons, our Chief Financial Officer, and Toni Pettit, our Company Secretary, and thank you both for joining me this evening.

So in terms of agenda, as usual, we’ll start with the financial performance. We will look at commercial momentum, updates on product and innovation, the outlook and obviously save some time for questions at the end.

So first half of 2026 has been a period of great progress on our path to scalable growth. Our recurring revenue, which is the true measure of any software business, grew by 13% year-over-year. Our gross margin very pleasingly jumped 9 points from 61% to 70%, offsetting the impact of the decline in nonrecurring revenue, which continues to be lumpy and volatile. In March this year, we completed a $19 million placement in

Federal authorities said an American Airlines flight was abruptly halted Wednesday when two of the aircraft’s tires suddenly blew out as the jet was preparing for takeoff from Chicago — marking a major escalation in a growing number of similar incidents this month.

The incident happened when American Airlines Flight 3280, a Boeing 737, was taxiing at Chicago O’Hare International Airport Wednesday afternoon, the Federal Aviation Administration (FAA) said. 

The flight was bound for Charlotte, North Carolina, according to the air carrier.

“Shortly after ​pushing back ​from ​the gate ​at ​Chicago ​O’Hare ​International Airport ​(ORD), American Airlines flight 3280 experienced a tire ​issue on ​the taxiway,” American Airlines told FOX Business. 

Officials said passengers deplaned via stairs and were safely bused to the terminal. 

TWO PLANES BLOW TIRES WHILE LANDING AT MAJOR U.S. AIRPORT HOURS APART, FAA INVESTIGATING

Aerial view of Chicago O’Hare International Airport. American Airlines Flight 3280 suffered two tire blowouts while taxiing at O’Hare on Wednesday. (Daniel Slim/AFP via Getty Images, File / Getty Images)

Travelers were scheduled to depart shortly afterward on a replacement aircraft, American Airlines said. 

According to FlightAware, the passengers arrived at their destination nearly four hours after their original scheduled landing time.

“​We ​never ​want to ​disrupt ​our ​customers’ ​travel plans, and we apologize for the inconvenience this caused,” the company said. 

The FAA said it will investigate.

The blowout marked the fifth reported tire-related incident this month at the Chicago airport, though no clear explanation has yet been identified. 

Passengers deplaned after the American Airlines jet was halted before takeoff. (Ronen Tivony/NurPhoto via Getty Images, File / Getty Images)

FAA TO CUT FLIGHTS AT MAJOR U.S. AIRPORT TO REDUCE DELAYS

Last Saturday, American Airlines Flight 3199 suffered a tire burst after landing from Phoenix, according to Simply Flying. The incident occurred as the aircraft was taxiing toward the gate, the outlet said.

On Aug. 17, American Airlines Flight 387 reported two blown tires after landing safely, according to the FAA. The flight had arrived from New York’s LaGuardia Airport. 

Wednesday’s tire blowouts delayed travelers nearly four hours and added to a growing string of tire-related incidents at Chicago O’Hare. (Urbanandsport/NurPhoto via Getty Images, File / Getty Images)

Three hours later, United Airlines Flight 739 also reported a blown tire after landing safely, the FAA said. The Airbus A320 had arrived from Omaha, Nebraska. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

On Aug. 13, United Airlines Flight 455 blew a tire during takeoff while headed to Phoenix, FOX 32 Chicago reported. No injuries were reported. 

Chicago O’Hare International Airport did not immediately respond to a request for comment from FOX Business.

King Charles III views Prince Harry’s return to Britain as a genuine opportunity to help repair his younger son’s fractured relationship with Prince William, according to multiple sources close to the royal family, though royal watchers caution the process is likely to take considerable time.

A source told People that the king’s central hope centers specifically on seeing his two sons reconcile, describing the current moment as an especially promising window given how rare such opportunities have been in recent years. “He will want to see his sons together over time. This is the best opportunity we have seen in recent years,” the source said.

The renewed hope for reconciliation follows Harry’s private, emotional reunion with King Charles last month, a meeting that took place at Highgrove House. An ally told People that the king’s relationship with Harry has shown modest but meaningful improvement since that reunion, describing the encounter in positive terms. “Real positive,” the source said of the meeting’s overall effect on the father-son relationship. The same insider indicated the king is looking forward to having Harry nearby, noting that the family’s relocation eliminates the logistical challenge of arranging brief visits or potential meetings whenever the Sussexes previously traveled from California.

A separate source, cited in earlier People reporting, suggested that Harry’s physical presence in Britain represents a structural shift that simply was not possible while he remained based in the United States. “It would never happen with him in America. This gives them the opportunity to try and mend that bridge,” the source said, framing geographic proximity itself as a necessary, if not sufficient, condition for any eventual reconciliation between the brothers.

Despite that cautious optimism from sources close to King Charles, other royal commentators have suggested that any actual repair work between Harry and William remains a lower near-term priority for the Prince and Princess of Wales specifically. Royal expert Emily Nash told HELLO! during a recent episode of “A Right Royal Podcast” that William and Catherine appear focused on more immediate practical concerns rather than actively pursuing reconciliation with Harry at this stage. “From people I’ve been speaking to who know them, I think they’re very much working on the basis of let’s get the children settled, let’s get started on what we want to do, and then the rest is something to consider down the line,” Nash said.

That characterization suggests a meaningful gap between the king’s stated hopes for his sons and the Wales household’s own current priorities, which appear centered on their own family’s stability, their children’s schooling and their continued royal duties rather than any active effort toward reconciliation with Harry in the near term.

The renewed attention to the brothers’ relationship comes as Harry, Meghan Markle and their children, Archie and Lilibet, prepare to relocate to Britain for an extended stay, with the children set to begin school there in September. That move places Harry back in the country for the first time in years on anything approaching a long-term basis, a shift that eliminates the physical distance that has, since 2020, made it relatively easy for the two branches of the royal family to avoid direct contact with one another.

William and Harry have reportedly remained largely estranged since at least 2022, with multiple royal sources previously indicating the brothers have had little to no direct communication in the years since Harry and Meghan stepped back from their roles as senior working royals. That prolonged estrangement, combined with the public nature of the grievances Harry has aired in his 2023 memoir “Spare” and the couple’s 2021 interview with Oprah Winfrey, has left many royal watchers skeptical that proximity alone will be sufficient to meaningfully repair the relationship, even as King Charles reportedly views the current moment as uniquely promising.

The king’s hopes for his sons’ reconciliation reflect a recurring theme that has surfaced in earlier royal reporting as well, including references in Harry’s own memoir to Charles pleading with his sons following Prince Philip’s 2021 funeral not to let family tensions consume his remaining years. With Charles continuing treatment for cancer first diagnosed in 2024, sources have suggested the king’s desire to see his family reunited carries particular urgency given his own health situation.

As Harry and his family settle into their extended UK stay in the coming weeks, the central unanswered question remains whether King Charles’ hopeful framing of the moment as “the best opportunity we have seen in recent years” translates into any genuine, direct engagement between Harry and William, or whether the brothers’ relationship continues along its current trajectory of limited to no contact despite their shared presence in the same country for the first time in years. Royal commentators including Nash have suggested that any movement toward reconciliation, if it comes at all, is likely to unfold gradually and privately, rather than through any near-term public gesture between the two brothers.

Flash flooding kills more people in the United States each year than tornadoes, hurricanes or lightning, yet many Americans significantly underestimate the danger this common weather hazard poses. Here are 10 facts about flash flooding, drawn from the National Weather Service, NOAA and the National Severe Storms Laboratory, that most people don’t know.

1. Flash floods can develop in as little as three hours

According to the National Weather Service, a flash flood is defined as flooding that begins within six hours, and often in as little as three hours, of heavy rainfall. That narrow window means water can rise dramatically before residents have any meaningful time to prepare, let alone evacuate.

2. Water can rise dozens of feet in under an hour

The speed at which flash floods develop can be extraordinary. During the deadly July 2025 Texas Hill Country flooding, fast-moving waters along the Guadalupe River rose 26 feet in just 45 minutes before dawn, washing away homes and vehicles in the process, according to PBS News.

3. Just six inches of moving water can knock you off your feet

Most people fail to appreciate the sheer physical force of moving floodwater, according to NOAA. Just six inches of fast-moving flood water can knock an adult off their feet, 12 inches can carry away a car, and 24 inches of moving water can pick up an SUV or a truck entirely.

4. More than half of all flash flood deaths happen in vehicles

According to SERVPRO, citing National Weather Service data, more than half of all flash flood deaths occur when someone is swept away while driving into flooded roads. NOAA separately notes that nearly half of all flood fatalities specifically are auto-related, and that it takes only 18 inches of water to float a typical vehicle, while just two feet of flowing water is enough to sweep most vehicles downstream entirely.

5. Flash flood deaths outpace both lightning and tornadoes on average

While the exact number of fatalities varies significantly from year to year, the national 30-year average for flood deaths in the U.S. stands at 88 people annually, according to NOAA. That compares with a 30-year average of just 41 deaths from lightning and 68 deaths from tornadoes over the same period, making flooding the deadlier hazard of the three, despite receiving comparatively less public attention than tornado warnings.

6. 2025 brought the most flash flood warnings issued in decades

The National Weather Service issued more than 3,400 flash flood warnings through July 2025 alone, the highest number of warnings issued in a single year since the 1980s, according to WeatherWorks. Some of that increase reflects genuine improvements in forecasting technology and warning capabilities rather than a purely proportional rise in actual flooding events.

7. Dry creek beds and urban pavement dramatically increase flash flood risk

Densely populated areas face elevated flash flood danger specifically because of how much they’ve been paved over, according to NOAA’s National Severe Storms Laboratory. The construction of buildings, highways, driveways and parking lots increases surface runoff by reducing how much rainfall the ground can naturally absorb, directly increasing flash flood potential in cities and towns compared with more rural, undeveloped terrain.

8. Streams routed underground can flood roads and buildings from below

In many cities, streams have been routed underground into storm drain systems rather than left flowing above ground, according to NOAA. During heavy rainfall, those storm drains can become overwhelmed or clogged with debris, causing water to back up and flood nearby roads and buildings even when no visible stream or river is nearby, a risk factor many urban residents remain unaware of.

9. Meteorologists are now using AI to predict where flash floods will strike

Forecasters have developed increasingly sophisticated tools to anticipate flash flooding before it happens, including a system called Multi-Radar Multi-Sensor, or MRMS, which combines data from weather radars, rain gauges, satellites and numerical models into a single, high-resolution real-time picture. Greg Waller, senior coordination hydrologist at NOAA’s West Gulf River Forecast Center, described the life-saving impact of that improved forecasting capability. “Better inputs lead to better public safety. It’s not hyperbolic to say that this advancement in technology as helped save lives. Because it has improved the accuracy of the forecast and improved the lead time,” Waller said. NOAA researchers are now building on that foundation with the Warn-on-Forecast System, which uses artificial intelligence and machine learning to model multiple potential storm scenarios and predict where and how intensely rainfall is likely to fall.

10. Standard homeowners insurance almost never covers flood damage

Many homeowners mistakenly assume their existing insurance policy will cover flood-related losses, but according to SERVPRO, standard homeowner’s insurance typically does not include flood coverage at all. Protecting a home against flood damage generally requires a separate policy, usually purchased through the National Flood Insurance Program, and that program typically carries a 30-day waiting period before coverage takes effect, meaning homeowners cannot simply purchase a policy in the days immediately before a major storm arrives and expect coverage to apply.

Flash floods remain, according to NOAA, “the most dangerous kind of floods, because they combine the destructive power of a flood with incredible speed.” The agency’s guidance for staying safe during flash flood conditions remains consistent regardless of location: monitor NOAA Weather Radio or a trusted news source for real-time updates, move immediately to higher ground if flooding occurs, avoid already-flooded or fast-moving water entirely, and never attempt to drive through a flooded roadway, since the road bed underneath the water may no longer be intact. As NOAA puts it directly in its official guidance to the public, if floodwater rises above the knee while attempting to cross a flowing stream on foot, the agency’s advice is unambiguous: “TURN AROUND DON’T DROWN.”