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Conference Call Participants

Joseph Vruwink – Robert W. Baird & Co. Incorporated, Research Division
Brian Peterson – Raymond James & Associates, Inc., Research Division
Hoi-Fung Wong – Oppenheimer & Co. Inc., Research Division
Ryan Powderly-Gross – Barclays Bank PLC, Research Division
Alexei Gogolev – JPMorgan Chase & Co, Research Division
David Windley – Jefferies LLC, Research Division
Rishi Jaluria – RBC Capital Markets, Research Division
Tyler Radke – Citigroup Inc., Research Division
Jailendra Singh – Truist Securities, Inc., Research Division
Craig Hettenbach – Morgan Stanley, Research Division
Andrew DeGasperi – BNP Paribas, Research Division
Dylan Becker – William Blair & Company L.L.C., Research Division
Tamjid Md Moinuddin Chowdhury – Guggenheim Securities, LLC, Research Division
William Fitzsimmons – Piper Sandler & Co., Research Division
Ryan MacDonald – Needham & Company, LLC, Research Division
Scott Schoenhaus – KeyBanc Capital Markets Inc., Research Division

Presentation

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

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. 

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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.