IoT Approach Simplified slide image

IoT Approach Simplified

LANTRONIX APPENDIX A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands) GAAP Net Income (Loss) Non-GAAP Adjustments: Share-based Compensation Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 FY19 FY20 $ (2,470) $ (1,351) $ (5,216) $ (1,701) $ (302) $ (408) $ (10,738) 578 938 1,132 990 603 1,871 3,639 Withholding Taxes on Stock Grants Depreciation and Amortization 10 2 7 14 11 12 33 147 156 269 275 265 464 847 Severance and Restructuring Costs Acquisition Related Costs Impairment of Long-Lived Asset 749 354 2,263 478 92 1,146 3,844 643 353 1,250 38 410 2,284 275 Amortization of Purchased Intangible Assets 144 151 801 941 882 2,037 Amortization of Manufacturing Profit in Acquired Inventory 171 33 51 7 255 Litigation Settlement Cost 75 75 Interest Expense (Income), Net (56) 16 83 90 85 (236) 133 Other (Income) Expense, Net 43 10 (129) (1) (39) 15 (77) Provision (Benefit) for Income Taxes 48 37 43 16 50 141 144 2,477 2,017 5,827 2,892 1,956 4,098 13,214 $ 7 $ 666 $ 611 $ 1.191 $ 1,654 $ 3,690 $2.476 Total Non-GAAP Adjustments Non-GAAP Net Income (Loss) Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Management believes that non-GAAP net income (loss) is an important measure of the Company's business. Management uses this financial measure to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE 13
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