Lantronix Inc. (NASDAQ:LTRX), currently valued at $117 million and trading at $3.02 per share, announced that its board of directors approved an increase in the size of the board from five to six members and appointed James C. Auker as a non-employee director to fill the new vacancy, effective Tuesday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.
According to a statement in a press release filed with the Securities and Exchange Commission, Mr. Auker's appointment follows a Cooperation Agreement entered into by Lantronix and Chain of Lakes Investment Fund, LLC, Haluk L. Bayraktar, and Emre Aciksoz, dated June 24, 2025. Under this agreement, Lantronix agreed to take all necessary action to appoint Mr. Auker to the board. The company reported that there are no related party transactions between Lantronix and Mr. Auker requiring disclosure.
Mr. Auker will receive compensation in accordance with Lantronix's standard program for non-employee directors. As part of this, he will be offered a grant of 10,387 restricted stock units (RSUs) under the company's 2020 Performance Incentive Plan. These RSUs are scheduled to vest in full on November 5, 2025, which marks the first anniversary of Lantronix's 2024 annual meeting of stockholders. The RSU grant represents a pro-rated amount of the annual equity grant to non-employee directors.
The board determined that Mr. Auker meets the independence and financial literacy requirements under the applicable rules of the Nasdaq Stock Market and the SEC. In connection with his appointment, Lantronix and Mr. Auker will enter into an indemnification agreement, consistent with the agreements previously executed with other company directors. The company operates with a moderate debt level, with a debt-to-equity ratio of 0.29, and maintains strong liquidity with assets exceeding short-term obligations.
This information is based on a statement in a press release filed with the Securities and Exchange Commission.
In other recent news, Lantronix Inc. reported its third fiscal quarter 2025 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.03, missing the expected $0.08, and revenue reached $28.5 million, falling short of the forecasted $34.09 million. Needham analysts subsequently lowered their price target for Lantronix from $5.50 to $4.50 but maintained a Buy rating on the stock. In a strategic move, Lantronix has secured a multi-year agreement with a major U.S. mobile network operator to manage over 50,000 backup power systems, emphasizing its role in telecom infrastructure digital transformation. Additionally, Lantronix announced the appointment of Sailesh Chittipeddi, Ph.D., as an independent director, expanding the Board's expertise in industrial and IoT sectors. The company also entered a cooperation agreement with stockholders, leading to the appointment of James C. Auker to the Board of Directors. Lantronix continues to focus on edge AI solutions and is reducing its manufacturing footprint in China, signaling a strategic pivot toward new growth avenues.