LANTRONIX INC Segments Disclosure
12. Segment Reporting
The following table presents segment revenue, gross profit, and net income (loss) for the periods presented:
| Years Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Net revenue | $ | 122,923 | $ | 160,327 | ||||
| Less cost of revenue: | ||||||||
| Other costs of revenue | 70,515 | 94,452 | ||||||
| Share-based compensation | 186 | 237 | ||||||
| Amortization of manufacturing profit in acquired inventory | 88 | 822 | ||||||
| Depreciation and amortization | 435 | 462 | ||||||
| Total cost of revenue | 71,224 | 95,973 | ||||||
| Gross profit | 51,699 | 64,354 | ||||||
| Less: | ||||||||
| Personnel-related expenses | 32,551 | 35,338 | ||||||
| Professional fees and outside services | 4,878 | 5,037 | ||||||
| Advertising and marketing | 2,239 | 2,346 | ||||||
| Facilities and insurance | 4,391 | 5,277 | ||||||
| Share-based compensation | 5,946 | 8,100 | ||||||
| Depreciation | 1,649 | 1,701 | ||||||
| Outside services | 636 | 505 | ||||||
| Product certifications | 499 | 462 | ||||||
| Other operating expenses | 2,054 | 1,722 | ||||||
| Restructuring, severance and related charges | 3,535 | 1,423 | ||||||
| Acquisition-related costs | 371 | – | ||||||
| Fair value remeasurement of earnout consideration | – | (9 | ) | |||||
| Amortization of intangible assets | 3,951 | 5,314 | ||||||
| Interest expense, net | 511 | 916 | ||||||
| Other expense (income) | 100 | (7 | ) | |||||
| Provision for (benefit from) income taxes | (239 | ) | 745 | |||||
| Total segment expenses | 63,072 | 68,870 | ||||||
| Segment net loss | $ | (11,373 | ) | $ | (4,516 | ) | ||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.