Lantronix, Inc. (NASDAQ:LTRX) Q4 2020 Earnings Conference Call - Final Transcript
Sep 10, 2020 • 05:00 pm ET
Good day, and welcome to the Lantronix Inc. 2020 Q4 Results Conference Call. [Operator Instructions] Please note this event is being recorded.
I'd now like to turn the conference over to Amber Tinz. Please go ahead.
Good afternoon, everyone, and thank you for joining the Lantronix's Fourth Quarter Fiscal 2020 Conference Call. Joining us on the call today are Paul Pickle, Lantronix's President and Chief Executive Officer; and Jeremy Whitaker, Lantronix's Chief Financial Officer.
A live and archived webcast of today's call will be available on the Company's website. In addition, a phone replay will be available starting at 8:00 PM Eastern, 5:00 PM Pacific today through September 17th by dialing 877-344-7529 in the U.S. or for international callers, 412-317-0088 and entering passcode 10146169.
During this call, management may make forward-looking statements, which involve risks and uncertainties that could cause our results to differ materially from management's current expectations. We encourage you to review the cautionary statements and risk factors contained in the earnings release which was furnished to the SEC today and is available on our website and in the Company's SEC filings such as its 10-K and 10-Q.
Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances. Furthermore, during the call, the Company will discuss some 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 we use.
With that, I'll now turn the call over to Jeremy Whitaker, Lantronix's Chief Financial Officer.
Thank you, Amber, and welcome to everyone joining us for this afternoon's call. I'm going to provide the financial results as well as some business highlights for our fourth quarter of fiscal 2020 before I hand it over to Paul for his commentary.
Please refer to today's news release and the financial information in the Investor Relations section of our website for additional details that will supplement my commentary.
For the fourth quarter of fiscal 2020, we reported a record high of $17.4 million in net revenue, an increase of 71% when compared to $10.2 million for the fourth quarter of fiscal 2019. Sequentially, revenue was up 5% compared to the $16.5 million reported in the third quarter of fiscal 2020. The year-on-year growth was primarily driven by contribution from our acquisitions despite continuing disruptions in supply chain and customer demand related to the COVID-19 pandemic.
Gross profit, as a percentage of net revenue was 37.7% for the fourth quarter of fiscal 2020 as compared with 56.6% for the fourth quarter of fiscal 2019 and 44.7% for the third quarter of fiscal 2020. While product mix always affects gross margin, we had two issues in the fourth quarter which lowered gross margins below recent leasing levels.
In the fourth quarter, we took a charge for excess and obsolete inventories for certain end-of-life classic product inventories. This plus increased logistics expense as a