Lantronix, Inc. Secures Revolving Credit Facility and Term Loan


IRVINE, Calif., Sept. 3, 2008 (GLOBE NEWSWIRE) -- Lantronix, Inc. (Nasdaq:LTRX) ("the Company"), a leader in device networking and data center management technologies, today announced that the Company entered into an amendment to its Loan and Security Agreement (the "Loan Agreement") with Silicon Valley Bank, which provides for a three-year $2 million Term Loan and a two-year $3 million Revolving Credit Facility.

"This Loan Agreement exemplifies our strong relationship with Silicon Valley Bank and reflects our commitment to non-GAAP profitability and positive cash flow," stated Reagan Y. Sakai, Chief Financial Officer. "Our working capital initiatives have resulted in annual reductions to accounts payable and net inventories of approximately $3.3 million and $2.9 million, respectively, and the addition of the Term Loan is a logical step towards meeting our anticipated working capital requirements."

Definition of Non-GAAP

The Company defines non-GAAP profitability as net income (loss) excluding share-based compensation, depreciation and amortization, interest income (expense), other income (expense), income tax provision (benefit), as well as charges and gains that are driven primarily by discrete events that management does not consider to be directly related to the company's core operating performance, such as restructurings and litigation settlements.

About Lantronix

Lantronix, Inc. (Nasdaq:LTRX) is a global leader of secure communication technologies that simplify remote access, management, and control of virtually any electronic device. Our innovative solutions enable businesses to make better decisions based on real-time information and help gain a competitive advantage by generating new revenue streams, improving productivity and increasing efficiency and profitability. Easy to integrate and deploy, Lantronix product families include: DeviceLinx(tm) -- remote connectivity and control solutions for electronic equipment via the Internet; ManageLinx(tm) -- powerful application services platform providing secure remote access to firewall-protected equipment; and SecureLinx(tm) -- secure, remote management for IT equipment over the Internet. With more than 20 years of networking experience, Lantronix solutions are used in every major vertical market including security, industrial and building automation, medical, transportation, retail/POS, financial, government, consumer electronics/appliances, IT/data center, and pro-AV/signage. The company's headquarters are located in Irvine, Calif. For more information, visit www.lantronix.com

The Lantronix, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1735

This news release contains forward-looking statements, including statements concerning the Company's potential working capital needs. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that could cause actual reported results and outcomes to differ materially from those expressed in the forward-looking statements. Factors that could cause our expectations and reported results to vary and affect our stock price, include, but are not limited to: quarterly fluctuations in operating results; ability to identify and profitably develop new products that will be attractive to our target markets, including products in our device networking business and the timing and success of new product introductions; changing market conditions and competitive landscape; government and industry standards; market acceptance of our products by our customers; pricing trends; actions by competitors; future revenues and margins; changes in the cost or availability of critical components; unusual or unexpected expenses; and cash usage including cash used for product development or strategic transactions; and other factors that may affect financial performance and the Company's stock price. For a more detailed discussion of these and other risks and uncertainties, see our SEC filings, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and our Annual Report on Form 10-K for the year ended June 30, 2007. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

Lantronix and XPort are registered trademarks of Lantronix, Inc. All other trademarks are properties of their respective owners.


            

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