Company Description
Lantronix designs, develops and markets network device servers that enable
almost any electronic device to be accessed, managed, controlled, reprogrammed
and configured or reconfigured over the Internet or other networks using
standard protocols for connectivity, including fiber optic, Ethernet and
wireless. Our Device Servers and Multiport Device Servers are fully integrated
systems that contain memory, processors, operating systems, software
applications and communication ports. As a result, users can gain instant
access to critical information, manage and control devices in real-time over
the Internet or other networks. We have developed networking solutions for
devices such as bar code scanners, building heating, ventilation and air
conditioning, or HVAC, systems, elevators, manufacturing equipment, process
control equipment, vending machines, thermostats, security cameras, medical
instruments, temperature sensors, card readers and point of sale terminals. We
sell our products, which also includes Print Server and other devices, through
multiple channels using original equipment manufacturers, or OEMs, systems
integrators, distributors and value added resellers, or VARS, to a wide variety
of end-markets including industrial automation, healthcare, security/access
control, retail/point of sale, commercial/information technology and
telecommunications.
Our Market
The emergence of the Internet has increased users' access to information and
the speed at which users are able to respond to new information. As Internet
technology applications have become more advanced, users have become able to
conduct business over the Internet in real-time. The increasing productivity
that real-time communication creates has escalated demand for real-time access
to devices over the Internet for a broad range of applications at all levels of
technological sophistication. Moreover, by enabling intelligent devices to make
decisions and communicate using the Internet without human intervention,
significant cost savings and efficiencies can be realized.
The majority of electronic devices in existence today are not connected to
the Internet. Instead, these devices, if networked, primarily communicate
through proprietary, closed control systems requiring a personal computer, or
PC, extensive wiring and custom designed software. Examples of such isolated
systems include point of sale devices, bar code scanners, security systems,
elevators, manufacturing equipment and medical instruments. Moreover, any
intelligent action that must be taken as a result of information provided by
these devices, such as ordering additional inventory when a bar code scanner
provides information that a store is out of a certain product, requires action
by a human being. Today, manufacturers and systems integrators are increasingly
using device server technology which provides a cost-effective solution to
enable electronic devices to be connected and controlled over the Internet as
well as to replace human intervention by enabling the devices to respond
automatically to certain data inputs.
Demand for device server technology is being driven by the need for cost
effective networking solutions for the base of installed devices as well as
devices currently being developed by OEMs and systems integrators. In terms of
the installed base, device server technology can benefit virtually any
electronic device that has a serial port. In terms of devices currently being
developed, device server technology can benefit virtually any
electronic device that contains, or otherwise could contain, a microprocessor.
Cahners In-stat Group, an independent research company, estimates that the
number of microprocessors embedded in electronic devices is expected to
increase from over 4.9 billion units as of December 31, 1999 to 7.3 billion
units by December 31, 2002.
As competition to be the first-to-market with Internet-enabled products
becomes more intense, OEMs, VARs and systems integrators, whose core
competencies typically do not include networking expertise, are increasingly
seeking out third-party providers of networking capabilities that can meet end-
user demand. End-users desire solutions that provide higher levels of
automation and functionality with advanced features and services including:
. scaleable intelligence and reprogrammability;
. open system architecture;
. real-time, continuous communications;
. seamless integration; and
. flexible applications.
Our Solution
We are a leading provider of network device server technology that enables
electronic devices to be accessed, managed, controlled and reprogrammed over
the Internet using standard protocols for connectivity, including fiber optic,
Ethernet and wireless. We believe our products enable our customers to compete
more effectively by allowing them to improve their business models by
automating tasks previously performed by human resources and streamlining
redundant technology. We believe our products offer end-users and manufacturers
the following key advantages:
. a fully integrated solution;
. a remote real-time solution;
. an open, standards-based architecture;
. no gateway requirement to network devices; and
. improved reliability.
Our Strategy
Our objective is to be the leading global provider for network-enabling
devices. The following elements are central to our strategy:
. building our sales channel relationships with OEMs, VARs and systems
integrators;
. completing strategic aquisitions and entering into partnerships to grow
our customer base and product offering;
. developing new products through research and development;
. extending existing customer relationships to expand future revenue
streams;
. leveraging our application expertise; and
. establishing strong brand awareness. |
