Networking equipment maker Lantronix Inc.’s latest expansion into mainland China underscores ongoing efforts to grow distribution channels and improve its financial footing.
The Irvine-based company’s office in Shanghai, a major tech hub in China, is its first expansion since 2011, when it set up a sales and technical support operation in Hong Kong.
“It’s key for us to have an office to service the large economy of mainland China,” said Chief Executive Kurt Busch, who laid out an aggressive product development road map after taking the helm about two years ago. “We need to be where our customers are.”
Lantronix makes electronic devices and software that allow secure online communication with medical equipment, security devices, smartphones, motor vehicles, meters and thermostats, retail terminals and ATMs.
The company had about $45 million in sales in the 12 months through June 2012, the end of its fiscal year. The North American region accounted for about half of that total; Europe, 30%; and the Asia Pacific region, which includes Japan, about 20%.
Most of its sales in Asia were outside of mainland China, Busch said.
According to Lantronix, recent reports forecast that 62% of Asia-Pacific companies are expected to adopt machine-to-machine communication technologies—Lantronix’ niche—in the next two years, compared to 35% in the Americas, where early adoption is more common.
Busch has cut costs, lowered inventory, raised capital, and pushed one new product launch per quarter at Lantronix, which has been plagued by management and board shake-ups, and financial losses in recent years.
The company in the past year has struck several distribution deals with Macworld Beijing and JD.com Global, China’s largest direct business-to-consumer e-commerce company.
In October, it signed a deal with Ingram Micro Europe, a division of Santa Ana-based Ingram Micro Inc., the world’s largest technology distributor, with $37.8 billion in revenue in 2012.
Identive’s Got the Ticket
Identive Group Inc.’s partnership with Singapore-based Land Transport Authority to develop a smart-chip transit ticket system has led to a $3.9 million contract to supply the tickets.
Under the deal with TransitLink, the Land Transport Authority’s administrator, the Santa Ana-based company will supply paper tickets with embedded near-field communication chips by Germany-based Infineon Technologies AG.
NFC chips, an emerging technology, allow users to swipe a ticket, card or phone over tags and readers to gain access, make financial transactions, connect to a website or open applications, among other uses.
Identive relies on its scanners, readers, cards and other security devices for buildings and computers for the bulk of its $94.5 million in annual sales, but recently, demand has risen for its NFC products.
Samsung Surge
Android smartphones, boosted by the popularity of Samsung’s Galaxy S3 an S4 models, dominated sales in the second quarter, when companies shipped more than 187 million units, up 73.5% from the same period last year.
Smartphones with the Google-based operating system accounted for nearly 80% of the 236.4 million smartphones shipped last quarter, according to Framingham, Mass.-based market researcher International Data Corp.
Samsung rival Apple’s iPhone market share decreased 13% as the Cupertino-based company is in between roll-outs.
Microsoft’s Windows Phone was No. 3, at 3.7%, or 8.7 million devices. BlackBerry was No. 4, with 2.9%.
