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Presentation A u g u s t 2 0 1 7

COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE Copyright © Lantronix 2017. All rights reserved.

Forward-Looking Statements

This presentation contains forward-looking statements, including statements concerning our business plans, our product development

strategies, and our target financial model. Any statement relating to our plans, goals, expectations or any future event should be considered a

forward-looking statement. While we have based our forward-looking statements on our current expectations, forward-looking statements are

subject to substantial risks and uncertainties. As a result, our actual results could differ materially from those indicated in our forward-looking

statements, and you should not rely on any of these forward-looking statements.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking

statements include, among others, changes in customer demand, the extent to which we are able to develop successful new products, changes

to the rate of decline of our legacy products, and the risks and uncertainties described in “Risk Factors” in our Annual Report on Form 10-K filed

with the Securities and Exchange Commission, or SEC, as well as in our other filings with the SEC.

Our forward-looking statements are based on our view as of the date they are made. We expressly disclaim any intent or obligation to update

any forward-looking statements after the date hereof.

Lantronix

Enabling the Industrial Internet of

Things

• Global provider of secure data access and

management solutions for Industrial IoT

• Innovator known for leading edge connectivity

solutions that are easy to deploy and help accelerate

time to market

• Millions of devices connected worldwide

• Strong Blue Chip customer base

• Based in Irvine California - company founded in 1989

• NASDAQ listed: LTRX

IoT Pure Play Established public company investing in Growth Market

Fiscal Year

Ended June 30, 2017 $44.7M Revenue 10% YoY Growth

Global Revenue Americas 55% EMEA 30% APJ 15%

Experienced Leadership Team Focused on Growth

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PROVEN LEADERSHIP TEAM

Jeffrey Benck President & CEO

Jeremy Whitaker

CFO

Sanjeev Datla

CTO

Kevin Yoder

VP, WW Sales

Michael A. Fink

VP, Operations

Daryl Miller

VP, Engineering

Shahram Mehraban

VP, Marketing

Kurt Scheuerman

VP, General Counsel

Tom Morton

VP, Human Resources

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OUR MISSION

CREATING SECURE DATA ACCESS AND MANAGEMENT

SOLUTIONS FOR THE INDUSTRIAL IOT

Our mission is to be the leading supplier of IoT solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for applications and people.

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Expand i nto Software Bus iness

Pursue Market Share Ga ins wi th I T

Management Pr oducts

Gr ow I oT R evenue wi th New Wire less Gateway Products

OUR GROWTH

STRATEGY

Product Portfolio

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IOT GATEWAYS & BUILDING

BLOCKS

Connectivity Without Complexity

IT MANAGEMENT SOLUTIONS

Management of Enterprise

IT Infrastructure

MANAGEMENT SOFTWARE

Scalable Software Made Simple

what

WELL POSITIONED IN KEY MARKET SEGMENTS

S t r o n g b a s e o f g l o b a l b l u e - c h i p c u s t o m e r s

RETAIL INDUSTRIAL ENERGY / UTILITIES HEALTHCARE SMART BUILDING

TRANSPORTATION FINANCIALS EDUCATION MILITARY & GOV’T TELECOM

$190B Module/Sensor

Addressing Expanding IoT

Opportunity

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$315B Module/Sensor

$193B Application Software

$73B IoT Platform

2016 2020 Source: IDC t

IOT SOLUTIONS FROM THE DEVICE TO THE DATA CENTER

New Connected Devices

Legacy Devices

Network

Lantronix Embedded Modules

& Gateways

Data Center

Lantronix External Device

Gateways

Lantronix IT Management

Solutions

LANTRONIX IOT GATEWAYS

PRODUCT PORTFOLIO

Secure and certified enterprise-ready connectivity, network intelligence and

management at scale for industrial and commercial devices and machines

Embedded IoT Gateways (Wi-

Fi & Bluetooth) Ideal to drop into any new or inflight design and their tiny size is perfect for high-volume integration

IoT Device Gateways

(Wi-Fi & Cellular) Ideal for connecting existing

devices and machines or when it is desirable to keep connectivity

external to asset

xPico 240 Mid-range

Ethernet, Wi-Fi

xPico 250 Mid-range

Ethernet, Wi-Fi

Bluetooth

PremierWave 2050 Enhanced Ethernet, Wi-Fi

Bluetooth

SGX5150 Ethernet, Wi-Fi

Bluetooth

PremierWave

XC HSPA+ Ethernet, Cellular

Now Sampling

Launched Spring of 2016 Launched Fall of 2016

Now Sampling

In Beta

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O E Ms n e e d t o d e v e l o p s e v e r a l s o f t wa re

a p p l i c a t i o n s

?

? ?

? ?

? ? ?

?

?

? ?

E x i s t i ng I o T p l a t f o rms a r e l i m i t e d t o p r o v i d i ng

c l o ud c o n n e c t i v i t y a n d c l o ud - b a s e d I T b u i l d i n g

b l o c k s

B u i l d i ng s c a l a b l e m a na g e me nt s o f t w a re i s n o t a c o r e c o m pe t e nc y o r p r i o r i ty f o r m o s t I o T

O E Ms

HTML5 CSS3

Javascript

Angular Typescript

Apache NGNIX

REST APIs

User Management Access Control

Security MySQL

MongoDB ChartJS/D3D

SMS Email

Push

Distributed Software Design

Multi-tenancy

DevOps Billing

Portals

MQTT Metering

Installers

Licensing

Bui ld ing an IoT so lut ion represents a s ignif icant opportunity to enhance business va lue, but i t i s complex and requires a substant ial investment.

THE OEM IOT APPLICATION CHALLENGE

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THE SOLUTION: LANTRONIX MACH10

The I oT Appl icat ion Deve lopment a nd Deployment Software P lat form

OEM-Centric. System Integrator Friendly.

We Built It, So That OEMs Don’t Have To.

Add Google-like search, automated device monitoring, text and push notifications. No expensive redesign.

Enhance Existing Applications

Start from higher ground with pre-tested IoT application building blocks. Not IT building blocks

Develop New IoT Applications

Go to market faster with Lantronix developed IoT management applications powered by MACH10

Leverage Ready-to-Use Applications

MACH10

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Operating Results

Established A Foundation

for Growth

N e w C E O , C T O , V P W W S a l e s , V P M a r k e t i n g

C o n s o l i d a t e d A P A C a n d J a p a n

O p e n e d n e w I n d i a I o T s o f t w a r e l a b

R e s t r u c t u r e d E M E A s a l e s o r g a n i z a t i o n

Getting the right team in place

R a t i o n a l i z e d c h a n n e l a n d r o u t e s t o m a r k e t

F o c u s e d m a r k e t i n g a n d s a l e s p i p e l i n e d i s c i p l i n e

A c h i e v i n g m a r k e t s h a r e g a i n s

I m p r o v e d g r o s s m a r g i n s , r e t u r n e d t o n o n - G A A P p r o f i t a b i l i t y

Driving operational excellence

S t o p p e d i n v e s t m e n t i n m o b i l e p r i n t i n g

L a u n c h e d n e w I o T g a t e w a y p r o d u c t s

I n i t i a t e d M A C H 1 0 I o T P l a t f o r m d e v e l o p m e n t

Executing on new product strategy

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(In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY16 F17

Net Revenue $ 10,940 $11,222 $11,524 $ 11,044 $ 40,592 $ 44,730

Gross Profit $ 5,700 $ 5,812 $ 6,398 $ 5,670 $ 19,378 $ 23,580

% of Net Revenue 52.1% 51.8% 55.5% 51.3% 47.7% 52.7%

GAAP Net Income (Loss) $ (104) $ 41 $ (162) $ (52) $ (1,962) $ (277)

Non-GAAP Net Income (Loss) $ 265 $ 444 $ 484 $ 388 $ 238 $1,581

5 % Y O Y N e t R e v e nu e G r o w t h

M a i nt a i ned G r o s s M a rg i n s A b o v e 5 0 %

O p e ra t i n g N e a r G A A P B r e a k e v e n

6 t h C o n s e c ut i v e Q u a r t e r o f N o n - G A AP P r o f i t a b i l i t y

Q4 FY 2017 HIGHLIGHTS:

SELECTED INCOME STATEMENT INFORMATION

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RETURN TO REVENUE GROWTH IN FY17

R e v e n u e i n $ 0 0 0 s

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

FY16 FY17

IoT ITM Other

A n n u a l N e t R e v e nu e G r o w t h o f 1 0 %

I m p r o v e d G r o s s M a rg i n s t o 5 2 . 7 % f r o m 4 7 . 7 %

R e d uc e d G A A P L o s s f r o m $ 2 . 0 M t o $ 2 7 7 K a n d O p e ra t i n g N e a r G A A P b r e a k e v e n

I n c r e a s e d N o n - G A A P I n c o me f r o m $ 2 3 8 K t o $ 1 . 6 M

I n c r e a s e d c a s h b a l a nc e f r o m $ 6 M t o $ 8 . 1 M

FY 2017 HIGHLIGHTS:

SELECTED BALANCE SHEET INFORMATION

(In thousands except price per share data) June 30, June 30,

2016 2017

Cash and Cash Equivalents $ 5,962 $ 8,073

Accounts Receivable, Net 3,164 3,432

Inventories, Net 6,584 6,959

Total Assets 27,779 30,132

Current Liabilities 7,598 8,989

Non-Current Liabilities 463 455

Working Capital 9,061 10,391

Common Shares Outstanding 17,254 17,809

RSUs Outstanding 460 300

Stock Options Outstanding 3,606 4,184

Weighted Average Exercise Price Per Share $ 1.85 $ 1.78

Invest in one of the few public company IoT pure plays

Establ i shed g lobal I oT so lut ions provider wi th b lue ch ip customer base

New l eadership t eam w/ s igni f i cant enterpr i se exper ience

Pursuing fa st g r owing I oT ma rket wi th double d ig i t CAGRs

MACH10 I oT p lat form enables i ncrementa l g r owth opportuni ty

Solid operational execution and improving fundamentals

10% r evenue gr owth for FY17

Operat ing near GAAP break -even a nd generat ing non -GAAP prof i t

Bus iness model wi th s igni f i cant operat ing l everage

No l ong-term debt, ca sh f low pos i t ive

Substant ia l NOL federa l c arryover ($88.5M a s o f 6/30/2017)

SUMMARY

investors@lantronix.com

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(In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY16 FY17

GAAP Net Income (Loss) $ (104) $ 41 $ (162) $ (52) $ (1,962) $ (277)

Non-GAAP Adjustments:

Share-based Compensation 201 220 224 267 870 912

Depreciation and Amortization 151 153 151 139 759 594

Interest Expense, Net 7 6 5 5 32 23

Other (Income) Expense, Net 3 (4) (2) 6 (61) 3

Withholding Taxes on Stock Grants - 5 5 2 4 12

Severance and Restructuring Costs - - 246 - 533 246

Provision (Benefit) for Income Taxes 7 23 17 21 63 68

Total Non-GAAP Adjustments 369 403 646 440 2,200 1,858

Non-GAAP Net Income (Loss) $ 265 $ 444 $ 484 $ 388 $ 238 $ 1,581

L a n t r o n i x b e l i e v e s t h a t t h e p r e s e n t a t i o n o f n o n - G A A P f i n a n c i a l i n f o r m a t i o n , w h e n p r e s e n t e d i n c o n j u n c t i o n w i t h t h e c o r r e s p o n d i n g G A A P m e a s u r e s , p r o v i d e s i m p o r t a n t s u p p l e m e n t a l i n f o r m a t i o n t o m a n a g e m e n t a n d i n v e s t o r s r e g a r d i n g f i n a n c i a l a n d b u s i n e s s t r e n d s r e l a t i n g t o t h e C o m p a n y ' s f i n a n c i a l c o n d i t i o n a n d r e s u l t s o f o p e r a t i o n s . T h e n o n - G A A P f i n a n c i a l m e a s u r e s d i s c l o s e d b y t h e C o m p a n y s h o u l d n o t b e c o n s i d e r e d a s u b s t i t u t e f o r , o r s u p e r i o r t o , f i n a n c i a l m e a s u r e s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P , a n d t h e f i n a n c i a l r e s u l t s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P a n d r e c o n c i l i a t i o n s o f t h e n o n - G A A P f i n a n c i a l m e a s u r e s t o t h e f i n a n c i a l m e a s u r e s c a l c u l a t e d i n a c c o r d a n c e w i t h G A A P s h o u l d b e c a r e f u l l y e v a l u a t e d . T h e n o n - G A A P f i n a n c i a l m e a s u r e s u s e d b y t h e C o m p a n y m a y b e c a l c u l a t e d d i f f e r e n t l y f r o m , a n d t h e r e f o r e m a y n o t b e c o m p a r a b l e t o , s i m i l a r l y t i t l e d m e a s u r e s u s e d b y o t h e r c o m p a n i e s . T h e C o m p a n y h a s p r o v i d e d r e c o n c i l i a t i o n s o f t h e n o n - G A A P f i n a n c i a l m e a s u r e s t o t h e m o s t d i r e c t l y c o m p a r a b l e G A A P f i n a n c i a l m e a s u r e s . M a n a g e m e n t b e l i e v e s t h a t n o n - G A A P o p e r a t i n g e x p e n s e s , n o n - G A A P n e t i n c o m e ( l o s s ) a n d n o n - G A A P n e t i n c o m e ( l o s s ) p e r s h a r e a r e i m p o r t a n t m e a s u r e s o f t h e C o m p a n y ' s b u s i n e s s . M a n a g e m e n t u s e s t h e a f o r e m e n t i o n e d n o n - G A A P m e a s u r e s t o m o n i t o r a n d e v a l u a t e o n g o i n g o p e r a t i n g r e s u l t s a n d t r e n d s t o g a i n a n u n d e r s t a n d i n g o f o u r c o m p a r a t i v e o p e r a t i n g p e r f o r m a n c e . N o n - G A A P o p e r a t i n g e x p e n s e s c o n s i s t o f o p e r a t i n g e x p e n s e s e x c l u d i n g ( i ) s h a r e - b a s e d c o m p e n s a t i o n a n d r e l a t e d p a y r o l l t a x e s ( i i ) d e p r e c i a t i o n a n d a m o r t i z a t i o n ; a n d ( i i i ) r e s t r u c t u r i n g a n d s e v e r a n c e c h a r g e s . N o n - G A A P n e t i n c o m e ( l o s s ) c o n s i s t s o f n e t i n c o m e ( l o s s ) e x c l u d i n g ( i ) n o n - G A A P a d j u s t m e n t s t o o p e r a t i n g e x p e n s e s , ( i i ) i n t e r e s t i n c o m e ( e x p e n s e ) , ( i i i ) o t h e r i n c o m e ( e x p e n s e ) , a n d ( i v ) i n c o m e t a x p r o v i s i o n ( b e n e f i t ) .

APPENDIX A: Reconciliation of Non-GAAP Financial Measures