Lantronix announced the launch of its SmartEdge.ai 5G‑ready Edge AI Gateway and SmartSwitch.ai PoE+ aggregation switch on January 6, 2026. The gateway is powered by Qualcomm’s QCS6490 processor, a high‑performance SoC that supports 5G, Wi‑Fi 6E, and an on‑board AI engine, enabling real‑time video analytics and edge inference at the source.
The new platform marks a deliberate shift toward high‑margin, integrated solutions. By embedding Qualcomm’s advanced processor, Lantronix can offer a unified edge‑AI stack that delivers both connectivity and compute, positioning the company to capture a growing share of the projected $147.7 billion video‑surveillance market by 2030. The launch signals that Lantronix is moving beyond legacy hardware sales toward recurring, platform‑based revenue streams.
Lantronix’s Q4 FY2025 results showed a 41.3% decline in GAAP revenue to $28.8 million and a non‑GAAP EPS of $0.01, reflecting inventory charges and higher tariffs that compressed gross margins to 40.6% from 44.1% the prior quarter. The new edge‑AI offerings are intended to offset this downturn by tapping higher‑margin segments and driving new demand in industrial automation and security applications.
In Q4 FY2024, IoT System Solutions accounted for 72.5% of total revenue, while Embedded IoT Solutions contributed 23.2%. The SmartEdge.ai Gateway and SmartSwitch.ai Switch are designed to strengthen the IoT System Solutions segment, which has historically delivered the highest margin and growth, and to open new opportunities in the Embedded segment through advanced AI capabilities.
CEO Saleel Awsare emphasized the strategic importance of the launch: “AI‑powered intelligence at the edge is reshaping how organizations secure, automate and understand their environments. With SmartEdge.ai and SmartSwitch.ai, we’re delivering a unified platform that brings advanced video analytics and intelligent connectivity directly to the site data generation.” He added that the company’s FY2025 transformation focused on disciplined cost management and targeted investments in high‑value markets.
Lantronix’s stock has approached its 52‑week high, reflecting investor confidence in the company’s pivot to high‑margin edge‑AI solutions and the broader market opportunity for real‑time video analytics. The launch is expected to reinforce the company’s competitive positioning and support future revenue growth.
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