Lantronix Inc. released a preliminary earnings report on January 24th for the second fiscal quarter ended December 31, 2007. The company’s preliminary estimates state revenues between $15.1 million and $15.3 million, with a gross margin expected between 50% and 52%. This should translate to a net income between $600K and $1 million. Diluted earnings were anticipated in the $0.01 – $0.02 per share range.

Interim Chief Executive Officer and Chief Financial Officer, Reagan Sakai said, “Our results this quarter were driven by broad-based performance across our strategic product lines… Further, they speak to the company’s ability to execute on the device networking market opportunity during the recent management change and transition to a more customer-focused enterprise.”

If these preliminary estimates hold to be true, they will be well above the $14.5 million in revenues and negative earnings per share that analysts are anticipating. Shares of Lantronix have been on the move since closing Tuesday afternoon at $0.49 per share and they are now hovering around $0.78. This recent influx of interest in the stock comes as a relief for the company, who was warned by the NASDAQ on December 28th of 2007 for trading below the minimum price per share requirement of $1.

Lantronix’s bid price now has to close at above $1 per share for a minimum of 10 consecutive business days before June 23. If the company fails to achieve this requirement, it can be delisted. The technology and service sectors have been rallying for the past few days, and if the company is able to backup their preliminary earnings claims on February 7th, the $1 minimum bid price should not be too far off.

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