Lantronix Restating Revenue

Lantronix Inc., an Irvine maker of computer servers that fired its chief financial officer earlier this month, said the company is restating fiscal 2001 and 2002 revenue and that two executives resigned from its board.

Revenue for both years will be reduced by less than 15%, the company said in a prepared statement. Board member H.K. Desai declined to provide further details. Desai was elected chairman today after Bernhard Bruscha resigned.

Lantronix booked sales as revenue when it shipped products to distributors. It now plans to book sales as revenue when distributors ship products to customers, Desai said. The company had $55.2million in revenue for the fiscal year ended June 30, 2001, and $48million for the first three quarters of fiscal 2002.

The company will disclose the exact amount of reductions in a couple of weeks, Desai said.

The company also said third-quarter profit, announced May 1, will be restated to include an expense of $1 million to $2 million for excess and obsolete inventory. Lantronix will file amendments to its financial reports with the Securities and Exchange Commission.

Also stepping down was Chief Executive and President Fred Thiel, who will become chief technology and strategy officer. He also resigned from the board. The board positions haven’t been filled, Desai said.

Lantronix selected Marc Nussbaum as interim chief executive and president.

Earlier this month, the company fired Steven Cotton, the chief financial officer and chief operating officer. Jim Kerrigan, a former Lantronix finance chief, was chosen interim chief financial officer.