Lantronix shares rose after the company's earnings for its fiscal fourth quarter came in ahead of Wall Street estimates.
The stock gained 14% to $6.45 in premarket trading Thursday. Through the prior close, shares were down 8% this year.
The Irvine, Calif., company said it is gaining momentum as an AI provider for unmanned systems.
The unmanned systems business grew from a minimal contribution a year ago to $12.6 million in fiscal 2026 revenue. It is now expected to represent 15% to 20% of total revenue in fiscal 2027.
In the fiscal fourth quarter, Lantronix posted $31.2 million in revenue, ahead of the $30.7 million analysts were expecting.
Adjusted earnings were 4 cents a share, 1 cent higher than Wall Street's forecast.
For the current first quarter, Lantronix is anticipating $31 million to $33 million in revenue and 4 cents to 6 cents in adjusted earnings per share. Analysts expect $31.8 million in sales and 4 cents a share in earnings.