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Lantronix Boosts Global Drone and Defense Reach With Trillium Deal

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Key Takeaways

  • LTRX's Edge AI tech was chosen by Trillium to power next-gen imaging systems for uncrewed aircraft.
  • The Open-Q 5165RB module enables real-time AI processing, object tracking and low-latency targeting.
  • LTRX also partnered with Sightline and forecasts Q2 revenue of $28M-$32M with EPS of 2-4 cents.

Lantronix, Inc. (LTRX - Free Report) recently announced that its NDAA/TAA-compliant Edge AI technology and engineering services have been selected by Trillium Engineering, a leading maker of gimbaled imaging systems for uncrewed aircraft systems (UAS). The partnership strengthens Lantronix’s position in the rapidly expanding global drone market, which is projected to reach $57.8 billion by 2030, and highlights its growing role in defense and intelligence technology innovation.

The collaboration underscores Lantronix’s ability to deliver mission-critical, AI-powered edge computing solutions that create recurring revenue opportunities across both defense and commercial sectors. Trillium’s imaging systems support a range of applications, including intelligence, surveillance and reconnaissance (ISR), infrastructure inspection and wildfire operations. According to Trillium’s vice president of Product Development, Ryan O’Connor, Lantronix’s technology has played a key role in advancing its next-generation uncrewed imaging platforms and enabling real-time operational intelligence.

Management noted that the partnership highlights the scalability of the company’s Edge AI platform for military and commercial drone applications, reinforcing its leadership in markets with high growth potential and substantial barriers to entry.

A major differentiator in this collaboration is Lantronix’s Open-Q 5165RB System on Module, powered by Qualcomm Dragonwing processors. This technology drives Trillium’s GD-Loc and NyxCore products with advanced on-device AI capabilities such as real-time edge processing, adaptive object detection and tracking, precision targeting in GPS-denied environments and power-efficient SWaP-optimized design for compact uncrewed systems.

For investors, the design win marks an important milestone in Lantronix’s strategy to deliver sustainable, high-margin growth through differentiated Edge AI solutions. By expanding deeper into the drone and defense markets—both known for strong spending and long product lifecycles—Lantronix is positioned to capture additional recurring revenue and strengthen its competitive moat within the IoT and AI ecosystem.

Lantronix’s combination of embedded compute technology, compliance expertise and flexible software support enables customers like Trillium to accelerate product development and meet stringent government requirements. Its scalable platform also positions the company to support future industrial IoT programs requiring TAA and NDAA compliance.

In the first quarter of fiscal 2026, the company announced that it partnered with Sightline Intelligence to integrate Lantronix’s NDAA/TAA-compliant Edge AI technology into its new high-performance video processing solution for defense and commercial drone applications.

For the second quarter of fiscal 2026, the company expects revenue between $28 million and $32 million, with a midpoint of $30 million. Non-GAAP EPS is projected between 2 cents and 4 cents, with 3 cents at the midpoint.

LTRX’s Zacks Rank & Stock Price Performance

LTRX currently has a Zacks Rank #2 (Buy). Shares of the company have surged 91.3% in the past year compared with the Zacks Computer Networking industry’s growth of 37.7%.

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Other Key Picks From the Computer and Technology Space

Some other top-ranked stocks from the broader technology space are Digi International Inc. (DGII - Free Report) , NetScout Systems, Inc. (NTCT - Free Report) and Genpact Limited (G - Free Report) . DGII, NTCT and G carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Digi International’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while meeting in one, with the average surprise being 4.45%. In the last reported quarter, DGII delivered an earnings surprise of 9.8%. Its shares have increased 42.4% in the past year.

NetScout’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 20.5%. In the last reported quarter, NTCT delivered an earnings surprise of 37.78%. Its shares have surged 25.5% in the past year.

Genpact’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 5.53%. In the last reported quarter, G delivered an earnings surprise of 7.78%. Its shares have increased 7.7% in the past year.

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