Welcome to the Q4 2008 Lantronix, Inc. earnings conference call. (Operator Instructions) I would now like to turn the presentation over to your host for today’s conference, Reagan Sakai.

Before we begin I would like to highlight that an archived webcast of this call will be available on the company’s website at www.lantronix.com and an audio playback will be available through October 17. The number to call for the replay is 888-286-8010 or 617-801-6888 for international callers with pass code 93208588. Please be reminded that during the course of this conference call management will be making forward-looking statements in their prepared remarks and response to your questions concerning among other matters future net revenue, the implementation of new and improved corporate marketing messages, the success of new business lines to create significant value, the acceleration of quarterly comparisons as the year progresses, the increase in device networking sales and the decrease in non-core net revenues, the timing of product releases and future financial performance. These forward-looking statements are based on Lantronix’s current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially as a result of several factors. For a more detailed discussion of these and other risks and uncertainties, see the company’s recent SEC filings including its Form 10K for the fiscal year ended June 30, 2008 and Form 10Q for the third fiscal quarter ended March 31, 2008. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. I would now like to introduce Jerry Chase, President and Chief Executive Officer of Lantronix.

For our fiscal year 2008 ended on June 30, 2008 we are pleased to report annual net revenue growth of 4% driven in large part by a 13% increase in our DeviceLinx for device enablement revenues and continued strong revenue growth in EMEA and Asia. In fiscal year 2009 we intend to continue these positive trends with strong investments in our DeviceLinx business. We have also begun to see some positive effects from changes in our sales organization and new and creative marketing campaign. ManageLinx continues to hold promise and is currently where we would have predicted it would be in terms of the launch process the last time we spoke. The restructuring plans we implemented this summer streamlined our organization enabling us to be more responsive to customers, drive profitability and generate positive cash flow. This difficult but necessary step is a reflection of our strong commitment to profitability and positive cash flow. With our financial house in order we can focus our efforts on improving and expanding our product lines and accelerating our growth and profitability. I’ll talk more about these items later in today’s presentation.

Let me first discuss our fiscal year 2008 results. Total net revenue was $57.6 million for fiscal 2008 an increase of $2.3 million or 4% compared to $55.3 million for fiscal 2007. Device networking net revenue was $53.7 million for fiscal 2008 an increase of $5.1 million or 11% compared to $48.6 million for fiscal 2007. Our device networking business is comprised of device enablement products and device management products. Device enablement net revenue was $45 million for fiscal 2008 an increase of $5.3 million or 13% compared to $39.7 million for fiscal 2007. Device management net revenue was $8.7 million for fiscal 2008 a decrease of $172,000 or 2% compared to $8.9 million for fiscal 2007. Revenues for our device management products were unfavorably impacted by the US economy as a significant majority of these products go to US based customers. This softness in device management products manifests itself in the year-on-year revenue decline in our Americas region. Net revenue for the Americas region was $33.2 million for fiscal 2008 a decrease of 5% compared to $35 million for fiscal 2007. Net revenue for the Europe, Middle East and Africa or EMEA region was $16.6 million for fiscal 2008 an increase of 19% compared to $14 million for fiscal 2007. Net revenue for the Asia Pacific region was $7.8 million for fiscal 2008 an increase of 22% compared to $6.4 million for fiscal 2007. As a percentage of net revenue the Americas, EMEA and Asia Pacific regions were 58%, 29% and 13% respectively for fiscal 2008 compared to 63%, 25% and 12% respectively for fiscal 2007. Gross profit margin was 50.5% for fiscal 2008 compared to 51.2% for fiscal 2007. The decrease in gross profit margin percent was primarily due to an increase in inventory reserves in connection with…

As I mentioned in my opening remarks, our DeviceLinx business grew at 13% this past fiscal year. We were particularly pleased with the performance of Xport which continues its quarter-over-quarter growth performance. In the fiscal fourth quarter we recognized record revenue on the Xport product line. This was on top of record Xport revenue for the third quarter and the quarter before that. This brings us to the first topic I’d like to discuss with you, an update on our DeviceLinx product line. DeviceLinx is our bread-and-butter business, and as you would expect it will receive the bulk of our attention and investment dollars in the coming year. We believe we have outpaced market growth with our DeviceLinx product line but there are more things we can do to be disruptive, increase the performance of our platforms, make them easier to use and gain market share. Our customers have been telling us they want to see greater processing power, more flash, more ramp in popular Lantronix form factors. They also want to see more enabling applications that allow them to develop specific solutions for their verticals. They want greater accessibility to our platforms via Linux, and they want more wireless options. We have already started working in many of these key areas. You can expect us to continue to working closely with our partners and customers to incorporate these elements into our products in the coming year. Though DeviceLinx is our flagship product family, we continue to invest in our other product families with an eye toward future growth, which bring us to ManageLinx. ManageLinx continues to show promise and we continue to appropriately invest in its development and launch. Since we spoke last ManageLinx has completed beta testing in the field, it has been released to production and it’s…

For the first fiscal quarter of 2009 ending September 30, 2008 our non-GAAP profitability break-even point ranges from $12.8 million to $13.4 million in quarterly revenue. After the first quarter and taking into account the full impact of our recent restructuring, our non-GAAP profitability break-even point will range from $12.5 million to $12.9 million in quarterly revenue. To summarize and re-emphasize, these are not revenue guidance ranges but are intended to provide guidance on our quarterly non-GAAP break-even points with regard to quarterly revenue. We expect to do better than non-GAAP break-even and we fully expect to drive positive cash flow. This concludes my prepared remarks. I’d now like to open the call to questions.

There are no questions in the queue at this time.

Since there are no additional questions, we would like to thank everybody for their participation on the call today and we look forward to speaking with all of you next quarter. Thank you.