Business
Digi International Reports Fiscal First Quarter 2020 Results
- Acquisition of Opengear, Inc. completed in December - Total revenue of $62.3 million - exceeds guidance MINNEAPOLIS--(BUSINESS WIRE)-- Digi International®
About this update from Digi International Inc.
[{"type":"text","content":"\n- Acquisition of Opengear, Inc. completed in December\n- Total revenue of $62.3 million - exceeds guidance\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nDigi International® Inc. (Nasdaq: DGII), a leading global provider of business and mission critical Internet of Things (\"IoT\") products, services and solutions, today announced its financial results for its fiscal first quarter ended December 31, 2019.\n\n\n\"We are excited to welcome Opengear, Inc. to the Digi family,\" said Ron Konezny, President and Chief Executive Officer. \"Our fiscal 2020 is off to a strong start, highlighting our focus on profitable growth.\"\n\n\nFiscal First Quarter 2020 Results\n\n\n\nRevenue of $62.3 million was flat compared to the fiscal first quarter of 2019.\n\n\nNet income decreased to $0.2 million compared to net income of $4.7 million for the fiscal first quarter of 2019.\n\n\nNet income per diluted share decreased to $0.01 per share compared to $0.17 for the fiscal first quarter of 2019.\n\n\nAdjusted EPS of $0.15 was flat compared to the fiscal first quarter of 2019.\n\n\nAdjusted EBITDA increased 3.9% to $6.4 million compared to the fiscal first quarter of 2019.\n\n\n\nReconciliations of GAAP and non-GAAP financial measures appear at the end of this release.\n\n\nSegment Results\n\n\nIoT Product & Services\n\n\nThe segment's fiscal first quarter 2020 revenues of $54.6 million increased 2.5% from the same period in the prior fiscal year. This increase is primarily attributed to the incremental revenue associated with our acquisition of Opengear, Inc. (\"Opengear'\") on December 13, 2019, increased sales from our cellular products and growth in our services revenue. This was partially offset by lower sales of our other traditional product offerings. Gross profit margin increased 1.2 percentage points to 48.8% of revenues for the fiscal first quarter of 2020 due primarily to the acquisition of Opengear, which has a higher gross margin profile, and improved service margins, partially offset by unfavorable product mix.\n\n\nIoT Solutions\n\n\nThe segment's fiscal first quarter 2020 revenues of $7.7 million decreased 14.6% from the same period in the prior fiscal year due primarily to fiscal first quarter 2019 purchases from existing customers that did not reoccur in the fiscal first quarter of 2020. We served nearly 67,000 sites as of December 31, 2019...