Business
Digi International Reports Third Fiscal Quarter 2020 Results
Record Fiscal Third Quarter Results Revenue Exceeds $70M, EPS at $0.06, Adjusted EPS grows 44% to $0.23 Balance Sheet Strengthens on over $30M Debt Pay Down
About this update from Digi International Inc.
[{"type":"text","content":"\nRecord Fiscal Third Quarter Results\n\n\nRevenue Exceeds $70M, EPS at $0.06, Adjusted EPS grows 44% to $0.23\n\n\nBalance Sheet Strengthens on over $30M Debt Pay Down\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 third fiscal quarter ended June 30, 2020.\n\n\n\"We are pleased with our fiscal third quarter record performance,\" said Ron Konezny, President and Chief Executive Officer. \"In a period in which the global economy contracted at unprecedented levels, Digi’s business model demonstrated its resiliency. Digi’s core value proposition enabling secure, automated, remote work has never been more relevant as our customers adapt during this pandemic era.\"\n\n\nThird Fiscal Quarter 2020 Results Compared to Third Fiscal Quarter 2019 Results\n\n\n\nRevenue increased to $70.3 million compared to $61.2 million, an increase of $9.1 million, or 15.0%.\n\n\nNet income increased to $1.8 million compared to $1.6 million, an increase of $0.2 million, or 7.2%.\n\n\nNet income per diluted share remained flat at $0.06.\n\n\nAdjusted EPS increased to $0.23 per diluted share compared to $0.16 per diluted share, or 43.8%.\n\n\nAdjusted EBITDA increased to $10.5 million compared to $6.1 million, an increase of $4.4 million, or 71.5%.\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 third fiscal quarter 2020 revenues of $63.5 million increased 25.7% from the same period in the prior fiscal year. This increase is attributed primarily to the incremental revenue associated with our acquisition of Opengear, Inc. (\"Opengear'\") on December 13, 2019. Gross profit margin increased 770 basis points to 53.4% of revenues for the third fiscal quarter of 2020. Product mix across the portfolio, including the products acquired through the acquisition of Opengear drove the margin rate increase.\n\n\nIoT Solutions\n\n\nThe segment's third fiscal quarter 2020 revenues of $6.9 million decreased 35.6% from the same period in the prior fiscal year. This was due primarily to delays in customer rollouts, expansions and equipment upgrades as a result of CO...