M2M World News logo daily news from the machine-to-machine world
- 100% M2M and IoT News -

Follow Us

facebooktwitterrssfacebooktwitterrss
IoT World Forum 2014, London, UK

Archives

Alternative de l'animation


Digi International Reports Third Fiscal Quarter 2012 Results

Digi International Reports Third Fiscal Quarter 2012 Results

Digi International® Inc. reported revenue of $47.6 million for the third fiscal quarter of 2012, compared with $54.3 million for the third fiscal quarter of 2011, a decrease of $6.7 million, or 12.2%.

Net income was $2.3 million, or $0.09 per diluted share, in the third fiscal quarter of 2012 compared to $3.6 million, or $0.14 per diluted share, in the year ago comparable quarter.

Joe Dunsmore, Digi’s Chief Executive Officer, said:

“Our financial results were disappointing in comparison to the record third quarter a year ago”

As our business continues to shift from sales of legacy wireline products to broader based wireless solutions, we may continue to experience near term challenges in achieving significant growth. We continue to generate strong positive cash flow. With cash balances presently in excess of $100 million, our Board has approved a new share repurchase program of up to $20 million. This represents a significant return of cash to our stockholders while still leaving us with the flexibility to pursue strategic acquisitions or other growth opportunities that may arise.

Business Results for the Three Months Ended June 30, 2012

  • Revenue from wireless products in the third fiscal quarter of 2012 was $20.7 million, or 43.5% of net sales, compared to $22.6 million, or 41.6% of net sales, in the third fiscal quarter of 2011, a decrease of $1.9 million, or 8.1%.
  • Revenue from wired products was $26.9 million, or 56.5% of net sales, in the third fiscal quarter of 2012 compared to $31.7 million, or 58.4% of net sales, in the third fiscal quarter of 2011, a decrease of $4.8 million, or 15.2%.
  • Revenue in North America was $27.7 million in the third fiscal quarter of 2012, compared to $32.3 million in the third fiscal quarter of 2011, a decrease of $4.6 million, or 14.2%.
  • Revenue in EMEA (Europe, Middle East and Africa) was $12.0 million in the third fiscal quarter of 2012, compared to $13.0 million in the comparable quarter a year ago, a decrease of $1.0 million, or 8.1%.
  • Revenue in the Asian countries was $6.4 million in the third fiscal quarter of 2012 compared to $6.9 million in the third fiscal quarter of 2011, a decrease of $0.5 million, or 6.8%.
  • Latin American revenue was $1.5 million in the third fiscal quarter of 2012 compared to $2.1 million in the comparable quarter a year ago, a decrease of $0.6 million, or 26.0%.
  • Gross profit was $25.3 million in the third fiscal quarter of 2012 compared to $28.8 million in the same period of the prior year, a decrease of $3.5 million, or 12.0%.
  • The gross margin was 53.1% in the third fiscal quarter of 2012 compared to 53.0% in the third fiscal quarter of 2011.
  • Total operating expenses in the third fiscal quarter of 2012 were $23.2 million, or 48.7% of revenue, compared to $22.6 million, or 41.6% of revenue, in the third fiscal quarter of 2011.
  • A restructuring charge of $1.0 million is included in total operating expenses in the third fiscal quarter of 2012, relating to changes that were implemented to focus more aggressively on Digi’s shift to end-to-end M2M solutions. The restructuring charge consisted of $0.6 million for severance in connection with a reduction in force of 30 employees and $0.4 million for facility consolidation expenses.
  • Digi reported operating income of $2.1 million, or 4.4% of net sales, in the third fiscal quarter of 2012 compared to $6.2 million, or 11.4% of net sales, in the third fiscal quarter of 2011. Operating income for the third fiscal quarter of 2012 includes the aforementioned restructuring charge of $1.0 million, or 2.0% of net sales.
  • Net income was $2.3 million in the third fiscal quarter of 2012, or $0.09 per diluted share, compared to $3.6 million, or $0.14 per diluted share, in the third fiscal quarter of 2011. Net income in the third fiscal quarter of 2012 benefited by $1.1 million, or $0.04 per diluted share, due to additional research and development tax credits identified for fiscal years ended September 30, 2009, September 30, 2010 and September 30, 2011 resulting from a recently completed research and development tax credit study. Net income in that same quarter also decreased by $0.6 million, net of taxes, or $0.02 per diluted share, as a result of the aforementioned restructuring expenses.
  • Non-GAAP net income for the third fiscal quarter of 2012 was $1.9 million, or $0.07 per diluted share, compared to $3.6 million, or $0.14 per diluted share, in the first three months of fiscal 2011. Please refer to the table reconciling net income and net income per diluted share to non-GAAP net income and net income per diluted share that is provided later in this earnings release.
  • Earnings before interest, taxes, depreciation and amortization in the third fiscal quarter of 2012 were $3.9 million, or 8.1% of revenue, compared to $8.0 million, or 14.8% of revenue, in the third fiscal quarter of 2011.

Fiscal 2012 Guidance
For the fourth fiscal quarter of 2012, Digi projects revenue in a range of $46 to $49 million. Digi projects net income per diluted share in a range of $0.06 to $0.10.

For the full fiscal year 2012, Digi projects revenue in a range of $189.3 to $192.3 million. Digi projects net income per diluted share in a range of $0.26 to $0.30. Projected net income per diluted share for fiscal 2012 includes a benefit of $1.2 million, or $0.05 per diluted share, for discrete tax items, offset partially by restructuring expenses of $0.8 million, net of taxes, or $0.03 per diluted share.

About Digi International
Digi International is making wireless M2M easy by developing reliable products and solutions to connect and securely manage local or remote electronic devices over the network or via the Web. Digi offers the highest levels of performance, flexibility and quality, and markets its products through a global network of distributors and resellers, systems integrators and original equipment manufacturers (OEMs). For more information, visit Digi’s website at www.digi.com



bottom border