Digi International Reports Fiscal Fourth Quarter and Full Fiscal Year 2019 Results
- Fiscal fourth quarter revenue of $65.0 million
- Fiscal fourth quarter GAAP EPS of $0.08
- The Company introduces its fiscal 2020 guidance
(Minneapolis, MN, November 14, 2019) - Digi 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 the fiscal fourth quarter and full fiscal year ended September 30, 2019.
"Both business segments contributed to a record fiscal 2019" said Ron Konezny, President and Chief Executive Officer. "Digi is well-positioned to build on that momentum in fiscal 2020, and we are excited to announce our agreement to add Opengear, Inc. to the Digi family."
Fiscal Fourth Quarter 2019 Results
Revenue decreased 0.2% to $65.0 million compared to the same period in the prior fiscal year. Net income decreased to $2.3 million, compared to net income of $3.3 million in the fiscal fourth quarter of 2018. Diluted earnings per share (EPS) decreased to $0.08, compared to $0.12 for the fiscal fourth quarter of 2018. Adjusted EPS decreased to $0.18, compared to $0.22 for the fiscal fourth quarter of 2018. Adjusted EBITDA increased 3.3% to $7.6 million as compared to the same period in the prior fiscal year.
Full Fiscal Year 2019 Results
Revenues increased 12.0% to $254.2 million from the same period in the prior fiscal year. Net income increased to $10.0 million, compared to net income of $1.6 million for fiscal 2018. Diluted EPS increased to $0.35 compared to $0.06 for fiscal 2018. Adjusted EPS increased to $0.65, compared to $0.61 in fiscal 2018. Adjusted EBITDA increased 12.9% to $26.5 million as compared to the same period in the prior fiscal year.
Reconciliations of GAAP and non-GAAP financial measures appear at the end of this release. In the fiscal fourth quarter of 2019, we expanded our definition of adjusted EPS to further exclude the effects of amortization of intangible assets, stock-based compensation expense, adjustments to estimates of contingent consideration liabilities, acquisition-related expenditures, and other non-operating income/expense. We believe the expansion of adjusted EPS to exclude the effects of these items provides investors with a better understanding of the financial performance of the Company, future prospects of our core business activities and better benchmarking of our performance externally against our competitors. Further, this non-GAAP metric is a measure used by management for the purposes of evaluating performance and establishing internal budgets. Adjusted EPS for prior periods have been conformed to match the current period presentation.
IoT Product & Services
Fiscal fourth quarter 2019 revenues of $55.5 million decreased 1.7% from the same period in the prior fiscal year primarily due to lower sales of our cellular and network product offerings. Gross profit increased 0.6 percentage points to 47.9% for the fiscal fourth quarter of 2019 due to favorable product mix.
Full fiscal year 2019 revenues of $215.3 million increased 6.8% from the previous year due to incremental revenue of $5.4 million from Accelerated Concepts, Inc. and increased sales of our embedded and RF product offerings, partially offset by lower sales of our network product offerings. Gross profit decreased 1.9 percentage points to 46.7% for fiscal 2019 due to unfavorable product mix.
The following information was filed by Digi International Inc (DGII) on Thursday, November 14, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-K Annual Report Accession Number: 0000854775-19-000022 Submitted to the SEC: Wed Nov 27 2019 7:57:15 AM EST Accepted by the SEC: Wed Nov 27 2019 Period: Monday, September 30, 2019 Industry: Computer Communications Equipment