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Dec 31, 2019
Digi Q1 2020 Earnings Report
Digi International's Q1 2020 results were reported with revenue flat compared to Q1 2019 and the acquisition of Opengear, Inc. completed.
Key Takeaways
Digi International reported flat revenue of $62.3 million compared to the fiscal first quarter of 2019. Net income decreased to $0.2 million, and adjusted EPS was $0.15, flat compared to the prior year. The acquisition of Opengear, Inc. contributed to revenue growth in the IoT Product & Services segment.
Revenue of $62.3 million was flat compared to the fiscal first quarter of 2019.
Net income decreased to $0.2 million compared to $4.7 million for the fiscal first quarter of 2019.
Adjusted EPS of $0.15 was flat compared to the fiscal first quarter of 2019.
Adjusted EBITDA increased 3.9% to $6.4 million compared to the fiscal first quarter of 2019.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Product & Services Revenue
CapyFin.comIoT Solutions Revenue
CapyFin.com Forward Guidance
For the second fiscal quarter of 2020, Digi projects revenue to be in a range of $72 million to $78 million. Adjusted EBITDA is projected to be in a range of $11 million to $13 million. Diluted EPS is projected to be in a range of $0.07 to $0.11 per diluted share. Adjusted EPS is projected to be in a range of $0.29 to $0.33 per diluted share.
Positive Outlook
- Revenue is projected to be in a range of $72 million to $78 million.
- Adjusted EBITDA is projected to be in a range of $11 million to $13 million.
- Diluted EPS is projected to be in a range of $0.07 to $0.11 per diluted share.
- Adjusted EPS is projected to be in a range of $0.29 to $0.33 per diluted share.
- Full fiscal year 2020 revenue, Adjusted EBITDA and Adjusted EPS ranges are not being updated.
Challenges Ahead
- Diluted EPS range is being adjusted to reflect the anticipated impacts of interest expense on debt.
- Diluted EPS range is being adjusted to reflect amortization associated with the intangible assets created from the Opengear acquisition.
- The IoT Solutions segment's fiscal first quarter 2020 revenues decreased 14.6% from the same period in the prior fiscal year
- Net income decreased to $0.2 million compared to net income of $4.7 million for the fiscal first quarter of 2019.
- Net income per diluted share decreased to $0.01 per share compared to $0.17 for the fiscal first quarter of 2019.
Revenue & Expenses
Visualization of income flow from segment revenue to net income