Revenue for Fourth Fiscal Quarter and Full Year 2011 Increases by 9.7% and 11.8%, Respectively, Compared to Fourth Fiscal Quarter and Full Year 2010
Digi International® Inc. (NASDAQ: DGII)
Financial highlights for the fourth fiscal quarter and year ended September 30, 2011 include:
- Revenue of $51.8 million in the fourth fiscal quarter of 2011 grew by $4.5 million, or 9.7%, compared to $47.3 million in the fourth fiscal quarter of 2010. Revenue for the year ended September 2011 (fiscal 2011) was $204.2 million compared to $182.5 million for the year ended September 30, 2010 (fiscal 2010), an increase of $21.7 million or 11.8%.
- Diluted earnings per share for the fourth fiscal quarter and fiscal 2011 were $0.11 and $0.43, respectively, compared to diluted earnings per share of $0.09 and $0.36 for the fourth fiscal quarter and fiscal 2010, respectively.
- Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were $6.5 million, or 12.6% of net sales in the fourth fiscal quarter of 2011, compared to $5.9 million, or 12.4% of net sales in the fourth fiscal quarter of 2010. EBITDA were $25.5 million, or 12.5% of net sales for fiscal 2011, compared to $20.4 million, or 11.2% of net sales for fiscal 2010. Please refer to the table reconciling net income to EBITDA for the fourth fiscal quarter and full year 2011, which is provided later in this earnings release.
- Digi generated cash from operations of $21.8 million for fiscal year 2011 compared to $16.1 million generated in fiscal year 2010.
- Digi maintained a strong balance sheet throughout fiscal 2011. At September 30, 2011 there was no long-term debt and the current ratio was 8.3 to 1.
“Our strong organic revenue growth of 10% in fiscal 2010 and 11.8% in fiscal 2011 provides Digi with solid momentum going into fiscal 2012”, said Joe Dunsmore, Digi’s Chief Executive Officer.
Business Results for the Three Months Ended September 30, 2011
Revenue from embedded products in the fourth fiscal quarter of 2011 was $26.3 million compared to $21.9 million in the fourth fiscal quarter of 2010, an increase of $4.4 million or 20.5%. Revenue from non-embedded products was $25.5 million in the fourth fiscal quarter of 2011 compared to $25.4 million in the fourth fiscal quarter of 2010, an increase of $0.1 million. Net sales in the fourth fiscal quarter of 2011 were favorably impacted by foreign currency translation of $0.5 million when compared to the same period in the prior fiscal year.
Revenue from wireless products in the fourth fiscal quarter of 2011 was $22.7 million, or 43.8% of net sales, compared to $16.5 million, or 35.0% of net sales, in the fourth fiscal quarter of 2010, an increase of $6.2 million, or 37.3%. Revenue from wired products was $29.1 million, or 56.2% of net sales, in the fourth fiscal quarter of 2011 compared to $30.8 million, or 65.0% of net sales, in the fourth fiscal quarter of 2010, a decrease of $1.7 million, or 5.2%.
Fiscal 2011 Business Highlights:
Smart Grid Expansion
- With easy online and near real-time access to gas, water, and electric metering data, utilities can have expanded customer engagement opportunities to drive energy efficiency programs. Building on its strong relationship with Itron, Digi expanded its Digi X-Grid™ Solution to Itron ERT-enabled homes. Itron ERTs are widely deployed meters in the United States used by many electric, gas and water utilities. With the Digi X-Grid Solution, Itron ERT meters can now connect instantly to the Smart Grid without requiring a new meter.
- An existing relationship with Comverge for Demand Response and Energy Efficiency offerings was expanded to include the integration of Itron ERT meters.
- Digi demonstrated increasing Smart Grid momentum with several key customer implementations, including: Better Place and AddEnergie for electric vehicle networks, Powerdash for solar installations, Lessoil for energy conservation services, and E2America for commercial building energy management.
- Digi broadened its offering to utilities and energy providers by partnering with Calico Energy Services in support of Calico’s utility focused energy management solutions. These solutions enable utility offerings including residential and commercial load control.
iDigi® Device Cloud™
The iDigi Device Cloud connects things or devices to applications and people. It brings Digi’s 25 plus years of device knowledge and makes it immediately available to Internet-enable virtually anything, anywhere.
- Digi demonstrated how to connect remote devices easily over a cellular network with the launch of the iDigi® Gateway Development Kit.
- Digi introduced the ConnectPort® X3, a low-cost, iDigi cloud-connected, cellular gateway for monitoring and tracking remote assets and the Connectport® X3H, a ruggedized version for harsh environments.
- Digi launched the industry’s first system-on-module with Global 3G cellular connectivity. Featuring Qualcomm Gobi™ technology, the ConnectCore® 3G™ allows device manufacturers to develop devices that can connect virtually anywhere in the world to virtually any carrier, without changing hardware. And with integrated iDigi Device Cloud support, these same devices can be easily connected to virtually any application.
- In addition to the Smart Grid partners mentioned earlier, most of whom are using the iDigi Device Cloud, Digi has seen progress in other verticals, like tank monitoring and fleet or asset tracking. TankScan™, a division of ATEK Products, is using Digi’s wireless products and iDigi Device Cloud to enable remote access and management of storage tanks throughout the world. Inteligistics will be using Digi gateways, modules, and the iDigi Device Cloud to globally track tens of thousands of shipping containers for the U.S. Navy.
Other Key Strategic Relationships
- Digi extended its relationship with Freescale Semiconductor with the launch of the ConnectCore® i.MX embedded module product family. Spectrum Design Solutions, Digi’s wireless design services subsidiary, will also offer custom design support for companies developing wireless products with Freescale’s i.MX53 application processor.
- Digi collaborated with Sprint to provide the industry’s first commercial-grade integrated 4G routers for machine-to-machine (M2M) applications.
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