Press Release
<< Back
Digi International Reports Second Fiscal Quarter 2018 Results
Revenue Increases Over 20% from Prior Year and Beats Guidance
Net loss for the second fiscal quarter of 2018 was
Adjusted EBITDA in the second fiscal quarter of 2018 was
"Digi delivered strong growth with a combination of organic, SmartSense,
and Accelerated Concepts contributions. The market is responding
favorably to our IoT Products & Services offerings, while we continue to
streamline our operations. SmartSense, our recently rebranded IoT
Solutions business, extends its market leadership by growing to nearly
42,000 subscriber sites," said
Manufacturing Transition
Subsequent to the end of the second quarter of fiscal 2018, Digi
announced on
Stock Repurchase Program
Subsequent to end of the second fiscal quarter of 2018, on
|
Financial Results |
||||||||||||||||||||
| GAAP Results | ||||||||||||||||||||
| (in thousands, except per share data) | Q2 2018 | Q2 2017 | YTD 2018 | YTD 2017 | ||||||||||||||||
| Total Revenue | $ | 54,791 | $ | 45,615 | $ | 99,988 | $ | 90,790 | ||||||||||||
| Gross Profit | $ | 26,654 | $ | 21,902 | $ | 48,591 | $ | 43,355 | ||||||||||||
| Gross Margin | 48.6 | % | 48.0 | % | 48.6 | % | 47.8 | % | ||||||||||||
| Operating Income (Loss) | $ | 503 | $ | 1,512 | $ | (1,620 | ) | $ | 3,934 | |||||||||||
| Operating Income (Loss) as % of Total Revenue | 0.9 | % | 3.3 | % | (1.6 | )% | 4.3 | % | ||||||||||||
| Net (Loss) Income | $ | (357 | ) | $ | 1,331 | $ | (4,926 | ) | $ | 3,688 | ||||||||||
| Net (Loss) Income per Diluted Share | $ | (0.01 | ) | $ | 0.05 | $ | (0.18 | ) | $ | 0.14 | ||||||||||
| Non-GAAP Results* | ||||||||||||||||||||
| (in thousands, except per share data) | Q2 2018 | Q2 2017 | YTD 2018 | YTD 2017 | ||||||||||||||||
| Adjusted Net (Loss) Income | $ | (166 | ) | $ | 1,340 | $ | (1,970 | ) | $ | 3,593 | ||||||||||
| Adjusted Net (Loss) Income per Diluted Share | $ | (0.01 | ) | $ | 0.05 | $ | (0.07 | ) | $ | 0.13 | ||||||||||
| Adjusted EBITDA | 4,838 | 4,663 | 7,629 | 10,092 | ||||||||||||||||
| Adjusted EBITDA as % of Total Revenue | 8.8 | % | 10.2 | % | 7.6 | % | 11.1 | % | ||||||||||||
| Adjusted EBITDA per Diluted Share | $ | 0.18 | $ | 0.17 | $ | 0.28 | $ | 0.37 | ||||||||||||
| * A reconciliation of GAAP to non-GAAP financial measures appears at the end of this release. | ||||||||||||||||||||
|
Business Results for the Three Months Ended March 31, 2018 and 2017 |
|||||||||||||||||
| Revenue Detail QTD | |||||||||||||||||
| (in thousands) | Q2 2018 | Q2 2017 | Change | % Change | |||||||||||||
| Product | $ | 47,588 | $ | 41,766 | $ | 5,822 | 13.9 | % | |||||||||
| Services | 2,237 | 2,107 | 130 | 6.2 | % | ||||||||||||
| Solutions | 4,966 | 1,742 | 3,224 | 185.1 | % | ||||||||||||
| Total revenue | $ | 54,791 | $ | 45,615 | $ | 9,176 | 20.1 | % | |||||||||
| North America, primarily United States | $ | 39,412 | $ | 29,711 | $ | 9,701 | 32.7 | % | |||||||||
| Europe, Middle East and Africa | 9,504 | 9,545 | (41 | ) | (0.4 | )% | |||||||||||
| Asia | 4,778 | 5,370 | (592 | ) | (11.0 | )% | |||||||||||
| Latin America | 1,097 | 989 | 108 | 10.9 | % | ||||||||||||
| Total revenue | $ | 54,791 | $ | 45,615 | $ | 9,176 | 20.1 | % | |||||||||
Total revenue increased 20.1% to
Product
Product revenue increased by
Services
Services revenue increased by
Solutions
Solutions revenue increased by
Included in revenue performance for the year was a foreign currency
translation increase of
Gross profit was
Operating income for the second fiscal quarter of 2018 was
Net loss was
Adjusted EBITDA in the second fiscal quarter of 2018 was
|
Business Results for the Six Months Ended March 31, 2018 and 2017 |
|||||||||||||||||
| Revenue Detail YTD | |||||||||||||||||
| (in thousands) | Q2 2018 | Q2 2017 | Change | % Change | |||||||||||||
| Product | $ | 86,042 | $ | 84,939 | $ | 1,103 | 1.3 | % | |||||||||
| Services | 4,663 | 3,870 | 793 | 20.5 | % | ||||||||||||
| Solutions | 9,283 | 1,981 | 7,302 | 368.6 | % | ||||||||||||
| Total revenue | $ | 99,988 | $ | 90,790 | $ | 9,198 | 10.1 | % | |||||||||
| North America, primarily United States | $ | 68,991 | $ | 59,373 | $ | 9,618 | 16.2 | % | |||||||||
| Europe, Middle East and Africa | 19,660 | 19,356 | 304 | 1.6 | % | ||||||||||||
| Asia | 9,306 | 9,938 | (632 | ) | (6.4 | )% | |||||||||||
| Latin America | 2,031 | 2,123 | (92 | ) | (4.3 | )% | |||||||||||
| Total revenue | $ | 99,988 | $ | 90,790 | $ | 9,198 | 10.1 | % | |||||||||
Total revenue increased 10.1% to
Product
Product revenue increased by
Services
Services revenue increased by
Solutions
Solutions revenue increased by
Included in revenue performance for the year was a foreign currency
translation increase of
Gross profit was
Operating loss for the first six months of fiscal 2018 was
Net loss was
Adjusted EBITDA in the first six months of fiscal 2018 was
Balance Sheet, Liquidity and Capital Structure
Digi continues to maintain a strong balance sheet with no debt. As of
-
Cash and cash equivalents and marketable securities balance, including
long-term marketable securities, of
$59.6 million , a decrease of$55.4 million from the end of fiscal 2017. The decrease in cash is directly related to the purchase price and other costs associated with the TempAlert and Accelerated acquisitions in fiscal 2018. Please refer to the Condensed Consolidated Statements of Cash Flows for more information. -
Current and long-term contingent liabilities of
$8.3 million .
Customer Highlights
IoT PRODUCTS & SERVICES
- Central Transport, one of the fastest growing less than load (LTL) companies in their industry, manages a fleet of over 4,000 trucks and has created their own platform that integrates with the Digi WVA. The team at Digi provided them with the support that allowed them to launch a successful pilot, which led to a purchase order for their initial roll-out of 2,000 devices. Central Transport anticipates adding to their fleet and deploying 1,500-2,500 more WVAs annually.
-
A leading provider of construction materials supply chain solutions
has coupled their web-based products with the Digi Wireless Vehicle
Adapter (WVA). This web-based product suite reduces variable labor,
fuel, and maintenance costs by optimizing all aspects of
transportation planning and performance. The Company plans to deploy
the first 2,000 units in
June 2018 . -
One of the largest transit organizations in
North America selected Digi and Clever Devices to enhance and upgrade itsComputer Aided Dispatch (CAD) and Automatic Vehicle Location systems (AVL). Clever Devices designated Digi’s Transport WR44 Rugged and Railroad variant to drive the wireless connectivity. Over 4,000 devices are expected to be installed over the next 24 months. -
A large petrol distribution provider in
Eastern Europe plans to connect approximately 1,300 of their petrol stations with a cellular solution using Digi routers. - A French company, which is a leading operator of bike rental services for urban areas, has selected the WR11 XT LTE Cat 1 to operate their bike rental stations. The WR11 XT has proven robustness and reliability while LTE Cat 1 guarantees enough data throughput to support the service as well as network longevity. Approximately 800 stations are planned to be deployed over the next six months.
IoT SOLUTIONS
- One of the world’s largest pharmacy chains selected SmartSense by Digi™ and has commenced deployment into their retail pharmacies across the U.S. SmartSense will help automate and ensure the customer meets compliance requirements for continuous temperature monitoring of prescription drugs and vaccines. Deployment commenced in March and is expected to continue through the end of the fiscal year.
-
A leading pharmaceutical company selected SmartSense to monitor
approximately 300 pharmacy locations across
Canada . The solution will help eliminate the need for manual temperature logs completed by pharmacy employees and ensure pharmaceuticals are stored at temperature ranges that meet compliance standards. -
An industry-leading convenience store distributor in
North America selected SmartSense to monitor up to 1,700 multi-temp trailers and 32 distribution centers. This is an important validation of the value of an integrated end-to-end remote monitoring platform for the perishables supply chain. The customer views the SmartSense solution as a key tool to help them meet increasingly stringent regulatory requirements and improve driver productivity. -
Midland Transport, one of the top fleets in
Canada with over 1,700 trailers, purchased SmartSense to monitor medicine and vaccine temperatures during delivery to pharmacies. -
Canada Cartage, a top transportation fleet in
Canada with over 3,000 trailers, has selected SmartSense to monitor their fleet.
Fiscal 2018 Guidance
For the third fiscal quarter of 2018, Digi projects revenue to be in a
range of
For the full fiscal year 2018, Digi projects revenue to be in a range of
Second Fiscal Quarter 2018 Conference Call Details
As announced on
Digi invites all those interested in hearing management's discussion of its quarter to access a live webcast of the conference call through the investor relations section of Digi's website at www.digi.com. Participants may also join the call directly by dialing (855) 638-5675 and entering passcode 5990478. International participants may access the call by dialing (262) 912-4765 and entering passcode 5990478. A replay will be available within approximately three hours after the completion of the call, and for one week following the call, by dialing (855) 859-2056 for domestic participants or (404) 537-3406 for international participants and entering access code 5990478 when prompted. A replay of the webcast will be available for one week through Digi's website.
A copy of this earnings release can be accessed through the financial releases page of the investor relations section of Digi's website at www.digi.com.
For more news and information on
About
Forward-Looking Statements
This press release contains forward-looking statements that are based
on management’s current expectations and assumptions.These
statements often can be identified by the use of forward-looking
terminology such as "anticipate," "believe," "estimate," "looking
forward," "may," "will," "expect," "plan," "project," "should," or
"continue" or the negative thereof or other variations thereon or
similar terminology.Among other items, these statements relate
to expectations of the business environment in which the company
operates, projections of future performance, perceived marketplace
opportunities and statements regarding our mission and vision.Such
statements are not guarantees of future performance and involve certain
risks, uncertainties and assumptions.Among others, these include
risks related to the highly competitive market in which our company
operates, rapid changes in technologies that may displace products sold
by us, declining prices of networking products, our reliance on
distributors and other third parties to sell our products, delays in
product development efforts, uncertainty in user acceptance of our
products, the ability to integrate our products and services with those
of other parties in a commercially accepted manner, potential
liabilities that can arise if any of our products have design or
manufacturing defects, our ability to defend or settle satisfactorily
any litigation, uncertainty in global economic conditions and economic
conditions within particular regions of the world which could negatively
affect product demand and the financial solvency of customers and
suppliers, the impact of natural disasters and other events beyond our
control that could negatively impact our supply chain and customers,
potential unintended consequences associated with restructuring or other
similar business initiatives that may impact our ability to retain
important employees, the ability to achieve the anticipated benefits and
synergies associated with acquisitions or divestitures, and changes in
our level of revenue or profitability which can fluctuate for many
reasons beyond our control.These and other risks, uncertainties
and assumptions identified from time to time in our filings with the
Presentation of Non-GAAP Financial Measures
This release includes adjusted net income, adjusted net income per diluted share, adjusted EBITDA and adjusted EBITDA per diluted share, each of which is a non-GAAP measure.
We understand that there are material limitations on the use of non-GAAP measures.Non-GAAP measures are not substitutes for GAAP measures, such as net income, for the purpose of analyzing financial performance.The disclosure of these measures does not reflect all charges and gains that were actually recognized by the company.These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from non-GAAP measures used by other companies.In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.Additionally, we understand that Adjusted EBITDA does not reflect our cash expenditures, the cash requirements for the replacement of depreciated and amortized assets, or changes in or cash requirements for our working capital needs.
We believe that providing historical and adjusted income and income per diluted share, respectively, exclusive of such items as reversals of tax reserves, discrete tax benefits and restructuring permits investors to compare results with prior periods that did not include these items.Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of our comparative operating performance.In addition, certain of our stockholders have expressed an interest in seeing financial performance measures exclusive of the impact of matters such as the impact of decisions related to taxes and restructuring, which while important, are not central to the core operations of our business.Additionally, management believes that the presentation of adjusted EBITDA and adjusted EBITDA per diluted share as a percentage of revenue is useful because it provides a reliable and consistent approach to measuring our performance from year to year and in assessing our performance against that of other companies.We believe this information helps compare operating results and corporate performance exclusive of the impact of our capital structure and the method by which assets were acquired.Adjusted EBITDA is used as an internal metric for executive compensation, as well as incentive compensation for the broader employee base, and it is monitored quarterly for these purposes.
For more information, visit Digi's Web site at www.digi.com, or call 877-912-3444 (U.S.) or 952-912-3444 (International).
| Digi International Inc. | |||||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
|
Three months ended |
Six months ended March 31, |
||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Product | $ | 47,588 | $ | 41,766 | $ | 86,042 | $ | 84,939 | |||||||||||
| Services and solutions | 7,203 | 3,849 | 13,946 | 5,851 | |||||||||||||||
| Total revenue | 54,791 | 45,615 | 99,988 | 90,790 | |||||||||||||||
| Cost of sales: | |||||||||||||||||||
| Cost of product | 23,080 | 21,398 | 42,290 | 43,735 | |||||||||||||||
| Cost of services and solutions | 4,287 | 2,003 | 7,730 | 3,177 | |||||||||||||||
| Amortization of intangibles | 770 | 312 | 1,377 | 523 | |||||||||||||||
| Total cost of sales | 28,137 | 23,713 | 51,397 | 47,435 | |||||||||||||||
| Gross profit | 26,654 | 21,902 | 48,591 | 43,355 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing | 11,175 | 8,731 | 20,935 | 17,053 | |||||||||||||||
| Research and development | 8,617 | 6,979 | 16,368 | 13,884 | |||||||||||||||
| General and administrative | 6,359 | 4,680 | 12,908 | 8,484 | |||||||||||||||
| Total operating expenses | 26,151 | 20,390 | 50,211 | 39,421 | |||||||||||||||
| Operating income (loss) | 503 | 1,512 | (1,620 | ) | 3,934 | ||||||||||||||
| Other (expense) income, net: | |||||||||||||||||||
| Interest income, net | 34 | 110 | 239 | 236 | |||||||||||||||
| Other (expense) income, net | (527 | ) | (143 | ) | (572 | ) | 431 | ||||||||||||
| Total other (expense) income, net | (493 | ) | (33 | ) | (333 | ) | 667 | ||||||||||||
| Income (loss) before income taxes | 10 | 1,479 | (1,953 | ) | 4,601 | ||||||||||||||
| Income tax provision | 367 | 148 | 2,973 | 913 | |||||||||||||||
| Net (loss) income | $ | (357 | ) | $ | 1,331 | $ | (4,926 | ) | $ | 3,688 | |||||||||
| Net (loss) income per common share: | |||||||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.05 | $ | (0.18 | ) | $ | 0.14 | |||||||||
| Diluted | $ | (0.01 | ) | $ | 0.05 | $ | (0.18 | ) | $ | 0.14 | |||||||||
| Weighted average common shares: | |||||||||||||||||||
| Basic | 27,084 | 26,477 | 26,914 | 26,324 | |||||||||||||||
| Diluted | 27,084 | 27,252 | 26,914 | 27,134 | |||||||||||||||
| Digi International Inc. | ||||||||||||||||||||
| Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
|
Three months ended March 31, |
Six months ended March 31, |
|||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
| Net (loss) income | $ | (357 | ) | $ | 1,331 | $ | (4,926 | ) | $ | 3,688 | ||||||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
| Foreign currency translation adjustment | 1,787 | 1,277 | 2,058 | (2,478 | ) | |||||||||||||||
| Change in net unrealized (loss) gain on investments | (19 | ) | 14 | (40 | ) | (10 | ) | |||||||||||||
| Less income tax benefit (provision) | 5 | (5 | ) | 8 | 4 | |||||||||||||||
| Reclassification of realized loss on investments included in net income (1) | 31 | — | 31 | — | ||||||||||||||||
| Less income tax benefit (2) | (8 | ) | — | (8 | ) | — | ||||||||||||||
| Other comprehensive income (loss), net of tax | 1,796 | 1,286 | 2,049 | (2,484 | ) | |||||||||||||||
| Comprehensive income (loss) | $ | 1,439 | $ | 2,617 | $ | (2,877 | ) | $ | 1,204 | |||||||||||
|
(1) Recorded in Other (expense) income, net on our Condensed Consolidated Statements of Operations. |
||||||||||||||||||||
|
(2) Recorded in Income tax provision in our Condensed Consolidated Statements of Operations. |
||||||||||||||||||||
| Digi International Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
|
March 31, |
September 30, |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 52,391 | $ | 78,222 | ||||
| Marketable securities | 4,757 | 32,015 | ||||||
| Accounts receivable, net | 39,789 | 28,855 | ||||||
| Inventories | 39,670 | 30,238 | ||||||
| Receivable from sale of business | — | 1,998 | ||||||
| Other | 3,694 | 3,032 | ||||||
| Total current assets | 140,301 | 174,360 | ||||||
| Marketable securities, long-term | 2,489 | 4,753 | ||||||
| Property, equipment and improvements, net | 12,145 | 12,801 | ||||||
| Identifiable intangible assets, net | 44,301 | 11,800 | ||||||
| Goodwill | 155,982 | 131,995 | ||||||
| Deferred tax assets | 3,576 | 9,211 | ||||||
| Other | 542 | 269 | ||||||
| Total assets | $ | 359,336 | $ | 345,189 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,024 | $ | 6,240 | ||||
| Accrued compensation | 6,121 | 4,325 | ||||||
| Accrued warranty | 1,348 | 987 | ||||||
| Accrued professional fees | 896 | 928 | ||||||
| Unearned revenue | 4,339 | 1,343 | ||||||
| Contingent consideration on acquired businesses | 3,759 | 388 | ||||||
| Accrued restructuring | 636 | 1,656 | ||||||
| Other | 2,858 | 2,113 | ||||||
| Total current liabilities | 30,981 | 17,980 | ||||||
| Income taxes payable | 692 | 877 | ||||||
| Deferred tax liabilities | 455 | 534 | ||||||
| Contingent consideration on acquired businesses | 4,504 | 6,000 | ||||||
| Other non-current liabilities | 676 | 654 | ||||||
| Total liabilities | 37,308 | 26,045 | ||||||
| Total stockholders’ equity | 322,028 | 319,144 | ||||||
| Total liabilities and stockholders’ equity | $ | 359,336 | $ | 345,189 | ||||
| Digi International Inc. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Six months ended March 31, | ||||||||||
| 2018 | 2017 | |||||||||
| Operating activities: | ||||||||||
| Net (loss) income | $ | (4,926 | ) | $ | 3,688 | |||||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||
| Depreciation of property, equipment and improvements | 1,406 | 1,449 | ||||||||
| Amortization of identifiable intangible assets | 4,287 | 941 | ||||||||
| Stock-based compensation | 2,378 | 2,328 | ||||||||
| Excess tax benefits from stock-based compensation | — | (315 | ) | |||||||
| Deferred income tax provision | 2,682 | 242 | ||||||||
| Change in fair value of contingent consideration | (425 | ) | (684 | ) | ||||||
| Bad debt/product return provision | 395 | 296 | ||||||||
| Inventory obsolescence | 900 | 600 | ||||||||
| Other | 30 | 51 | ||||||||
| Changes in operating assets and liabilities (net of acquisitions) | (11,708 | ) | (9,473 | ) | ||||||
| Net cash used in operating activities | (4,981 | ) | (877 | ) | ||||||
| Investing activities: | ||||||||||
| Purchase of marketable securities | — | (33,470 | ) | |||||||
| Proceeds from maturities and sales of marketable securities | 29,513 | 57,039 | ||||||||
| Proceeds from sale of Etherios | 2,000 | 3,000 | ||||||||
| Acquisition of businesses, net of cash acquired | (56,588 | ) | (29,994 | ) | ||||||
| Purchase of property, equipment, improvements and certain other identifiable intangible assets | (785 | ) | (984 | ) | ||||||
| Net cash used in investing activities | (25,860 | ) | (4,409 | ) | ||||||
| Financing activities: | ||||||||||
| Acquisition earn-out payments | — | (518 | ) | |||||||
| Excess tax benefits from stock-based compensation | — | 315 | ||||||||
| Proceeds from stock option plan transactions | 3,427 | 3,246 | ||||||||
| Proceeds from employee stock purchase plan transactions | 618 | 479 | ||||||||
| Purchases of common stock | (681 | ) | (587 | ) | ||||||
| Net cash provided by financing activities | 3,364 | 2,935 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,646 | (1,481 | ) | |||||||
| Net decrease in cash and cash equivalents | (25,831 | ) | (3,832 | ) | ||||||
| Cash and cash equivalents, beginning of period | 78,222 | 75,727 | ||||||||
| Cash and cash equivalents, end of period | $ | 52,391 | $ | 71,895 | ||||||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||||
| Liability related to acquisition of business | $ | (2,300 | ) | $ | (1,310 | ) | ||||
| Accrual for purchase of property, equipment, improvements and certain other identifiable intangible assets | $ | (27 | ) | $ | (66 | ) | ||||
Non-GAAP Financial Measures
TABLE 1
|
Reconciliation of Net (Loss) Income and Net (Loss) Income per Diluted Share to Adjusted Net (Loss) Income and |
|||||||||||||||||||||||||||||||||||||
| Adjusted Net (Loss) Income per Diluted Share | |||||||||||||||||||||||||||||||||||||
|
(In thousands of dollars, except per share amounts) |
|||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | Six months ended March 31, | ||||||||||||||||||||||||||||||||||||
| 2018 | 2017 |
2018 |
2017 | ||||||||||||||||||||||||||||||||||
| Net (loss) income and net (loss) income per diluted share | $ | (357 | ) | $ | (0.01 | ) | $ | 1,331 | $ | 0.05 | $ | (4,926 | ) | $ | (0.18 | ) | $ | 3,688 | $ | 0.14 | |||||||||||||||||
| Discrete tax expense (benefits) (1) | 191 | 0.01 | 9 | — | 2,956 | 0.11 | (95 | ) | 0.00 | ||||||||||||||||||||||||||||
| Adjusted net (loss) income and adjusted net (loss) income per diluted share (2) | $ | (166 | ) | $ | (0.01 | ) | $ | 1,340 | $ | 0.05 | $ | (1,970 | ) | $ | (0.07 | ) | $ | 3,593 | $ | 0.13 | |||||||||||||||||
| Diluted weighted average common shares | 27,084 | 27,252 | 26,914 | 27,134 | |||||||||||||||||||||||||||||||||
|
(1) Discrete tax expense (benefits) includes one-time adjustments for the re-measurement of deferred tax assets and adoption of ASU 2016-09 relating to the accounting for the tax effects of stock compensation. This was partially offset by reversals of tax reserves due to the expiration of statutes of limitation. |
|||||||||||||||||||||||||||||||||||||
|
(2) Adjusted net (loss) income per diluted share may not add due to the use of rounded numbers. |
|||||||||||||||||||||||||||||||||||||
TABLE 2
| Reconciliation of Net (Loss) Income to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||
|
(In thousands of dollars) |
||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | Six months ended March 31, | |||||||||||||||||||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
|
% of |
% of |
% of |
% of |
|||||||||||||||||||||||||||||||||
| Total revenue | $ | 54,791 | 100.0 | % | $ | 45,615 | 100.0 | % | $ | 99,988 | 100.0 | % | $ | 90,790 | 100.0 | % | ||||||||||||||||||||
| Net (loss) income | $ | (357 | ) | $ | 1,331 | $ | (4,926 | ) | $ | 3,688 | ||||||||||||||||||||||||||
| Interest income, net | (34 | ) | (110 | ) | (239 | ) | (236 | ) | ||||||||||||||||||||||||||||
| Income tax provision | 367 | 148 | 2,973 | 913 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,288 | 1,389 | 5,693 | 2,390 | ||||||||||||||||||||||||||||||||
| Stock-based compensation | 1,325 | 1,155 | 2,378 | 2,328 | ||||||||||||||||||||||||||||||||
| Acquisition expense | 249 | 750 | 1,750 | 1,009 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 4,838 | 8.8 | % | $ | 4,663 | 10.2 | % | $ | 7,629 | 7.6 | % | $ | 10,092 | 11.1 | % | ||||||||||||||||||||
| Adjusted EBITDA per diluted share | $ | 0.18 | $ | 0.17 | $ | 0.28 | $ | 0.37 | ||||||||||||||||||||||||||||
| Diluted weighted average common shares | 27,084 | 27,252 | 26,914 | 27,134 | ||||||||||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426006442/en/
Source:
Digi International Inc.
Investor Contact:
Mike
Goergen, 952-912-3737
Senior Vice President, Chief Financial
Officer and Treasurer
mike.goergen@digi.com