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Document and Entity Information (USD $)
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9 Months Ended | ||
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Jun. 30, 2011
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Aug. 03, 2011
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Mar. 31, 2010
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| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | DIGI INTERNATIONAL INC | ||
| Entity Central Index Key | 0000854775 | ||
| Document Type | 10-Q | ||
| Document Period End Date | Jun. 30, 2011 | ||
| Amendment Flag | false | ||
| Document Fiscal Year Focus | 2011 | ||
| Document Fiscal Period Focus | Q3 | ||
| Current Fiscal Year End Date | --09-30 | ||
| Entity Well-known Seasoned Issuer | No | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Accelerated Filer | ||
| Entity Public Float | $ 262,852,499 | ||
| Entity Common Stock, Shares Outstanding | 25,539,676 |
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If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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| Condensed Consolidated Statements of Operations [Abstract] | ||||
| Net sales | $ 54,274 | $ 47,238 | $ 152,324 | $ 135,282 |
| Cost of sales (exclusive of amortization of purchased and core technology shown separately below) | 24,877 | 22,496 | 70,909 | 63,913 |
| Amortization of purchased and core technology | 642 | 1,024 | 2,343 | 3,190 |
| Gross profit | 28,755 | 23,718 | 79,072 | 68,179 |
| Operating expenses: | ||||
| Sales and marketing | 10,134 | 9,089 | 29,464 | 27,932 |
| Research and development | 7,860 | 7,159 | 23,517 | 20,723 |
| General and administrative | 4,597 | 4,926 | 13,670 | 13,308 |
| Restructuring | (70) | (352) | ||
| Total operating expenses | 22,591 | 21,174 | 66,581 | 61,611 |
| Operating income | 6,164 | 2,544 | 12,491 | 6,568 |
| Other (expense) income, net: | ||||
| Interest income | 61 | 94 | 187 | 277 |
| Interest expense | (26) | (26) | (79) | (110) |
| Other (expense) income | (378) | (16) | (613) | 247 |
| Total other (expense) income, net | (343) | 52 | (505) | 414 |
| Income before income taxes | 5,821 | 2,596 | 11,986 | 6,982 |
| Income tax provision (benefit) | 2,206 | (1,216) | 3,816 | 285 |
| Net income | $ 3,615 | $ 3,812 | $ 8,170 | $ 6,697 |
| Net income per common share: | ||||
| Basic | $ 0.14 | $ 0.15 | $ 0.32 | $ 0.27 |
| Diluted | $ 0.14 | $ 0.15 | $ 0.32 | $ 0.27 |
| Weighted average common shares: | ||||
| Basic | 25,369 | 24,930 | 25,236 | 24,815 |
| Diluted | 25,879 | 25,272 | 25,687 | 25,123 |
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- Definition
Total other (expense) income, net No definition available.
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- Definition
The aggregate costs related to goods produced and sold and services rendered by an entity during the reporting period. This excludes costs incurred during the reporting period related to financial services rendered and other revenue generating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of expense recognized in the current period that reflects the allocation of the costs of intangible assets over the expected benefit period of such assets. This element applies only to intangible assets used in the production of goods. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense. No definition available.
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The net result for the period of deducting operating expenses from operating revenues. No definition available.
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- Definition
The net amount of other income and expense amounts, the components of which are not separately disclosed on the income statement, resulting from ancillary business-related activities (that is, excluding major activities considered part of the normal operations of the business) also known as other nonoperating income (expense) recognized for the period. Such amounts may include: (a) dividends, (b) interest on securities, (c) net gains or losses on securities, (d) unusual costs, (e) gains or losses on foreign exchange transactions, and (f) miscellaneous other income and expense items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The costs incurred in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, excluding in-process research and development acquired in a business combination consummated during the period. Excludes software research and development, which has a separate concept. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount charged against earnings in the period for incurred and estimated costs associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding asset retirement obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total revenue from sale of goods and services rendered during the reporting period, in the normal course of business, reduced by sales returns and allowances, and sales discounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total amount of expenses directly related to the marketing or selling of products or services. No definition available.
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- Definition
The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Deferred payment on acquisition No definition available.
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all currently due domestic and foreign income tax obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all domestic and foreign income tax obligations due beyond one year or the operating cycle, whichever is longer. Alternate captions include income taxes payable, noncurrent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Investments in debt and equity securities which are categorized neither as trading securities nor held-to-maturity securities and which are intended be sold or mature within one year from the balance sheet date or the normal operating cycle, whichever is longer. Such securities are reported at fair value; unrealized gains (losses) related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain (loss) of an Available-for-sale security that is designated as being hedged in a fair value hedge is recognized in earnings during the period of the hedge, as are other than temporary declines in fair value below the cost basis for investments in equity securities and debt securities that an entity intends to sell or it is more likely than not that it will be required to sell before the recovery of its amortized cost basis. Other than temporary declines in fair value below the cost basis for debt securities categorized as Available-for-sale that an entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before the recovery of its amortized cost basis are bifurcated into credit losses and losses related to all other factors. Other than temporary declines in fair value below cost basis related to credit losses are recognized in earnings, and losses related to all other factors are recognized in other comprehensive income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Such securities are reported at fair value; unrealized gains (losses) related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain (loss) of an Available-for-sale security that is designated as being hedged in a fair value hedge is recognized in earnings during the period of the hedge, as are other than temporary declines in fair value below the cost basis for investments in equity securities and debt securities that an entity intends to sell or it is more likely than not that it will be required to sell before the recovery of its amortized cost basis. Other than temporary declines in fair value below the cost basis for debt securities categorized as Available-for-sale that an entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before the recovery of its amortized cost basis are bifurcated into credit losses and losses related to all other factors. Other than temporary declines in fair value below cost basis related to credit losses are recognized in earnings, and losses related to all other factors are recognized in other comprehensive income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, are classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward is presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, is classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise separates deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, are classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of the carrying values as of the balance sheet date of obligations incurred through that date and payable for obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate sum of gross carrying value of a major finite-lived intangible asset class, less accumulated amortization and any impairment charges. A major class is composed of intangible assets that can be grouped together because they are similar, either by their nature or by their use in the operations of a company. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed in the balance sheet. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The total of the amounts paid in advance for capitalized costs that will be expensed with the passage of time or the occurrence of a triggering event, and will be charged against earnings within one year or the normal operating cycle, if longer, and the aggregate carrying amount of current assets, as of the balance sheet date, not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The amount allocated to treasury stock. Treasury stock is common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
|
Jun. 30, 2011
|
Sep. 30, 2010
|
|---|---|---|
| Stockholders' equity: | ||
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, share authorized | 2,000,000 | 2,000,000 |
| Preferred stock, share issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value | $ 0.01 | $ 0.01 |
| Common stock, share authorized | 60,000,000 | 60,000,000 |
| Common stock, share issued | 28,947,903 | 28,666,311 |
| Treasury stock, shares | 3,497,375 | 3,584,215 |
| X | ||||||||||
|
- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes related preferred shares that were issued, repurchased, and remain in the treasury). May be all or portion of the number of preferred shares authorized. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Other No definition available.
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The amount of expense recognized in the current period that reflects the allocation of the cost of tangible assets over the assets' useful lives. Includes production and non-production related depreciation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from equity-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified equity-based compensation) recognized on the entity's tax return exceeds compensation cost from equity-based compensation recognized in financial statements. This element reduces net cash provided by operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The increase (decrease) during the reporting period of all assets and liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Charge to cost of goods sold that represents the reduction of the carrying amount of inventory, generally attributable to obsolescence or market conditions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow to acquire debt and equity securities not classified as either held-to-maturity securities or trading securities which would be classified as available-for-sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow associated with the sale or maturity (principal being due) of securities not classified as either held-to-maturity securities or trading securities which are classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from the sale of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The cash inflow associated with the amount received from holders exercising their stock options. This item inherently excludes any excess tax benefit, which the entity may have realized and reported separately. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
|
- Definition
The cash inflow associated with the amount received from the stock plan during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for the obligation for a lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
Amount of any reversal and other adjustment made during the period to the amount of a previously accrued liability for a specified type of restructuring cost, excluding adjustments for costs incurred during the period, costs settled during the period, and foreign currency translation adjustments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies
|
9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Jun. 30, 2011
|
|||||||
| Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies [Abstract] | |||||||
| BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation
The interim unaudited condensed consolidated financial statements included in this Form 10-Q have
been prepared by Digi International Inc. (the “Company,” “Digi,” “we,” “our,” or “us”) pursuant to
the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain
information and footnote disclosures, normally included in consolidated financial statements
prepared in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”), have been condensed or omitted, pursuant to such rules and regulations.
These condensed consolidated financial statements should be read in conjunction with the
consolidated financial statements and related notes thereto, including (but not limited to) the
summary of significant accounting policies, presented in our Annual Report on Form 10-K for the
year ended September 30, 2010 as filed with the SEC (“2010 Financial Statements”).
The condensed consolidated financial statements presented herein reflect, in the opinion of
management, all adjustments which consist only of normal, recurring adjustments necessary for a
fair statement of the condensed consolidated financial position and the condensed consolidated
results of operations and cash flows for the periods presented. The condensed consolidated results
of operations for any interim period are not necessarily indicative of results for the full year.
The year-end condensed balance sheet data were derived from our 2010 Financial Statements, but do
not include all disclosures required by U.S. GAAP.
In connection with preparing the unaudited condensed consolidated financial statements for the nine
months ended June 30, 2011, we have evaluated subsequent events for potential recognition and
disclosure through the date of this filing.
Recently Issued Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
No. 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. This
guidance eliminates the option to report other comprehensive income and its components in the
consolidated statement of stockholders’ equity. Rather it requires that all non-owner changes in
stockholders’ equity be presented in either a single continuous statement of comprehensive income
or in two separate but consecutive statements. This guidance also requires us to present on the
face of the financial statements any reclassification adjustments for items that are reclassified
from other comprehensive income to net income. The guidance is effective for fiscal years, and
interim periods within those years, beginning after December 15, 2011. We will adopt this guidance
beginning with our fiscal quarter ending December 31, 2012. The adoption of this guidance will
have no effect on our consolidated financial position or results of operations, as it will only
impact how certain information related to other comprehensive income is presented in our
consolidated financial statements.
In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Fair Value Measurements
(Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in
U.S. GAAP and IFRSs”. This guidance changes the wording used to describe many of the requirements
in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements
to ensure consistency between U.S. GAAP and International Financial Reporting Standards (“IFRS”).
This guidance is to be applied prospectively and is effective during interim and annual periods
beginning after December 15, 2011. We will adopt this guidance beginning with our fiscal quarter
ending March 31, 2012. We do not expect this guidance to have a material impact on our
consolidated financial statements.
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| X | ||||||||||
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- Details
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| X | ||||||||||
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- Definition
The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. No definition available.
|
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Comprehensive Income
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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| Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPREHENSIVE INCOME |
2. COMPREHENSIVE INCOME
Comprehensive income is comprised of net income, foreign currency translation adjustments and
unrealized gain (loss) on available-for-sale marketable securities, net of tax. Comprehensive
income was (in thousands):
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- Details
|
| X | ||||||||||
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- Definition
The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Earnings Per Share
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
Jun. 30, 2011
|
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| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS PER SHARE |
3. EARNINGS PER SHARE
Basic net income per common share is calculated based on the weighted average number of common
shares outstanding during the period. Diluted net income per common share is computed by dividing
net income by the weighted average number of common and potentially dilutive common shares
outstanding during the period. Potentially dilutive common shares of our stock result from
dilutive common stock options and shares purchased through our employee stock purchase plan.
The following table is a reconciliation of the numerators and denominators in the net income per
common share calculations (in thousands, except per common share data):
Because their effect would be anti-dilutive, certain potentially dilutive shares related
to stock options to purchase common shares were not included in the computation of diluted
earnings per common share set forth above as the options’ exercise prices were greater than
the average market price of our common shares. For the three and nine month periods ended
June 30, 2011, there were 1,921,684 and 1,767,934 potentially dilutive shares related to such
stock options, respectively. For the three and nine month periods ended June 30, 2010, there
were 2,482,104 and 2,726,104 potentially dilutive shares related to such stock options,
respectively.
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|
- Details
|
| X | ||||||||||
|
- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Selected Balance Sheet Data
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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| Selected Balance Sheet Data [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED BALANCE SHEET DATA |
4. SELECTED BALANCE SHEET DATA
(in thousands)
Inventories are stated at the lower of cost or market value, with cost determined using the
first-in, first-out method.
|
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- Details
|
| X | ||||||||||
|
- Definition
The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. No definition available.
|
|
Acquisition
|
9 Months Ended |
|---|---|
|
Jun. 30, 2011
|
|
| Acquisition [Abstract] | |
| ACQUISITION |
5. ACQUISITION
Spectrum Design Solutions, Inc.
On July 23, 2008, we acquired Spectrum Design Solutions, Inc. (“Spectrum”), a company that performs
wireless design services. Spectrum is now a wholly owned subsidiary. The acquisition was
structured as a merger with a cash purchase price of $10.0 million. Of this amount, $4.0 million
was paid on the acquisition date, $3.0 million was paid in January 2010, and the remaining $3.0
million was paid in July 2011. The July 2011 deferred payment of $3.0 million was recorded as a
liability on our consolidated balance sheet at June 30, 2011 at its then current net present value.
Implied interest was accrued on this value until the time the final payment was made in July 2011.
|
| X | ||||||||||
|
- Definition
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
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Marketable Securities
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Jun. 30, 2011
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| Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MARKETABLE SECURITIES |
6. MARKETABLE SECURITIES
Our marketable securities consist of certificates of deposit, commercial paper, corporate bonds and
government municipal bonds.
We analyze our available-for-sale marketable securities for impairment on an ongoing basis. We
consider factors such as the length of time and extent to which the securities have been in an
unrealized loss position and the trend of any unrealized losses. We also consider whether an
unrealized loss is a temporary loss or an other-than-temporary loss such as: (a) whether we have
the intent to sell the security, or (b) whether it is more likely than not that we will be required
to sell the security before its anticipated recovery.
In order to estimate the fair value for each security in our investment portfolio, where available,
we obtain quoted market prices and trading activity for each security. We also review the
financial solvency of each security issuer and obtain other relevant information from our
investment advisor. As of June 30, 2011, 31 of our securities were trading below our amortized
cost basis. We determined each decline in value to be temporary based upon the above described
factors. We expect to realize the fair value of these securities, plus accrued interest, either at
the time of maturity or when the security is sold.
All of our current holdings are classified as available-for-sale marketable securities and are
recorded at fair value on our consolidated balance sheet with the unrealized gains and losses
recorded in accumulated other comprehensive loss.
At June 30, 2011 our marketable securities were (in thousands):
At September 30, 2010 our marketable securities were (in thousands):
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- Definition
Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value Measurements
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Jun. 30, 2011
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| Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS |
7. FAIR VALUE MEASUREMENTS
Fair value is defined as the amount that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants as of the measurement
date. This standard also establishes a hierarchy for inputs used in measuring fair value. This
standard maximizes the use of observable inputs and minimizes the use of unobservable inputs by
requiring that the most observable inputs be used when available. Observable inputs are inputs
market participants would use in valuing the asset or liability based on market data obtained from
independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors
market participants would use in valuing the asset or liability based upon the best information
available in the circumstances. The categorization of financial assets and liabilities within the
valuation hierarchy is based upon the lowest level of input that is significant to the fair value
measurement.
The hierarchy is broken down into the following three levels:
Fair value is applied to financial assets such as our marketable securities, which are classified
and accounted for as available-for-sale. These items are stated at fair value at each reporting
period using the above guidance.
The following tables provide information by level for financial assets that are measured at fair
value on a recurring basis (in thousands):
Cash equivalents are measured at fair value using quoted market prices in active markets for
identical assets. We value our Level 2 assets using inputs that are based on market indices of
similar assets within an active market. There were no transfers in to or out of our Level 2
financial assets during the nine months ended June 30, 2011.
We had no financial assets valued with Level 3 inputs as of June 30, 2011 nor did we purchase or
sell any Level 3 financial assets during the nine months ended June 30, 2011.
The use of different assumptions, applying different judgment to matters that are inherently
subjective and changes in future market conditions could result in different estimates of fair
value of our securities, currently and in the future. If market conditions deteriorate, we may
incur impairment charges for securities in our investment portfolio.
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- Definition
The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Goodwill and Other Identifiable Intangible Assets
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Jun. 30, 2011
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| Goodwill and Other Identifiable Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS |
8. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS
Amortizable identifiable intangible assets were (in thousands):
Amortization expense was $1.5 million and $1.9 million for the three month periods ended June
30, 2011 and 2010, respectively. Amortization expense was $4.9 million and $5.7 million for the
nine months ended June 30, 2011 and 2010, respectively. Amortization expense is recorded on our
consolidated statement of operations within cost of sales, amortization of purchased and core
technology, which is a component of total cost of sales, and in general and administrative expense.
Estimated amortization expense related to identifiable intangible assets for the remainder of
fiscal 2011 and the five succeeding fiscal years is (in thousands):
The changes in the carrying amount of goodwill were (in thousands):
Goodwill is tested for impairment on an annual basis as of June 30, or more frequently if events or
circumstances occur which could indicate impairment. As of the close of business on June 30, 2011,
our stock price was $13.00. Based on the common shares outstanding at June 30, 2011 of 25,450,528
our market capitalization was $330.9 million compared to our net asset carrying value of $257.2
million. As the fair value exceeded the carrying value of net assets by a significant percentage,
we determined that we were not at a level of risk of failing the step one test for recognition and
measurement of an impairment loss.
We have defined the criteria that will result in additional interim goodwill impairment testing.
If these criteria are met, we will undertake the analysis to determine whether a goodwill
impairment has occurred, which could have a material effect on our consolidated financial position
and results of operations. The evaluation of asset impairment requires us to make assumptions
about future cash flows and revenues. These assumptions require significant judgment and actual
results may differ from assumed or estimated amounts. If these estimates and assumptions change,
we may be required to recognize impairment losses in the future.
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The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Income Taxes
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Jun. 30, 2011
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| Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES |
9. INCOME TAXES
Income
taxes have been provided at an overall effective rate of 31.8% and 4.1%
for the nine month periods ended June 30, 2011 and 2010, respectively. Our effective tax rate will
vary based on a variety of factors, including overall profitability, the geographical mix of income
before taxes and related statutory tax rate in each jurisdiction, and discrete events, such as settlements of
audits.
In the nine month period ended June 30, 2011, we recorded a discrete tax benefit of $0.6 million.
This benefit primarily resulted from the reversal of tax reserves from various jurisdictions,
primarily foreign, related to the expiration of the statutes of limitations as well as from the
enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
This law extended the research and development tax credit that allowed us to record tax credits
earned during the last three quarters of fiscal 2010 in the first quarter of fiscal 2011. This
benefit reduced our effective tax rate by 4.8 percentage points for the nine month period ended
June 30, 2011 to 31.8%.
In the third quarter of fiscal 2010, we recorded a discrete tax benefit of $2.2 million due to the
reversal of domestic tax reserves associated with the statutory closing of a prior tax year and the
conclusion of an audit of prior tax years. Further, in the first quarter of fiscal 2010, we
recorded a discrete tax benefit of $0.1 million related to an expiration of statutes of
limitations. These discrete tax benefits reduced our effective tax rate by 32.5 percentage points
for the nine months ended June 30, 2010 to 4.1%.
A reconciliation of the beginning and ending amount of uncertain tax positions is (in thousands):
The total amount of unrecognized tax benefits that, if recognized, would affect our effective
tax rate is $1.7 million.
We recognize interest and penalties related to income tax matters in income tax expense. During
the nine months ended June 30, 2011, we recognized a minimal benefit primarily due to the reversal
of reserves related to the expiration of the statutes of limitations. During the nine months ended
June 30, 2010 we recognized a net benefit of $0.1 million of interest and penalties related to
uncertain tax positions in the provision for income taxes. As of June 30, 2011 and September 30,
2010, we had accrued interest and penalties related to unrecognized tax benefits of $0.5 million
and $0.6 million, respectively, included in long-term income taxes payable on our condensed
consolidated balance sheets.
There are no tax positions for which it is reasonably possible that the total amounts of
unrecognized tax benefits will increase or decrease significantly over the next 12 months.
We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S. Accordingly, we
must determine the appropriate allocation of income to each of these jurisdictions. This
determination requires us to make several estimates and assumptions. Tax audits associated with
the allocation of this income may require an extended period of time to resolve and may result in
adjustments to our income tax balances in those years that are material to our consolidated
financial position and results of operations. We are no longer subject to income tax examination
for tax years prior to fiscal 2009 with respect to U.S. federal income tax authorities and fiscal
2007 with respect to foreign income tax authorities. Further, we are no longer subject to income
tax examination for tax years generally before fiscal 2006 with respect to U.S. state taxing
authorities, consisting primarily of Minnesota and California.
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- Definition
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Product Warranty Obligation
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| PRODUCT WARRANTY OBLIGATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PRODUCT WARRANTY OBLIGATION |
10. PRODUCT WARRANTY OBLIGATION
In general, we warrant our products to be free from defects in material and workmanship under
normal use and service. The warranty periods range from one to five years from the date of
receipt. We have the option to either repair or replace products we deem defective with
regard to material or workmanship. Estimated warranty costs are accrued in the period that
the related revenue is recognized based upon an estimated average per unit repair or
replacement cost applied to the estimated number of units under warranty. These estimates are
based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the
adequacy of the warranty accrual.
The following table summarizes the activity associated with the product warranty accrual (in
thousands):
We are not responsible and do not warrant that custom software versions, created by original
equipment manufacturer (OEM) customers, based upon our software source code will function in a
particular way, will conform to any specifications or are fit for any particular purpose.
Further, we do not indemnify these customers from any third-party liability as it relates to
or arises from any customization or modifications made by the OEM customer.
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The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Contingencies
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Jun. 30, 2011
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| Contingencies [Abstract] | |
| CONTINGENCIES |
11. CONTINGENCIES
Contingent obligations
Initial Public Offering Securities Litigation
On April 19, 2002, a consolidated amended class action complaint was filed in the United States
District Court for the Southern District of New York asserting claims relating to the initial
public offering (“IPO”) of our subsidiary NetSilicon, Inc. and approximately 300 other public
companies. We acquired NetSilicon on February 13, 2002. The complaint names us as a defendant
along with NetSilicon, certain of its officers and certain underwriters involved in NetSilicon’s
IPO, among numerous others, and asserts, among other things, that NetSilicon’s IPO prospectus and
registration statement violated federal securities laws because they contained material
misrepresentations and/or omissions regarding the conduct of NetSilicon’s IPO underwriters in
allocating shares in NetSilicon’s IPO to the underwriters’ customers. We believe that the claims
against the NetSilicon defendants are without merit and have defended the litigation vigorously.
Pursuant to a stipulation between the parties, the two named officers were dismissed from the
lawsuit, without prejudice, on October 9, 2002.
As previously disclosed, the parties advised the District Court on February 25, 2009 that they had
reached an agreement-in-principle to settle the litigation in its entirety. A stipulation of
settlement was filed with the District Court on April 2, 2009. On June 9, 2009, the District Court
preliminarily approved the proposed global settlement. Notice was provided to the class, and a
settlement fairness hearing, at which members of the class had an opportunity to object to the
proposed settlement, was held on September 10, 2009. On October 6, 2009, the District Court issued
an order granting final approval to the settlement. Ten appeals initially were filed objecting to
the definition of the settlement class and fairness of the settlement. Five of those appeals were
dismissed with prejudice on October 6, 2010. On May 17, 2011, the Court of Appeals dismissed four
of the remaining appeals and remanded the final appeal to the District Court to determine whether
the appellant has standing to object to the settlement. The District Court has yet to rule on that
issue.
Under the settlement, our insurers are to pay the full amount of settlement share allocated to us,
and we would bear no financial liability beyond our deductible of $250,000 per claim. While there
can be no guarantee as to the ultimate outcome of this pending lawsuit, we expect that our
liability insurance will be adequate to cover any potential unfavorable outcome, less the
applicable deductible per claim. As of June 30, 2011, we have an accrued liability for the
anticipated settlement of $300,000, which we believe is adequate and reflects the amount of loss
that is probable, and a receivable related to the insurance proceeds of $50,000. This $50,000
represents the anticipated settlement of $300,000 less our $250,000 deductible. In the event we
should have losses that exceed the limits of the liability insurance, the losses could have a
material adverse effect on our business and our consolidated results of operations or financial
condition.
Patent Infringement Lawsuits
On March 16, 2011, MOSAID Technologies Incorporated filed a patent infringement lawsuit against us
in federal court in the Eastern District of Texas. The lawsuit included allegations against Digi
and 32 other companies pertaining to the infringement of six patents by products compliant with
various Institute of Electrical and Electronics Engineers standards for implementing wireless local
area network computer communications in certain frequency bands. The lawsuit seeks monetary and
non-monetary relief. We are engaged in settlement discussions, and it is reasonably possible that
we will reach a settlement agreement in the fourth quarter of fiscal 2011. While we cannot predict
the outcome of this matter, at this time we do not believe it will have a material impact on our
consolidated results of operations or financial condition.
On January 18, 2011, Advanced Processor Technologies LLC filed a patent infringement lawsuit
against us in federal court in the Eastern District of Texas. The lawsuit included
allegations against Digi and eight other companies pertaining to the infringement of two
patents by products containing data processors with memory management units. The lawsuit
seeks monetary and non-monetary relief. We cannot predict the outcome of this matter or
estimate a range of loss at this time or whether it will have a materially adverse impact on
our business prospects and our consolidated financial condition, results of operations or cash
flow.
On May 11, 2010, SIPCO, LLC filed a patent infringement lawsuit against us in federal court in the
Eastern District of Texas. This claim subsequently has been moved to the Northern District of
Georgia. The lawsuit included allegations against Digi and five other companies pertaining to the
infringement of SIPCO’s patents by wireless mesh networking and multi-port networking products.
The lawsuit seeks monetary and non-monetary relief. We cannot predict the outcome of these matters
or estimate a range of loss at this time or whether it will have a materially adverse impact on our
business prospects and our consolidated financial condition, results of operations or cash flow.
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The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. No definition available.
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Restructuring
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| Restructuring [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING |
12. RESTRUCTURING
On April 23, 2009, we announced a business restructuring to increase our focus on wireless products
and solutions that include hardware, software and services. During the first quarter of fiscal
2011, we reversed $50,000 for legal fees in conjunction with compensation-related items relating to
claims that are no longer probable of assertion. During the second quarter of fiscal 2011, we
reversed $10,000 related to continued medical benefits and $10,000 for legal fees in conjunction
with compensation-related items relating to claims that are no longer probable of assertion. The
following is a summary of the restructuring charges and other activity within the restructuring
accrual during the first nine months of fiscal 2011 (in thousands):
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The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Subsequent Event
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9 Months Ended |
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Jun. 30, 2011
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| Subsequent Event [Abstract] | |
| SUBSEQUENT EVENT |
13. SUBSEQUENT EVENT
On July 21, 2011, we announced our intention to restructure our operations in Breisach, Germany.
The restructuring will reduce our manufacturing footprint by consolidating prototype and production
functions and centralizing outsourced production control in our Minneapolis production facility.
The consolidation is driven by our strategy of driving efficiency improvements and enhancing
customer service globally through more centralized operations. As a result of the restructuring,
we expect to reduce the size of our workforce in Breisach by approximately 25 employees. In
connection with the restructuring, we expect to incur approximately $600,000 — $700,000 of
restructuring charges on a pre-tax basis. These charges will be incurred in connection with
reductions in the workforce. The significant majority of the expected restructuring charges
associated with this initiative represent cash paid for severance. The charges associated with the
restructuring are expected to be incurred in the fourth quarter of fiscal 2011 and the first
quarter of fiscal 2012. The payments are expected to be completed in the second quarter of fiscal
2012.
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- Definition
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. No definition available.
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