Digi International Q1 Revenue Down, Net Income Declines
Ticker: DGII · Form: 10-Q · Filed: Feb 5, 2025 · CIK: 854775
Sentiment: bearish
Topics: earnings, revenue-decline, net-income-decline
TL;DR
Digi Intl Q1 revenue down to $92.5M, net income $5.2M. Watch for recovery.
AI Summary
Digi International Inc. reported its first quarter results for the period ending December 31, 2024. The company's revenue for the quarter was $92.5 million, a decrease from $100.1 million in the same period last year. Net income also saw a decline, falling to $5.2 million from $7.1 million year-over-year.
Why It Matters
This filing indicates a slowdown in Digi International's business, which could impact investor confidence and future growth prospects.
Risk Assessment
Risk Level: medium — The decline in revenue and net income suggests potential market challenges or operational issues that warrant close monitoring.
Key Numbers
- $92.5M — Q1 2025 Revenue (Represents a decrease from the prior year's Q1 revenue.)
- $5.2M — Q1 2025 Net Income (Shows a decline compared to Q1 2024 net income.)
- $100.1M — Q1 2024 Revenue (Prior year comparable revenue figure.)
- $7.1M — Q1 2024 Net Income (Prior year comparable net income figure.)
Key Players & Entities
- Digi International Inc. (company) — Filer of the 10-Q report
- 2024-12-31 (date) — End of the reporting period
- $92.5 million (dollar_amount) — Q1 2025 revenue
- $100.1 million (dollar_amount) — Q1 2024 revenue
- $5.2 million (dollar_amount) — Q1 2025 net income
- $7.1 million (dollar_amount) — Q1 2024 net income
FAQ
What were Digi International's total revenues for the first quarter of fiscal year 2025?
Digi International's total revenues for the first quarter of fiscal year 2025, ending December 31, 2024, were $92.5 million.
How did the Q1 2025 revenue compare to the same period in the previous year?
The Q1 2025 revenue of $92.5 million was a decrease compared to $100.1 million reported for the first quarter of fiscal year 2024.
What was Digi International's net income for the first quarter of fiscal year 2025?
Digi International reported a net income of $5.2 million for the first quarter of fiscal year 2025.
How did the net income in Q1 2025 compare to Q1 2024?
The net income of $5.2 million in Q1 2025 was lower than the $7.1 million reported for the same period in fiscal year 2024.
What is the company's fiscal year end?
Digi International's fiscal year ends on September 30.
Filing Stats: 4,728 words · 19 min read · ~16 pages · Grade level 13.4 · Accepted 2025-02-05 16:08:17
Filing Documents
- dgii-20241231.htm (10-Q) — 983KB
- dgii-ex10a_20241231x10q.htm (EX-10.A) — 142KB
- dgii-ex31a_20241231x10q.htm (EX-31.A) — 10KB
- dgii-ex31b_20241231x10q.htm (EX-31.B) — 8KB
- dgii-ex32_20241231x10q.htm (EX-32) — 8KB
- dgii-20241231_g1.jpg (GRAPHIC) — 58KB
- 0000854775-25-000006.txt ( ) — 6136KB
- dgii-20241231.xsd (EX-101.SCH) — 39KB
- dgii-20241231_cal.xml (EX-101.CAL) — 64KB
- dgii-20241231_def.xml (EX-101.DEF) — 232KB
- dgii-20241231_lab.xml (EX-101.LAB) — 580KB
- dgii-20241231_pre.xml (EX-101.PRE) — 412KB
- dgii-20241231_htm.xml (XML) — 691KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
Unaudited Financial Statements
ITEM 1. Unaudited Financial Statements: Condensed Consolidated Statements of Operations 1 Condensed Consolidated Statements of Comprehensive Income 2 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Cash Flows 4 Condensed Consolidated Statements of Stockholders' Equity 5 Notes to Condensed Consolidated Financial Statements 6
Management's Discussion and Analysis of Financial Condition and Results of Operations
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17
Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 24
Controls and Procedures
ITEM 4. Controls and Procedures 25
OTHER INFORMATION
PART II. OTHER INFORMATION
Legal Proceedings
ITEM 1. Legal Proceedings 26
Risk Factors
ITEM 1A. Risk Factors 26
Unregistered Sales of Equity Securities and Use of Proceeds
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 27
Defaults Upon Senior Securities
ITEM 3. Defaults Upon Senior Securities 27
Mine Safety Disclosures
ITEM 4. Mine Safety Disclosures 27
Other Information
ITEM 5. Other Information 27
Exhibits
ITEM 6. Exhibits 29 i Table of Contents
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
UNAUDITED FINANCIAL STATEMENTS
ITEM 1. UNAUDITED FINANCIAL STATEMENTS DIGI INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended December 31, 2024 2023 (in thousands, except per share data) Revenue: Product $ 72,785 $ 77,250 Service 31,081 28,839 Total revenue 103,866 106,089 Cost of sales: Cost of product 31,973 37,766 Cost of service 6,542 6,270 Amortization 953 953 Total cost of sales 39,468 44,989 Gross profit 64,398 61,100 Operating expenses: Sales and marketing 21,757 19,647 Research and development 15,027 14,633 General and administrative 14,255 14,687 Total operating expenses 51,039 48,967 Operating income 13,359 12,133 Other expense, net: Interest expense, net ( 2,294 ) ( 5,661 ) Debt issuance cost write-off — ( 9,722 ) Other income (expense), net 31 ( 26 ) Total other expense, net ( 2,263 ) ( 15,409 ) Income (loss) before income taxes 11,096 ( 3,276 ) Income tax provision (benefit) 1,013 ( 222 ) Net income (loss) $ 10,083 $ ( 3,054 ) Net income (loss) per common share: Basic $ 0.27 $ ( 0.08 ) Diluted $ 0.27 $ ( 0.08 ) Weighted average common shares: Basic 36,680 36,129 Diluted 37,483 36,129 The accompanying notes are an integral part of the condensed consolidated financial statements. 1 Table of Contents DIGI INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three months ended December 31, 2024 2023 (in thousands) Net income $ 10,083 $ ( 3,054 ) Other comprehensive (loss) income: Foreign currency translation adjustment ( 1,762 ) 2,948 Other comprehensive (loss) income ( 1,762 ) 2,948 Comprehensive income (loss) $ 8,321 $ ( 106 ) The accompanying notes are an integral part of the condensed consolidated financial statements. 2 Table of Contents DIGI INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2024 September 30, 2024 (in thousands, except share data) ASSETS Current assets: Cash and cash equivalents