We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Digi International Inc | NASDAQ:DGII | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-5.22 | -16.99% | 25.50 | 22.50 | 25.53 | 30.75 | 24.44 | 30.67 | 545,287 | 01:00:00 |
|
þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
41-1532464
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
9350 Excelsior Blvd., Suite 700
|
|
|
Hopkins, Minnesota
|
|
55343
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, par value $.01 per share
|
|
DGII
|
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
|
o
|
|
Accelerated filer
|
|
þ
|
Non-accelerated filer
|
|
o
|
|
Smaller reporting company
|
|
o
|
Emerging growth company
|
|
o
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
|
(in thousands, except per share data)
|
||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Product
|
$
|
52,097
|
|
|
$
|
47,588
|
|
|
$
|
102,909
|
|
|
$
|
86,042
|
|
Services and solutions
|
13,667
|
|
|
6,960
|
|
|
25,168
|
|
|
13,461
|
|
||||
Total revenue
|
65,764
|
|
|
54,548
|
|
|
128,077
|
|
|
99,503
|
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
||||||||
Cost of product
|
28,496
|
|
|
23,080
|
|
|
54,309
|
|
|
42,290
|
|
||||
Cost of services and solutions
|
6,214
|
|
|
3,864
|
|
|
12,191
|
|
|
7,043
|
|
||||
Amortization of intangibles
|
725
|
|
|
770
|
|
|
1,465
|
|
|
1,377
|
|
||||
Total cost of sales
|
35,435
|
|
|
27,714
|
|
|
67,965
|
|
|
50,710
|
|
||||
Gross profit
|
30,329
|
|
|
26,834
|
|
|
60,112
|
|
|
48,793
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
11,534
|
|
|
11,175
|
|
|
23,191
|
|
|
20,935
|
|
||||
Research and development
|
9,569
|
|
|
8,617
|
|
|
19,087
|
|
|
16,368
|
|
||||
General and administrative
|
8,441
|
|
|
6,224
|
|
|
11,558
|
|
|
12,671
|
|
||||
Restructuring reversal
|
—
|
|
|
—
|
|
|
(67
|
)
|
|
—
|
|
||||
Total operating expenses
|
29,544
|
|
|
26,016
|
|
|
53,769
|
|
|
49,974
|
|
||||
Operating income (loss)
|
785
|
|
|
818
|
|
|
6,343
|
|
|
(1,181
|
)
|
||||
Other income (expense), net:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
144
|
|
|
38
|
|
|
352
|
|
|
246
|
|
||||
Interest expense
|
(2
|
)
|
|
(4
|
)
|
|
(94
|
)
|
|
(7
|
)
|
||||
Other income (expense), net
|
257
|
|
|
(527
|
)
|
|
305
|
|
|
(572
|
)
|
||||
Total other income (expense), net
|
399
|
|
|
(493
|
)
|
|
563
|
|
|
(333
|
)
|
||||
Income (loss) before income taxes
|
1,184
|
|
|
325
|
|
|
6,906
|
|
|
(1,514
|
)
|
||||
Income tax (benefit) expense
|
(158
|
)
|
|
451
|
|
|
882
|
|
|
3,099
|
|
||||
Net income (loss)
|
$
|
1,342
|
|
|
$
|
(126
|
)
|
|
$
|
6,024
|
|
|
$
|
(4,613
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.22
|
|
|
$
|
(0.17
|
)
|
Diluted
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.21
|
|
|
$
|
(0.17
|
)
|
Weighted average common shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
27,866
|
|
|
27,084
|
|
|
27,687
|
|
|
26,914
|
|
||||
Diluted
|
28,438
|
|
|
27,084
|
|
|
28,289
|
|
|
26,914
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
|
(in thousands)
|
||||||||||||||
Net income (loss)
|
$
|
1,342
|
|
|
$
|
(126
|
)
|
|
$
|
6,024
|
|
|
$
|
(4,613
|
)
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(83
|
)
|
|
1,787
|
|
|
(1,652
|
)
|
|
2,058
|
|
||||
Change in net unrealized gain (loss) on investments
|
9
|
|
|
(19
|
)
|
|
14
|
|
|
(40
|
)
|
||||
Less income tax (expense) benefit
|
(2
|
)
|
|
5
|
|
|
(4
|
)
|
|
8
|
|
||||
Reclassification of realized loss on investments included in net income
(1)
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||
Less income tax benefit
(2)
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||
Other comprehensive (loss) income, net of tax
|
(76
|
)
|
|
1,796
|
|
|
(1,642
|
)
|
|
2,049
|
|
||||
Comprehensive income (loss)
|
$
|
1,266
|
|
|
$
|
1,670
|
|
|
$
|
4,382
|
|
|
$
|
(2,564
|
)
|
|
March 31, 2019
|
|
September 30, 2018
(as adjusted)* |
||||
|
(in thousands, except share data)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
69,593
|
|
|
$
|
58,014
|
|
Marketable securities
|
2,497
|
|
|
4,736
|
|
||
Accounts receivable, net
|
53,493
|
|
|
49,819
|
|
||
Inventories
|
44,035
|
|
|
41,644
|
|
||
Other current assets
|
5,549
|
|
|
2,613
|
|
||
Assets held for sale
|
—
|
|
|
5,220
|
|
||
Total current assets
|
175,167
|
|
|
162,046
|
|
||
Property, equipment and improvements, net
|
13,926
|
|
|
8,354
|
|
||
Intangible assets, net
|
34,807
|
|
|
39,320
|
|
||
Goodwill
|
154,049
|
|
|
154,535
|
|
||
Deferred tax assets
|
5,236
|
|
|
6,600
|
|
||
Other non-current assets
|
350
|
|
|
1,291
|
|
||
Total assets
|
$
|
383,535
|
|
|
$
|
372,146
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
14,628
|
|
|
$
|
12,911
|
|
Accrued compensation
|
6,991
|
|
|
8,190
|
|
||
Unearned revenue
|
6,576
|
|
|
3,177
|
|
||
Contingent consideration on acquired businesses
|
8,527
|
|
|
5,890
|
|
||
Other current liabilities
|
4,369
|
|
|
5,405
|
|
||
Total current liabilities
|
41,091
|
|
|
35,573
|
|
||
Income taxes payable
|
759
|
|
|
851
|
|
||
Deferred tax liabilities
|
317
|
|
|
334
|
|
||
Contingent consideration on acquired businesses
|
—
|
|
|
4,175
|
|
||
Other non-current liabilities
|
530
|
|
|
720
|
|
||
Total liabilities
|
42,697
|
|
|
41,653
|
|
||
Contingencies (see Note 13)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value; 60,000,000 shares authorized; 34,471,378 and 33,812,838 shares issued
|
345
|
|
|
338
|
|
||
Additional paid-in capital
|
262,392
|
|
|
255,936
|
|
||
Retained earnings
|
157,985
|
|
|
151,961
|
|
||
Accumulated other comprehensive loss
|
(25,168
|
)
|
|
(23,526
|
)
|
||
Treasury stock, at cost, 6,412,682 and 6,385,336 shares
|
(54,716
|
)
|
|
(54,216
|
)
|
||
Total stockholders’ equity
|
340,838
|
|
|
330,493
|
|
||
Total liabilities and stockholders’ equity
|
$
|
383,535
|
|
|
$
|
372,146
|
|
|
Six months ended March 31,
|
||||||
|
2019
|
|
2018
(as adjusted)* |
||||
|
(in thousands)
|
||||||
Operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
6,024
|
|
|
$
|
(4,613
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation of property, equipment and improvements
|
2,217
|
|
|
1,546
|
|
||
Amortization of intangible assets
|
4,609
|
|
|
4,287
|
|
||
Stock-based compensation
|
2,707
|
|
|
2,378
|
|
||
Deferred income tax provision
|
1,338
|
|
|
2,808
|
|
||
Gain on sale of property and equipment
|
(4,395
|
)
|
|
5
|
|
||
Change in fair value of contingent consideration
|
810
|
|
|
(425
|
)
|
||
Provision for bad debt and product returns
|
568
|
|
|
395
|
|
||
Provision for inventory obsolescence
|
900
|
|
|
900
|
|
||
Restructuring reversal
|
(67
|
)
|
|
—
|
|
||
Other
|
(116
|
)
|
|
25
|
|
||
Changes in operating assets and liabilities (net of acquisitions)
|
(8,393
|
)
|
|
(12,287
|
)
|
||
Net cash provided by (used in) operating activities
|
6,202
|
|
|
(4,981
|
)
|
||
Investing activities:
|
|
|
|
||||
Proceeds from maturities and sales of marketable securities
|
2,252
|
|
|
29,513
|
|
||
Proceeds from sale of business
|
—
|
|
|
2,000
|
|
||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
(56,588
|
)
|
||
Proceeds from sale of property and equipment
|
10,047
|
|
|
—
|
|
||
Purchase of property, equipment, improvements and certain other intangible assets
|
(7,346
|
)
|
|
(785
|
)
|
||
Net cash provided by (used in) investing activities
|
4,953
|
|
|
(25,860
|
)
|
||
Financing activities:
|
|
|
|
||||
Acquisition earn-out payments
|
(2,348
|
)
|
|
—
|
|
||
Proceeds from stock option plan transactions
|
3,751
|
|
|
3,427
|
|
||
Proceeds from employee stock purchase plan transactions
|
549
|
|
|
618
|
|
||
Purchases of common stock
|
(1,044
|
)
|
|
(681
|
)
|
||
Net cash provided by financing activities
|
908
|
|
|
3,364
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(484
|
)
|
|
1,646
|
|
||
Net increase (decrease) in cash and cash equivalents
|
11,579
|
|
|
(25,831
|
)
|
||
Cash and cash equivalents, beginning of period
|
58,014
|
|
|
78,222
|
|
||
Cash and cash equivalents, end of period
|
$
|
69,593
|
|
|
$
|
52,391
|
|
|
|
|
|
||||
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
||||
Transfer of inventory to property, equipment and improvements
|
$
|
(654
|
)
|
|
$
|
(827
|
)
|
Liability related to acquisition of business
|
$
|
—
|
|
|
$
|
(2,300
|
)
|
Accrual for purchase of property, equipment, improvements and certain other intangible assets
|
$
|
(20
|
)
|
|
$
|
(27
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
||||||||||||||
|
|
Common Stock
|
|
Treasury Stock
|
|
Paid-In
|
|
Retained
|
|
Comprehensive
|
|
Stockholders’
|
||||||||||||||||||
(in thousands)
|
|
Shares
|
|
Par Value
|
|
Shares
|
|
Value
|
|
Capital
|
|
Earnings*
|
|
Loss
|
|
Equity
|
||||||||||||||
Balances, September 30, 2017
|
|
33,008
|
|
|
$
|
330
|
|
|
6,437
|
|
|
$
|
(54,533
|
)
|
|
$
|
245,528
|
|
|
$
|
150,363
|
|
|
$
|
(22,659
|
)
|
|
$
|
319,029
|
|
Cumulative-effect adjustment from adoption of ASU 2016-09
|
|
|
|
|
|
|
|
|
|
52
|
|
|
(33
|
)
|
|
|
|
19
|
|
|||||||||||
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
(4,613
|
)
|
|
|
|
(4,613
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,049
|
|
|
2,049
|
|
||||||||||||
Employee stock purchase plan issuances
|
|
|
|
|
|
(74
|
)
|
|
631
|
|
|
(13
|
)
|
|
|
|
|
|
618
|
|
||||||||||
Repurchase of common stock
|
|
|
|
|
|
68
|
|
|
(681
|
)
|
|
|
|
|
|
|
|
(681
|
)
|
|||||||||||
Issuance of stock under stock award plans
|
|
573
|
|
|
6
|
|
|
|
|
|
|
3,421
|
|
|
|
|
|
|
3,427
|
|
||||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
2,378
|
|
|
|
|
|
|
2,378
|
|
||||||||||||
Balances, March 31, 2018
|
|
33,581
|
|
|
$
|
336
|
|
|
6,431
|
|
|
$
|
(54,583
|
)
|
|
$
|
251,366
|
|
|
$
|
145,717
|
|
|
$
|
(20,610
|
)
|
|
$
|
322,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balances, September 30, 2018
|
|
33,813
|
|
|
$
|
338
|
|
|
6,385
|
|
|
$
|
(54,216
|
)
|
|
$
|
255,936
|
|
|
$
|
151,961
|
|
|
$
|
(23,526
|
)
|
|
$
|
330,493
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
6,024
|
|
|
|
|
6,024
|
|
||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,642
|
)
|
|
(1,642
|
)
|
||||||||||||
Employee stock purchase plan issuances
|
|
|
|
|
|
(63
|
)
|
|
544
|
|
|
5
|
|
|
|
|
|
|
549
|
|
||||||||||
Repurchase of common stock
|
|
|
|
|
|
91
|
|
|
(1,044
|
)
|
|
|
|
|
|
|
|
(1,044
|
)
|
|||||||||||
Issuance of stock under stock award plans
|
|
658
|
|
|
7
|
|
|
|
|
|
|
3,744
|
|
|
|
|
|
|
3,751
|
|
||||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
2,707
|
|
|
|
|
|
|
2,707
|
|
||||||||||||
Balances, March 31, 2019
|
|
34,471
|
|
|
$
|
345
|
|
|
6,413
|
|
|
$
|
(54,716
|
)
|
|
$
|
262,392
|
|
|
$
|
157,985
|
|
|
$
|
(25,168
|
)
|
|
$
|
340,838
|
|
•
|
Identification of the contract, or contracts with a customer;
|
•
|
Identification of the performance obligations in the contract;
|
•
|
Determination of the transaction price;
|
•
|
Allocation of the transaction price to the performance obligations in the contract; and
|
•
|
Recognition of revenue when or as we satisfy the performance obligations.
|
•
|
We have not disclosed the remaining transaction price for reporting periods prior to the first quarter of fiscal 2019.
|
•
|
For completed contracts that have variable consideration, we will use the as-invoiced amount for all of our time and materials contracts and contracts relating to Digi Remote Manager
®
in instances where the contracts do not include free service.
|
•
|
We will expense incremental costs of obtaining a contract when incurred if the amortization period of the asset is one year or less.
|
|
|
Three months ended March 31, 2018
|
||||||||||
(in thousands, except per common share data)
|
|
As Reported
|
|
Impact of Adoption
|
|
As Adjusted
|
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Product
|
|
$
|
47,588
|
|
|
$
|
—
|
|
|
$
|
47,588
|
|
Services and solutions
|
|
7,203
|
|
|
(243
|
)
|
|
6,960
|
|
|||
Total revenue
|
|
54,791
|
|
|
(243
|
)
|
|
54,548
|
|
|||
Cost of sales:
|
|
|
|
|
|
|
||||||
Cost of product
|
|
23,080
|
|
|
—
|
|
|
23,080
|
|
|||
Cost of services and solutions
|
|
4,287
|
|
|
(423
|
)
|
|
3,864
|
|
|||
Amortization of intangibles
|
|
770
|
|
|
—
|
|
|
770
|
|
|||
Total cost of sales
|
|
28,137
|
|
|
(423
|
)
|
|
27,714
|
|
|||
Gross profit
|
|
26,654
|
|
|
180
|
|
|
26,834
|
|
|||
Operating expenses
|
|
26,151
|
|
|
(135
|
)
|
|
26,016
|
|
|||
Operating income
|
|
$
|
503
|
|
|
$
|
315
|
|
|
$
|
818
|
|
Net (loss) income
|
|
$
|
(357
|
)
|
|
$
|
231
|
|
|
$
|
(126
|
)
|
Diluted (loss) income per share
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
|
Six months ended March 31, 2018
|
||||||||||
(in thousands, except per common share data)
|
|
As Reported
|
|
Impact of Adoption
|
|
As Adjusted
|
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Product
|
|
$
|
86,042
|
|
|
$
|
—
|
|
|
$
|
86,042
|
|
Services and solutions
|
|
13,946
|
|
|
(485
|
)
|
|
13,461
|
|
|||
Total revenue
|
|
99,988
|
|
|
(485
|
)
|
|
99,503
|
|
|||
Cost of sales:
|
|
|
|
|
|
|
||||||
Cost of product
|
|
42,290
|
|
|
—
|
|
|
42,290
|
|
|||
Cost of services and solutions
|
|
7,730
|
|
|
(687
|
)
|
|
7,043
|
|
|||
Amortization of intangibles
|
|
1,377
|
|
|
—
|
|
|
1,377
|
|
|||
Total cost of sales
|
|
51,397
|
|
|
(687
|
)
|
|
50,710
|
|
|||
Gross profit
|
|
48,591
|
|
|
202
|
|
|
48,793
|
|
|||
Operating expenses
|
|
50,211
|
|
|
(237
|
)
|
|
49,974
|
|
|||
Operating (loss) income
|
|
$
|
(1,620
|
)
|
|
$
|
439
|
|
|
$
|
(1,181
|
)
|
Net (loss) income
|
|
$
|
(4,926
|
)
|
|
$
|
313
|
|
|
$
|
(4,613
|
)
|
Diluted (loss) income per share
|
|
$
|
(0.18
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.17
|
)
|
|
|
September 30, 2018
|
||||||||||
(in thousands)
|
|
As Reported
|
|
Impact of Adoption
|
|
As Adjusted
|
||||||
Accounts receivable, net
|
|
$
|
50,817
|
|
|
$
|
(998
|
)
|
|
$
|
49,819
|
|
Property, equipment and improvements, net
|
|
$
|
6,270
|
|
|
$
|
2,084
|
|
|
$
|
8,354
|
|
Deferred tax assets
|
|
$
|
6,665
|
|
|
$
|
(65
|
)
|
|
$
|
6,600
|
|
Unearned revenue current
|
|
$
|
2,579
|
|
|
$
|
598
|
|
|
$
|
3,177
|
|
Other non-current liabilities
|
|
$
|
510
|
|
|
$
|
210
|
|
|
$
|
720
|
|
Retained earnings
|
|
$
|
151,748
|
|
|
$
|
213
|
|
|
$
|
151,961
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
1,342
|
|
|
$
|
(126
|
)
|
|
$
|
6,024
|
|
|
$
|
(4,613
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Denominator for basic net income (loss) per common share — weighted average shares outstanding
|
27,866
|
|
|
27,084
|
|
|
27,687
|
|
|
26,914
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units
|
572
|
|
|
—
|
|
|
602
|
|
|
—
|
|
||||
Denominator for diluted net income (loss) per common share — adjusted weighted average shares
|
28,438
|
|
|
27,084
|
|
|
28,289
|
|
|
26,914
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share, basic
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.22
|
|
|
$
|
(0.17
|
)
|
Net income (loss) per common share, diluted
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.21
|
|
|
$
|
(0.17
|
)
|
|
March 31,
2019 |
|
September 30, 2018
(as adjusted)* |
||||
Accounts receivable, net:
|
|
|
|
||||
Accounts receivable
|
$
|
57,502
|
|
|
$
|
53,164
|
|
Less allowance for doubtful accounts
|
1,271
|
|
|
785
|
|
||
Less reserve for future returns and pricing adjustments
|
2,738
|
|
|
2,560
|
|
||
Accounts receivable, net
|
$
|
53,493
|
|
|
$
|
49,819
|
|
Inventories:
|
|
|
|
||||
Raw materials
|
$
|
17,008
|
|
|
$
|
22,047
|
|
Work in process
|
1,119
|
|
|
525
|
|
||
Finished goods
|
25,908
|
|
|
19,072
|
|
||
Inventories
|
$
|
44,035
|
|
|
$
|
41,644
|
|
|
Amortized
Cost (1)
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value (1)
|
||||||||
Current marketable securities:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
2,497
|
|
Total marketable securities
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
2,497
|
|
(1)
|
Included in amortized cost and fair value is purchased and accrued interest of
$3
.
|
|
Amortized
Cost (1)
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value (1)
|
||||||||
Current marketable securities:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
4,756
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
4,736
|
|
Total marketable securities
|
$
|
4,756
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
4,736
|
|
(1)
|
Included in amortized cost and fair value is purchased and accrued interest of
$6
.
|
|
March 31, 2019
|
||||||||||||||
|
Less than 12 Months
|
|
More than 12 Months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,497
|
|
|
$
|
(6
|
)
|
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,497
|
|
|
$
|
(6
|
)
|
|
September 30, 2018
|
||||||||||||||
|
Less than 12 Months
|
|
More than 12 Months
|
||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,736
|
|
|
$
|
(20
|
)
|
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,736
|
|
|
$
|
(20
|
)
|
|
Total Fair
Value at
|
|
Fair Value Measurements Using
Inputs Considered as
|
||||||||||||
|
March 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market
|
$
|
27,883
|
|
|
$
|
27,883
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit
|
2,497
|
|
|
—
|
|
|
2,497
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
30,380
|
|
|
$
|
27,883
|
|
|
$
|
2,497
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration on acquired businesses
|
$
|
8,527
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,527
|
|
Total liabilities measured at fair value
|
$
|
8,527
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,527
|
|
|
Total Fair
Value at
|
|
Fair Value Measurements Using
Inputs Considered as
|
||||||||||||
|
September 30, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market
|
$
|
24,318
|
|
|
$
|
24,318
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit
|
4,736
|
|
|
—
|
|
|
4,736
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
29,054
|
|
|
$
|
24,318
|
|
|
$
|
4,736
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration on acquired businesses
|
$
|
10,065
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,065
|
|
Total liabilities measured at fair value
|
$
|
10,065
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,065
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Fair value at beginning of period
|
$
|
10,147
|
|
|
$
|
5,981
|
|
|
$
|
10,065
|
|
|
$
|
6,388
|
|
Purchase price contingent consideration
|
—
|
|
|
2,300
|
|
|
—
|
|
|
2,300
|
|
||||
Contingent consideration payments
|
(2,187
|
)
|
|
—
|
|
|
(2,348
|
)
|
|
—
|
|
||||
Change in fair value of contingent consideration
|
567
|
|
|
(18
|
)
|
|
810
|
|
|
(425
|
)
|
||||
Fair value at end of period
|
$
|
8,527
|
|
|
$
|
8,263
|
|
|
$
|
8,527
|
|
|
$
|
8,263
|
|
|
March 31, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
|
Gross
carrying
amount
|
|
Accum.
amort.
|
|
Net
|
|
Gross
carrying
amount
|
|
Accum.
amort.
|
|
Net
|
||||||||||||
Purchased and core technology
|
$
|
58,011
|
|
|
$
|
(49,938
|
)
|
|
$
|
8,073
|
|
|
$
|
58,102
|
|
|
$
|
(48,693
|
)
|
|
$
|
9,409
|
|
License agreements
|
102
|
|
|
(60
|
)
|
|
42
|
|
|
102
|
|
|
(46
|
)
|
|
56
|
|
||||||
Patents and trademarks
|
15,835
|
|
|
(12,777
|
)
|
|
3,058
|
|
|
15,701
|
|
|
(12,242
|
)
|
|
3,459
|
|
||||||
Customer relationships
|
46,530
|
|
|
(23,226
|
)
|
|
23,304
|
|
|
46,605
|
|
|
(21,049
|
)
|
|
25,556
|
|
||||||
Non-compete agreements
|
600
|
|
|
(270
|
)
|
|
330
|
|
|
600
|
|
|
(210
|
)
|
|
390
|
|
||||||
Order backlog
|
1,800
|
|
|
(1,800
|
)
|
|
—
|
|
|
1,800
|
|
|
(1,350
|
)
|
|
450
|
|
||||||
Total
|
$
|
122,878
|
|
|
$
|
(88,071
|
)
|
|
$
|
34,807
|
|
|
$
|
122,910
|
|
|
$
|
(83,590
|
)
|
|
$
|
39,320
|
|
|
Six Months Ended March 31, 2019
|
||||||||||
|
IoT
Products and Services
|
|
IoT
Solutions
|
|
Total
|
||||||
Beginning balance, October 1
|
$
|
104,358
|
|
|
$
|
50,177
|
|
|
$
|
154,535
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign currency translation adjustment
|
(122
|
)
|
|
(364
|
)
|
|
(486
|
)
|
|||
Ending balance, March 31
|
$
|
104,236
|
|
|
$
|
49,813
|
|
|
$
|
154,049
|
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
Revenue
|
|
|
|
|
|
|
|
|
||||||||
IoT Products & Services
|
|
$
|
56,039
|
|
|
$
|
49,825
|
|
|
$
|
109,333
|
|
|
$
|
90,705
|
|
IoT Solutions
|
|
9,725
|
|
|
4,723
|
|
|
18,744
|
|
|
8,798
|
|
||||
Total revenue
|
|
$
|
65,764
|
|
|
$
|
54,548
|
|
|
$
|
128,077
|
|
|
$
|
99,503
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
IoT Products & Services
|
|
$
|
3,450
|
|
|
$
|
4,689
|
|
|
$
|
10,852
|
|
|
$
|
5,953
|
|
IoT Solutions
|
|
(2,665
|
)
|
|
(3,871
|
)
|
|
(4,509
|
)
|
|
(7,134
|
)
|
||||
Total operating income (loss)
|
|
$
|
785
|
|
|
$
|
818
|
|
|
$
|
6,343
|
|
|
$
|
(1,181
|
)
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
||||||||
IoT Products & Services
|
|
$
|
1,378
|
|
|
$
|
1,729
|
|
|
$
|
3,320
|
|
|
$
|
2,578
|
|
IoT Solutions
|
|
1,775
|
|
|
1,651
|
|
|
3,506
|
|
|
3,255
|
|
||||
Total depreciation and amortization
|
|
$
|
3,153
|
|
|
$
|
3,380
|
|
|
$
|
6,826
|
|
|
$
|
5,833
|
|
|
|
Six months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Expended for property, equipment and improvements
|
|
|
|
|
||||
IoT Products & Services
|
|
$
|
7,289
|
|
|
$
|
785
|
|
IoT Solutions*
|
|
57
|
|
|
—
|
|
||
Total expended for property, plant and equipment
|
|
$
|
7,346
|
|
|
$
|
785
|
|
|
|
March 31, 2019
|
|
|
September 30, 2018
(as adjusted)* |
|||
Assets
|
|
|
|
|
||||
IoT Products & Services
|
|
$
|
216,601
|
|
|
$
|
209,574
|
|
IoT Solutions
|
|
94,844
|
|
|
99,822
|
|
||
Unallocated**
|
|
72,090
|
|
|
62,750
|
|
||
Total assets
|
|
$
|
383,535
|
|
|
$
|
372,146
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
North America, primarily the United States
|
$
|
48,869
|
|
|
$
|
39,169
|
|
|
$
|
95,204
|
|
|
$
|
68,506
|
|
Europe, Middle East & Africa
|
10,764
|
|
|
9,504
|
|
|
20,868
|
|
|
19,660
|
|
||||
Other
|
6,131
|
|
|
5,875
|
|
|
12,005
|
|
|
11,337
|
|
||||
Total revenue
|
$
|
65,764
|
|
|
$
|
54,548
|
|
|
$
|
128,077
|
|
|
$
|
99,503
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||
IoT Products & Services Segment
|
|
|
|
|
|
|
|
||||||||
Hardware product
|
$
|
52,097
|
|
|
$
|
47,588
|
|
|
$
|
102,909
|
|
|
$
|
86,042
|
|
Services
|
3,942
|
|
|
2,237
|
|
|
6,424
|
|
|
4,663
|
|
||||
Total IoT Products & Services Segment
|
56,039
|
|
|
49,825
|
|
|
109,333
|
|
|
90,705
|
|
||||
IoT Solutions Segment
|
|
|
|
|
|
|
|
||||||||
Solutions
|
9,725
|
|
|
4,723
|
|
|
18,744
|
|
|
8,798
|
|
||||
Total Revenue
|
$
|
65,764
|
|
|
$
|
54,548
|
|
|
$
|
128,077
|
|
|
$
|
99,503
|
|
|
|
Six months ended
March 31, |
||
($ in thousands)
|
|
2019
|
||
Unearned revenue, beginning of period*
|
|
$
|
3,933
|
|
Billings
|
|
13,613
|
|
|
Revenue recognized
|
|
(10,497
|
)
|
|
Unearned revenue, end of period
|
|
$
|
7,049
|
|
Unrecognized tax benefits as of September 30, 2018
|
$
|
1,561
|
|
Decreases related to:
|
|
||
Prior year income tax positions
|
(31
|
)
|
|
Expiration of statute of limitations
|
(56
|
)
|
|
Unrecognized tax benefits as of March 31, 2019
|
$
|
1,474
|
|
|
Balance at
|
|
Warranties
|
|
Settlements
|
|
Balance at
|
||||||||
Period
|
January 1
|
|
issued
|
|
made
|
|
March 31
|
||||||||
Three months ended March 31, 2019
|
$
|
1,140
|
|
|
$
|
144
|
|
|
$
|
(175
|
)
|
|
$
|
1,109
|
|
Three months ended March 31, 2018
|
$
|
1,164
|
|
|
$
|
362
|
|
|
$
|
(178
|
)
|
|
$
|
1,348
|
|
|
|
|
|
|
|
|
|
||||||||
|
Balance at
|
|
Warranties
|
|
Settlements
|
|
Balance at
|
||||||||
Period
|
October 1
|
|
issued
|
|
made
|
|
March 31
|
||||||||
Six months ended March 31, 2019
|
$
|
1,172
|
|
|
$
|
216
|
|
|
$
|
(279
|
)
|
|
$
|
1,109
|
|
Six months ended March 31, 2018
|
$
|
987
|
|
|
$
|
716
|
|
|
$
|
(355
|
)
|
|
$
|
1,348
|
|
Fiscal year
|
|
Amount
|
||
2019 (six months)
|
|
$
|
995
|
|
2020
|
|
2,541
|
|
|
2021
|
|
2,495
|
|
|
2022
|
|
2,224
|
|
|
2023
|
|
2,054
|
|
|
2024
|
|
2,101
|
|
|
Thereafter
|
|
11,056
|
|
|
Total minimum payments required
|
|
$
|
23,466
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of sales
|
$
|
25
|
|
|
$
|
46
|
|
|
$
|
80
|
|
|
$
|
96
|
|
Sales and marketing
|
466
|
|
|
391
|
|
|
819
|
|
|
725
|
|
||||
Research and development
|
269
|
|
|
167
|
|
|
469
|
|
|
175
|
|
||||
General and administrative
|
533
|
|
|
721
|
|
|
1,339
|
|
|
1,382
|
|
||||
Stock-based compensation before income taxes
|
1,293
|
|
|
1,325
|
|
|
2,707
|
|
|
2,378
|
|
||||
Income tax benefit
|
(263
|
)
|
|
(277
|
)
|
|
(557
|
)
|
|
(498
|
)
|
||||
Stock-based compensation after income taxes
|
$
|
1,030
|
|
|
$
|
1,048
|
|
|
$
|
2,150
|
|
|
$
|
1,880
|
|
|
|
Options Outstanding
|
|
Weighted Average Exercised Price
|
|
Weighted Average Contractual Term (in years)
|
|
Aggregate Intrinsic Value (1)
|
|||
Balance at September 30, 2018
|
|
3,526
|
|
|
$10.49
|
|
|
|
|
||
Granted
|
|
590
|
|
|
10.92
|
|
|
|
|
||
Exercised
|
|
(410
|
)
|
|
9.14
|
|
|
|
|
||
Forfeited / Canceled
|
|
(301
|
)
|
|
12.64
|
|
|
|
|
||
Balance at March 31, 2019
|
|
3,405
|
|
|
$10.67
|
|
4.3
|
|
$
|
7,154
|
|
|
|
|
|
|
|
|
|
|
|||
Exercisable at March 31, 2019
|
|
2,192
|
|
|
$10.29
|
|
3.3
|
|
$
|
5,434
|
|
|
Six months ended March 31,
|
||
|
2019
|
|
2018
|
Weighted average per option grant date fair value
|
$4.36
|
|
$3.72
|
Assumptions used for option grants:
|
|
|
|
Risk free interest rate
|
2.56% - 2.93%
|
|
2.12% - 2.58%
|
Expected term
|
6.00 years
|
|
6.00 years
|
Expected volatility
|
33% - 34%
|
|
33% - 34%
|
Weighted average volatility
|
33%
|
|
33%
|
Expected dividend yield
|
0
|
|
0
|
|
Number of Awards
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at September 30, 2018
|
674
|
|
|
$
|
11.05
|
|
Granted
|
534
|
|
|
$
|
11.60
|
|
Vested
|
(248
|
)
|
|
$
|
10.42
|
|
Canceled
|
(115
|
)
|
|
$
|
12.31
|
|
Nonvested at March 31, 2019
|
845
|
|
|
$
|
11.41
|
|
|
Manufacturing Transition
|
|
2017
Restructuring
|
|
|
||||||||||
|
Employee
Termination Costs |
|
Employee
Termination Costs |
|
Other
|
|
Total
|
||||||||
Balance at September 30, 2018
|
$
|
147
|
|
|
$
|
293
|
|
|
$
|
13
|
|
|
$
|
453
|
|
Payments
|
(108
|
)
|
|
(233
|
)
|
|
(18
|
)
|
|
(359
|
)
|
||||
Reversals
|
(19
|
)
|
|
(53
|
)
|
|
5
|
|
|
(67
|
)
|
||||
Foreign currency fluctuation
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||
Balance at March 31, 2019
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
•
|
IoT Products & Services segment; and
|
•
|
IoT Solutions segment.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||||||||
|
2019
|
|
2018
(as adjusted)* |
|
2019
|
|
2018
(as adjusted)* |
||||||||||||||||||||
($ in thousands)
|
|
|
% of total
revenue |
|
|
|
% of total
revenue |
|
|
|
% of total
revenue |
|
|
|
% of total
revenue |
||||||||||||
Total revenue
|
$
|
65,764
|
|
|
100.0
|
%
|
|
$
|
54,548
|
|
|
100.0
|
%
|
|
$
|
128,077
|
|
|
100.0
|
%
|
|
$
|
99,503
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
1,342
|
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
6,024
|
|
|
|
|
$
|
(4,613
|
)
|
|
|
||||
Interest income, net
|
(142
|
)
|
|
|
|
(34
|
)
|
|
|
|
(258
|
)
|
|
|
|
(239
|
)
|
|
|
||||||||
Income tax (benefit) expense
|
(158
|
)
|
|
|
|
451
|
|
|
|
|
882
|
|
|
|
|
3,099
|
|
|
|
||||||||
Depreciation and amortization
|
3,153
|
|
|
|
|
3,380
|
|
|
|
|
6,826
|
|
|
|
|
5,833
|
|
|
|
||||||||
Stock-based compensation
|
1,293
|
|
|
|
|
1,325
|
|
|
|
|
2,707
|
|
|
|
|
2,378
|
|
|
|
||||||||
Gain on sale of building
|
—
|
|
|
|
|
—
|
|
|
|
|
(4,396
|
)
|
|
|
|
—
|
|
|
|
||||||||
Restructuring reversal
|
—
|
|
|
|
|
—
|
|
|
|
|
(67
|
)
|
|
|
|
—
|
|
|
|
||||||||
Acquisition-related expense
|
1,060
|
|
|
|
|
249
|
|
|
|
|
991
|
|
|
|
|
1,750
|
|
|
|
||||||||
Adjusted EBITDA
|
$
|
6,548
|
|
|
10.0
|
%
|
|
$
|
5,245
|
|
|
9.6
|
%
|
|
$
|
12,709
|
|
|
9.9
|
%
|
|
$
|
8,208
|
|
|
8.2
|
%
|
|
Three months ended March 31,
|
% incr.
|
|
Six months ended March 31,
|
% incr.
|
||||||||||||||||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
||||||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Product
|
$
|
52,097
|
|
|
79.2
|
%
|
|
$
|
47,588
|
|
|
87.2
|
%
|
9.5
|
|
|
$
|
102,909
|
|
|
80.3
|
%
|
|
$
|
86,042
|
|
|
86.5
|
%
|
19.6
|
|
Services and solutions
|
13,667
|
|
|
20.8
|
|
|
6,960
|
|
|
12.8
|
|
96.4
|
|
|
25,168
|
|
|
19.7
|
|
|
13,461
|
|
|
13.5
|
|
87.0
|
|
||||
Total revenue
|
65,764
|
|
|
100.0
|
|
|
54,548
|
|
|
100.0
|
|
20.6
|
|
|
128,077
|
|
|
100.0
|
|
|
99,503
|
|
|
100.0
|
|
28.7
|
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cost of product
|
28,496
|
|
|
43.3
|
|
|
23,080
|
|
|
42.3
|
|
23.5
|
|
|
54,309
|
|
|
42.4
|
|
|
42,290
|
|
|
42.5
|
|
28.4
|
|
||||
Cost of services and solutions
|
6,214
|
|
|
9.5
|
|
|
3,864
|
|
|
7.1
|
|
60.8
|
|
|
12,191
|
|
|
9.5
|
|
|
7,043
|
|
|
7.1
|
|
73.1
|
|
||||
Amortization of intangibles
|
725
|
|
|
1.1
|
|
|
770
|
|
|
1.4
|
|
(5.8
|
)
|
|
1,465
|
|
|
1.2
|
|
|
1,377
|
|
|
1.4
|
|
6.4
|
|
||||
Total cost of sales
|
35,435
|
|
|
53.9
|
|
|
27,714
|
|
|
50.8
|
|
27.9
|
|
|
67,965
|
|
|
53.1
|
|
|
50,710
|
|
|
51.0
|
|
34.0
|
|
||||
Gross profit
|
30,329
|
|
|
46.1
|
|
|
26,834
|
|
|
49.2
|
|
13.0
|
|
|
60,112
|
|
|
46.9
|
|
|
48,793
|
|
|
49.0
|
|
23.2
|
|
||||
Operating expenses
|
29,544
|
|
|
44.9
|
|
|
26,016
|
|
|
47.7
|
|
13.6
|
|
|
53,769
|
|
|
42.0
|
|
|
49,974
|
|
|
50.2
|
|
7.6
|
|
||||
Operating income (loss)
|
785
|
|
|
1.2
|
|
|
818
|
|
|
1.5
|
|
(4.0
|
)
|
|
6,343
|
|
|
5.0
|
|
|
(1,181
|
)
|
|
(1.2
|
)
|
637.1
|
|
||||
Other income (expense), net
|
399
|
|
|
0.6
|
|
|
(493
|
)
|
|
(0.9
|
)
|
(180.9
|
)
|
|
563
|
|
|
0.4
|
|
|
(333
|
)
|
|
(0.3
|
)
|
(269.1
|
)
|
||||
Income (loss) before income taxes
|
1,184
|
|
|
1.8
|
|
|
325
|
|
|
0.6
|
|
264.3
|
|
|
6,906
|
|
|
5.4
|
|
|
(1,514
|
)
|
|
(1.5
|
)
|
556.1
|
|
||||
Income tax (benefit) expense
|
(158
|
)
|
|
(0.2
|
)
|
|
451
|
|
|
0.8
|
|
(135.0
|
)
|
|
882
|
|
|
0.7
|
|
|
3,099
|
|
|
3.1
|
|
(71.5
|
)
|
||||
Net income (loss)
|
$
|
1,342
|
|
|
2.0
|
%
|
|
$
|
(126
|
)
|
|
(0.2
|
)%
|
(1,165.1
|
)
|
|
$
|
6,024
|
|
|
4.7
|
%
|
|
$
|
(4,613
|
)
|
|
(4.6
|
)%
|
230.6
|
|
|
Three months ended March 31,
|
|
$ incr.
|
% incr.
|
|
Six months ended March 31,
|
|
$ incr.
|
% incr.
|
||||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
|
(decr.)
|
(decr.)
|
|
2019
|
|
2018
(as adjusted)* |
|
(decr.)
|
(decr.)
|
||||||||||
North America, primarily United States
|
$
|
48,869
|
|
|
$
|
39,169
|
|
|
9,700
|
|
24.8
|
|
$
|
95,204
|
|
|
$
|
68,506
|
|
|
26,698
|
|
39.0
|
Europe, Middle East & Africa
|
10,764
|
|
|
9,504
|
|
|
1,260
|
|
13.3
|
|
20,868
|
|
|
19,660
|
|
|
1,208
|
|
6.1
|
||||
Other
|
6,131
|
|
|
5,875
|
|
|
256
|
|
4.4
|
|
12,005
|
|
|
11,337
|
|
|
668
|
|
5.9
|
||||
Total revenue
|
$
|
65,764
|
|
|
$
|
54,548
|
|
|
11,216
|
|
20.6
|
|
$
|
128,077
|
|
|
$
|
99,503
|
|
|
28,574
|
|
28.7
|
|
Three months ended March 31,
|
|
$ incr.
|
|
Six months ended March 31,
|
|
$ incr.
|
||||||||||||||||||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
|
(decr.)
|
|
2019
|
|
2018
(as adjusted)* |
|
(decr.)
|
||||||||||||||||||||||||
Sales and marketing
|
$
|
11,534
|
|
|
17.5
|
%
|
|
$
|
11,175
|
|
|
20.5
|
%
|
|
$
|
359
|
|
|
$
|
23,191
|
|
|
18.1
|
%
|
|
$
|
20,935
|
|
|
21.0
|
%
|
|
$
|
2,256
|
|
Research and development
|
9,569
|
|
|
14.6
|
%
|
|
8,617
|
|
|
15.8
|
%
|
|
952
|
|
|
19,087
|
|
|
14.9
|
%
|
|
16,368
|
|
|
16.5
|
%
|
|
2,719
|
|
||||||
General and administrative
|
8,441
|
|
|
12.8
|
%
|
|
6,224
|
|
|
11.4
|
%
|
|
2,217
|
|
|
11,558
|
|
|
9.0
|
%
|
|
12,671
|
|
|
12.7
|
%
|
|
(1,113
|
)
|
||||||
Restructuring reversal
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
(67
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
(67
|
)
|
||||||
Total operating expenses
|
$
|
29,544
|
|
|
44.9
|
%
|
|
$
|
26,016
|
|
|
47.7
|
%
|
|
$
|
3,528
|
|
|
$
|
53,769
|
|
|
42.0
|
%
|
|
$
|
49,974
|
|
|
50.2
|
%
|
|
$
|
3,795
|
|
|
Three months ended March 31,
|
% incr.
|
|
Six months ended March 31,
|
% incr.
|
|||||||||||||||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
|||||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Product
|
$
|
52,097
|
|
|
93.0
|
%
|
|
$
|
47,588
|
|
|
95.5
|
%
|
9.5
|
|
|
$
|
102,909
|
|
|
94.1
|
%
|
|
$
|
86,042
|
|
|
94.9
|
%
|
19.6
|
Services
|
3,942
|
|
|
7.0
|
|
|
2,237
|
|
|
4.5
|
|
76.2
|
|
|
6,424
|
|
|
5.9
|
|
|
4,663
|
|
|
5.1
|
|
37.8
|
||||
Total revenue
|
56,039
|
|
|
100.0
|
|
|
49,825
|
|
|
100.0
|
|
12.5
|
|
|
109,333
|
|
|
100.0
|
|
|
90,705
|
|
|
100.0
|
|
20.5
|
||||
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of product
|
28,496
|
|
|
50.9
|
|
|
23,080
|
|
|
46.3
|
|
23.5
|
|
|
54,309
|
|
|
49.7
|
|
|
42,290
|
|
|
46.6
|
|
28.4
|
||||
Cost of services
|
1,754
|
|
|
3.1
|
|
|
1,410
|
|
|
2.8
|
|
24.4
|
|
|
3,643
|
|
|
3.3
|
|
|
2,749
|
|
|
3.0
|
|
32.5
|
||||
Amortization of intangibles
|
226
|
|
|
0.4
|
|
|
246
|
|
|
0.5
|
|
(8.1
|
)
|
|
452
|
|
|
0.4
|
|
|
330
|
|
|
0.4
|
|
37.0
|
||||
Total cost of sales
|
30,476
|
|
|
54.4
|
|
|
24,736
|
|
|
49.6
|
|
23.2
|
|
|
58,404
|
|
|
53.4
|
|
|
45,369
|
|
|
50.0
|
|
28.7
|
||||
Gross profit
|
25,563
|
|
|
45.6
|
|
|
25,089
|
|
|
50.4
|
|
1.9
|
|
|
50,929
|
|
|
46.6
|
|
|
45,336
|
|
|
50.0
|
|
12.3
|
||||
Total operating expenses
|
22,113
|
|
|
39.4
|
|
|
20,400
|
|
|
41.0
|
|
8.4
|
|
|
40,077
|
|
|
36.7
|
|
|
39,383
|
|
|
43.4
|
|
1.8
|
||||
Operating income
|
$
|
3,450
|
|
|
6.2
|
%
|
|
$
|
4,689
|
|
|
9.4
|
%
|
(26.4
|
)
|
|
$
|
10,852
|
|
|
9.9
|
%
|
|
$
|
5,953
|
|
|
6.6
|
%
|
82.3
|
|
Three months ended March 31,
|
% incr.
|
|
Six months ended March 31,
|
% incr.
|
||||||||||||||||||||||||||
($ in thousands)
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
|
2019
|
|
2018
(as adjusted)* |
(decr.)
|
||||||||||||||||||||||
Solutions revenue
|
$
|
9,725
|
|
|
100.0
|
%
|
|
$
|
4,723
|
|
|
100.0
|
%
|
105.9
|
|
|
$
|
18,744
|
|
|
100.0
|
%
|
|
$
|
8,798
|
|
|
100.0
|
%
|
113.0
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cost of services
|
4,460
|
|
|
45.9
|
|
|
2,454
|
|
|
52.0
|
|
81.7
|
|
|
8,548
|
|
|
45.6
|
|
|
4,294
|
|
|
48.8
|
|
99.1
|
|
||||
Amortization of intangibles
|
499
|
|
|
5.1
|
|
|
524
|
|
|
11.1
|
|
(4.8
|
)
|
|
1,013
|
|
|
5.4
|
|
|
1,047
|
|
|
11.9
|
|
(3.2
|
)
|
||||
Total cost of sales
|
4,959
|
|
|
51.0
|
|
|
2,978
|
|
|
63.1
|
|
66.5
|
|
|
9,561
|
|
|
51.0
|
|
|
5,341
|
|
|
60.7
|
|
79.0
|
|
||||
Gross profit
|
4,766
|
|
|
49.0
|
|
|
1,745
|
|
|
36.9
|
|
(173.1
|
)
|
|
9,183
|
|
|
49.0
|
|
|
3,457
|
|
|
39.3
|
|
165.6
|
|
||||
Total operating expenses
|
7,431
|
|
|
76.4
|
|
|
5,616
|
|
|
118.9
|
|
32.3
|
|
|
13,692
|
|
|
73.1
|
|
|
10,591
|
|
|
120.4
|
|
29.3
|
|
||||
Operating loss
|
$
|
(2,665
|
)
|
|
(27.4
|
)%
|
|
$
|
(3,871
|
)
|
|
(82.0
|
)%
|
(31.2
|
)
|
|
$
|
(4,509
|
)
|
|
(24.1
|
)%
|
|
$
|
(7,134
|
)
|
|
(81.1
|
)%
|
(36.8
|
)
|
|
Six months ended March 31,
|
|
% increase
|
|||||
|
2019
|
|
2018
|
|
(decrease)
|
|||
Euro
|
1.1419
|
|
|
1.2029
|
|
|
(5.1
|
)%
|
British Pound
|
1.2942
|
|
|
1.3591
|
|
|
(4.8
|
)%
|
Japanese Yen
|
0.0090
|
|
|
0.0090
|
|
|
—
|
%
|
Canadian Dollar
|
0.7547
|
|
|
0.7893
|
|
|
(4.4
|
)%
|
Period
|
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of a Publicly Announced Program
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
|
||||
January 1, 2019 - January 31, 2019
|
|
7,052
|
|
|
$
|
11.37
|
|
|
—
|
|
|
$20,000,000.00
|
February 1, 2019 - February 28, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$20,000,000.00
|
March 1, 2019 - March 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$20,000,000.00
|
Total
|
|
7,052
|
|
|
$
|
11.37
|
|
|
—
|
|
|
$20,000,000.00
|
(1)
|
All shares reported were forfeited by employees in connection with the satisfaction of tax withholding obligations related to the vesting of restricted stock units.
|
ITEM 6.
|
|
EXHIBITS
|
|
|
|
|
|
Exhibit No.
|
Description
|
Method of Filing
|
||
3
|
|
(a)
|
Restated Certificate of Incorporation of the Company, as amended (1)
|
Incorporated by Reference
|
|
|
|
|
|
3
|
|
(b)
|
Incorporated by Reference
|
|
|
|
|
|
|
10
|
|
(a)
|
Incorporated by Reference
|
|
|
|
|
|
|
10
|
|
(a)(i)
|
Filed Electronically
|
|
|
|
|
|
|
10
|
|
(a)(ii)
|
Filed Electronically
|
|
|
|
|
|
|
10
|
|
(a)(iii)
|
Filed Electronically
|
|
|
|
|
|
|
10
|
|
(a)(iv)
|
Filed Electronically
|
|
|
|
|
|
|
31
|
|
(a)
|
Filed Electronically
|
|
|
|
|
|
|
31
|
|
(b)
|
Filed Electronically
|
|
|
|
|
|
|
32
|
|
|
Filed Electronically
|
|
|
|
|
|
|
101.INS
|
|
|
XBRL Instance Document
|
Filed Electronically
|
|
|
|
|
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
Filed Electronically
|
|
|
|
|
|
101.CAL
|
|
|
XBRL Taxonomy Calculation Linkbase Document
|
Filed Electronically
|
|
|
|
|
|
101.DEF
|
|
|
XBRL Taxonomy Definition Linkbase Document
|
Filed Electronically
|
|
|
|
|
|
101.LAB
|
|
|
XBRL Taxonomy Label Linkbase Document
|
Filed Electronically
|
|
|
|
|
|
101.PRE
|
|
|
XBRL Taxonomy Presentation Linkbase Document
|
Filed Electronically
|
(1)
|
Incorporated by reference to Exhibit 3(a) to the Company’s Annual Report on Form 10-K for the year ended September 30, 1993 (File No. 0-17972)
|
(2)
|
Incorporated by reference to Exhibit 3(b) to the Company’s Current Report on Form 8-K filed on August 28, 2017 (File No. 1-34033)
|
(3)
|
Incorporated by reference to Appendix A to the Company’s definitive proxy statement on Schedule 14A filed December 14, 2018 (File No. 1-34033)
|
|
|
|
|
|
|
|
|
DIGI INTERNATIONAL INC.
|
|
||
Date:
|
May 7, 2019
|
By:
|
/s/ Brian G. Ballenger
|
|
|
|
|
|
Brian G. Ballenger
|
|
|
|
|
|
Vice President of Finance and Accounting, Acting Principal Financial Officer, Acting Principal Accounting Officer and Interim Treasurer
|
|
1 Year Digi Chart |
1 Month Digi Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions