Digi International will take part in deploying over 500 sensor nodes at Google's developer conference, Google I/O, May 15-17. The Data Sensing Lab project demonstrates how real-time machine-to-machine (M2M) data can provide insight into customer behaviors and preferences. Utilizing Digi's XBee ZigBee modules and ConnectPort wireless gateways to connect the nodes, sensor data is then collected and managed via Device Cloud by Etherios, Digi's platform for managing large populations of devices and connecting devices to applications. The sensor network's 4,000 data streams running over Device Cloud utilizes over 500 XBee modules connecting Arduino based sensors to provide continuous updates on temperature, pressure, light, air quality, motion and noise levels in San Francisco's Moscone Center during the conference. The Google Cloud Platform team will gather, transform, and analyze the information, then share heat maps and other data visualizations in collaboration with the Google Maps team.

Digi International Inc. announced Lawrence A. Kraft, Senior Vice President of Marketing, provided with written notice of his intention to resign from his position at the company to pursue personal interests. Mr. Kraft informed that he presently intends to remain at the company until a successor is appointed and a reasonable transition period has taken place.

Digi International Inc. reported consolidated unaudited earnings results for the second quarter and six months ended March 31, 2013. For the quarter, the company reported net sales of $48,197,000 compared with $49,016,000 for the same period last year. Operating income was $419,000 compared with $3,429,000 for the same period last year. Interest income was $50,000 compared with $74,000 for the same period last year. Income before income taxes was $870,000 compared with $3,496,000 for the same period last year. Net income was $1,000,000 or $0.04 diluted per share compared with $2,122,000 or $0.08 diluted per share for the same period last year. Reported net income in the second fiscal quarter of 2013 was unfavorably impacted by a legal settlement with U.S. Ethernet Innovations, LLC of $1.0 million, net of taxes, or $0.04 per diluted share. On Non GAAP operating income was $1,907,000 compared with $3,489,000 for the same period last year. Net income was $1,591,000 or $0.06 diluted per share compared with $2,161,000 or $0.08 diluted per share for the same period last year. Earnings before interest, taxes, depreciation and amortization in the second fiscal quarter of 2013 were $2.8 million, or 5.9% of revenue, compared to $5.5 million, or 11.1% of revenue in the second fiscal quarter of 2012. For the six months, the company reported net sales of $95,188,000 compared with $95,678,000 for the same period last year. Operating income was $2,091,000 compared with $4,245,000 for the same period last year. Interest income was $102,000 compared with $146,000 for the same period last year. Income before income taxes was $2,718,000 compared with $4,531,000 for the same period last year. Net income was $2,230,000 or $0.08 diluted per share compared with $2,846,000 or $0.11 diluted per share for the same period last year. Net cash provided by operating activities was $3,350,000 compared with $6,108,000 for the same period last year. Purchase of property, equipment, improvements and certain other intangible assets was $2,080,000 compared with $2,650,000 for the same period last year. On Non GAAP operating income was $3,579,000 compared with $4,541,000 for the same period last year. Net income was $2,677,000 or $0.10 diluted per share compared with $2,827,000 or $0.11 diluted per share for the same period last year. Reported net income was unfavorably impacted for the first six months of fiscal 2013 as a result of the patent infringement settlement resulting from the enactment of legislation extending the research and development tax credit, allowing Digi to record tax credits earned during the last three quarters of fiscal 2012 in the second quarter of fiscal 2013 and the reversal of tax reserves for the expiration of the statute of limitations for various U.S. and foreign jurisdictions' tax matters. For the third fiscal quarter of 2013, the company projects revenue in a range of $48 million to $50 million. Digi projects net income per diluted share in a range of $0.05 to $0.07. For the fourth fiscal quarter of 2013, the company projects revenue in a range of $50 million to $54 million. Net income per diluted share is projected to be in a range of $0.06 to $0.11. For the year, the company's effective tax rate to be in a range of 25% to 30%, including discrete tax benefits. Amortization expense, included a cost of goods sold, was $300,000 in the second fiscal quarter of 2013 compared to $500,000 in the same quarter a year ago. The company expects the gross margins will be in a range of 51.5% to 52% for the remainder of fiscal 2013.