Digi International Inc. Introduces TransPort(R) WR11 Cellular Router
Feb 26 14
Digi International announced the release of the TransPort WR11, a cellular router that provides a secure and reliable connection for retail and point-of-sale applications. The TransPort WR11 connects ATMs, lottery terminals, payment kiosks, vending machines, and digital signs with cellular networks. The WR11, the newest member of the Digi TransPort family, helps retailers and payment network operators increase network uptime and reduce costs associated with disconnected stores and payment terminals. The WR11 offers a unique combination of enterprise routing protocol support, PCI-ready security features, and advanced network management through Device Cloud by Etherios(TM). Its small form factor and single Ethernet port makes it ideal for point-of-sale environments. With dual SIMs standard, the WR11 offers carrier agility and network redundancy. The WR11 is part of the Digi TransPort family of python-programmable 3G/4G cellular routers that provide flexible, enterprise level cellular routers for remote and mobile networking applications. Hundreds of thousands of Digi cellular routers are in service in over 40 countries around the world. Many are used in large-scale secure electronic payment networks for point-of-sale, lottery, self-service kiosks, and off-premise ATM machines. Digi routers are known for their reliability-many have been in service for nearly a decade. The new Transport WR11 cellular router is an opportunity for retailers and payment network operators to increase market penetration, provide faster revenue recognition, and improve customer convenience. The 3G version of the TransPort WR11 is now available for $349 MSRP. The product includes a five year warranty. A 4G LTE version will be available in the summer of 2014.
Digi International Announces ConnectCore Module Connectivity
Feb 24 14
Digi International announced ConnectCore(R) 6, the surface mount multi-chip module with built-in wireless connectivity. The ConnectCore 6 provides access to all of the features of the Freescale(R) i.MX 6 Quad, i.MX 6 Dual and i.MX 6 Solo processors, making it the ideal solution for M2M applications. The module's small form factor and design, which requires no connectors, reduces manufacturing costs and makes it easier than ever to add wireless capabilities to portable devices. The product was created to reduce design risk, complexity and time to market for those developing products for transportation, security and other industrial applications. The ConnectCore 6 module's built-in ability to connect via Wi-Fi, Bluetooth, Bluetooth Low Energy and Device Cloud by Etherios can save product designers hundreds of hours of time and expense in designing wireless devices-including the pain of passing and maintaining global certifications. Complete software development tools are provided to build application software to help get products to market faster. The module has a 5-year warranty and is designed for long-term availability, ensuring that it will be available for the lifecycle of developed products. Other offerings include ConnectCore(R) modules based on the i.MX53 and i.MX51 processor families, and the ConnectCard module based on the i.MX28 processor. Scalable and energy-efficient, the ConnectCore family is ideal for a variety of applications. ConnectCore 6 kits and prototyping modules will be available in March 2014. A fully integrated single-board computer will be available in Summer 2014.
Digi International Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2013; Provides Earnings Guidance for the Second Quarter of Fiscal 2014; Revises Earnings Guidance for the Full Year of Fiscal 2014
Jan 23 14
Digi International Inc. reported unaudited consolidated earnings results for the first quarter ended December 31, 2013. The company reported revenue of $47.3 million for the first fiscal quarter of 2014, compared with $47.0 million for the first fiscal quarter of 2013. Net income was $0.7 million, or $0.03 per diluted share, compared to $1.2 million, or $0.05 per diluted share, in the prior year comparable quarter. Revenue for the first fiscal quarter of 2013 included only two months of revenue from CRM services of Etherios division, which was acquired on October 31, 2012. Net income in the first fiscal quarter of 2014 included a tax benefit of $0.2 million, or $0.01 per diluted share, resulting from the reversal of tax reserves for the expiration of the statutes of limitation for various U.S. jurisdictions. Net income in the first fiscal quarter of 2013 included a tax benefit of $0.1 million, or $0.01 per diluted share, resulting from the reversal of tax reserves for the expiration of the statutes of limitation for various U.S. and foreign jurisdictions. Revenue and gross margin performance were less than anticipated in both products and services. Product revenue was lower than anticipated primarily due to delays in purchases from certain customers that were expected during the quarter. Service revenue, while posting solid year-over-year growth compared to the first fiscal quarter of 2013, was lower than anticipated primarily due to work interruptions in two customer projects. Earnings before interest, taxes, depreciation and amortization were $2.6 million compared to $3.7 million in the first fiscal quarter of 2013. Operating income was $628,000 compared to $1,672,000 in the first fiscal quarter of 2013. Income before income taxes was $764,000 compared to $1,848,000 in the first fiscal quarter of 2013. Net cash used in operating activities was $337,000 compared to net cash provided by operating activities of $2,288,000 in the first fiscal quarter of 2013. Purchase of property, equipment, improvements and certain other intangible assets were $975,000 compared to $1,427,000 in the first fiscal quarter of 2013.
For the second quarter of fiscal 2014, the company projects revenue in a range of $45 million to $48 million with a most likely revenue of approximately $46 million. The company projects net income per diluted share to be in a range of $0.00 to $0.03 for the second fiscal quarter of 2014.
The company previously have projected revenue for the full year of fiscal 2014 in a range of $200 million to $214 million. In light of the first fiscal quarter results and guidance for the second fiscal quarter, the company expects revenue for full year to be in a range of $195 million to $205 million with a most likely annual revenue of approximately $198 million. The lowered guidance is driven by a reduction in projected revenue from certain of the largest product customers. Additionally, while the company expects services revenue to deliver solid year-over-year growth, the company now expects this growth to be lower than previously projected. Gross margin rates will be lower than those incorporated into previous guidance. As a result of analyzing the gross profit impact from reduction in product revenue and changes in customer product mix, the company expects lower gross profit rates on products. Regarding services revenue, the company previously suggested services margin should be in the range of 40% to 50%. The company expects that it will hit the low end of that range in the second half of the year. Combining these factors, the company expects gross margins for the company for the year to be in a range of 50% to 50.5%. The company had previously projected earnings to be in a range of $0.30 to $0.44. As a result of the revenue and gross margin reductions, the company now expects net income per diluted share to be in the range of $0.19 to $0.31. The company estimates that effective tax rate for the full year will be in a range of 36% to 37%.