Digi Net Matches Forecasts

Digi International's(DGII) second-quarter earnings fell 70% from a gain-enhanced year-ago period, while revenue rose 17% and the company guided full-year results in line.

Digi earned $2.6 million, or 11 cents a share, in the latest quarter, including 2 cents of options expense. Adjusted earnings of 13 cents a share were in line with estimates. A year ago, Digi earned $8.8 million, or 37 cents a share, including a $5.7 million gain related to a tax settlement.

Second-quarter revenue was $34.4 million, up from $29.3 million. Analysts were expecting $34.4 million in the most recent quarter.

"It was a challenging quarter and I am satisfied with our results," said Joe Dunsmore, Digi's chief executive. "Importantly, we also made very good progress on our strategic growth initiatives during the quarter."

The company expects earnings of 10 cents to 16 cents a share in the third quarter, excluding options expense, on revenue of $32.5 million to $37.5 million. Analysts were forecasting 14 cents a share on $36.2 million.

For the year, Digi sees earnings of 48 cents to 60 cents a share, excluding options, on sales of $136 million to $148 million. Analysts were looking for earnings of 54 cents a share on sales of $142.9 million.

Digi closed Monday at $11. In after-hours trading, it rose 19 cents, or 1.7%, to $11.19.

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