Digi Warns on First Quarter

Digi International (DGII Quote) tumbled 10% Tuesday after it slashed first-quarter guidance, citing delays in customer orders.

The Minneapolis-based networking component company said it now expects to make 7 to 12 cents a share on revenue of $31.5 million to $34 million. The company said last month it expected earnings of 12 to 17 cents a share on revenue of $34 million to $37 million.

"Digi believes that the lower than anticipated revenues, and the related earnings per diluted share impact, are largely due to certain customer orders being moved into subsequent quarters, across product line industry softness in North America channel sales, and new product sales not ramping up as quickly as expected," Digi said. "Revenue from Rabbit product lines have not been impacted and remain consistent with the Company's previously indicated expectations."

Digi fell $1.14 to $10.81 late Tuesday.