Digi International Reports Third Fiscal Quarter 2012 Results

Digi International® Inc. (NASDAQ: DGII, www.digi.com) reported revenue of $47.6 million for the third fiscal quarter of 2012, compared with $54.3 million for the third fiscal quarter of 2011, a decrease of $6.7 million, or 12.2%. Net income was $2.3 million, or $0.09 per diluted share, in the third fiscal quarter of 2012 compared to $3.6 million, or $0.14 per diluted share, in the year ago comparable quarter.

“Our financial results were disappointing in comparison to the record third quarter a year ago,” said Joe Dunsmore, Digi’s Chief Executive Officer. “As our business continues to shift from sales of legacy wireline products to broader based wireless solutions, we may continue to experience near term challenges in achieving significant growth. We continue to generate strong positive cash flow. With cash balances presently in excess of $100 million, our Board has approved a new share repurchase program of up to $20 million. This represents a significant return of cash to our stockholders while still leaving us with the flexibility to pursue strategic acquisitions or other growth opportunities that may arise.”

Business Results for the Three Months Ended June 30, 2012

Revenue from wireless products in the third fiscal quarter of 2012 was $20.7 million, or 43.5% of net sales, compared to $22.6 million, or 41.6% of net sales, in the third fiscal quarter of 2011, a decrease of $1.9 million, or 8.1%. Revenue from wired products was $26.9 million, or 56.5% of net sales, in the third fiscal quarter of 2012 compared to $31.7 million, or 58.4% of net sales, in the third fiscal quarter of 2011, a decrease of $4.8 million, or 15.2%.

Revenue in North America was $27.7 million in the third fiscal quarter of 2012, compared to $32.3 million in the third fiscal quarter of 2011, a decrease of $4.6 million, or 14.2%. Revenue in EMEA (Europe, Middle East and Africa) was $12.0 million in the third fiscal quarter of 2012, compared to $13.0 million in the comparable quarter a year ago, a decrease of $1.0 million, or 8.1%. Revenue in the Asian countries was $6.4 million in the third fiscal quarter of 2012 compared to $6.9 million in the third fiscal quarter of 2011, a decrease of $0.5 million, or 6.8%. Latin American revenue was $1.5 million in the third fiscal quarter of 2012 compared to $2.1 million in the comparable quarter a year ago, a decrease of $0.6 million, or 26.0%.

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