posted a first-quarter profit Thursday and guided toward a solid second-quarter performance.
For its first quarter ended Dec. 31, the Minneapolis-based networking-equipment company earned $3 million, or 13 cents a share. That's up from the year-ago $1.6 million, or 8 cents a share, and a penny ahead of the Wall Street analyst consensus estimate reported by Thomson First Call. Revenue rose to $29.5 million from $26.3 million a year earlier, in line with estimates.
The company also offered in-line second-quarter guidance, saying it expects to make around 13 cents a share on revenue of $29 million to $30 million. The earnings figure is in line with estimates, though the revenue is a shade light of the $30.3 million Thomson First Call consensus.
For fiscal 2005, Digi expects to post a 10% revenue gain over a year ago. The company also said 2005 earnings may include a gain of 24 cents a share on a tax reserve reversal related to an IRS settlement. Excluding that gain, the company expects to post a 33% gain in 2005 earnings off the 2004 level of 40 cents a share. That's in line with the 54-cent Wall Street consensus.
Digi surged 92 cents in regular Thursday trading to $16.37 before slipping 30 cents in after-hours action.