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Digi International Inc. (DGII+0.07%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing reports that Digi International Inc. generated total revenue of $424 million, a decrease of 5% compared to the previous fiscal year. The revenue decline was primarily due to a 6.1% decrease in the IoT Products & Services segment.
Gross profit margin increased to 58.9%, up 220 basis points from the prior year. This improvement was driven by increased recurring revenue at higher margin rates and reduced inflationary pressures.
Net income for the fiscal year was $22.5 million, compared to $24.8 million in the previous year. Diluted earnings per share were $0.61, down from $0.67 in the prior year.
Adjusted EBITDA for the fiscal year was $98.1 million, representing a 2% increase from the previous year. Annualized Recurring Revenue (ARR) grew by 9% to over $116 million.
Digi International Inc. reported a reduction in operating expenses to $201.8 million, a decrease of $0.3 million from the previous year. This was attributed to a decrease in non-labor expenses and gains from asset sales.
The company completed a major refinancing, entering into a new credit agreement with a $250 million senior secured revolving credit facility. This replaced the previous term loan and revolving credit facilities.
Digi International Inc. settled a lawsuit with Data Logger Solutions, LLC for $5.7 million. The settlement was reached following a jury verdict and subsequent court rulings.
The company continues to focus on expanding its IoT Solutions segment, which includes SmartSense by Digi and Ventus offerings, with an emphasis on subscription-based revenue models.
Goodwill impairment tests conducted as of June 30, 2024, indicated no impairment across all reporting units, with the Ventus unit's fair value exceeding carrying value by less than 10%.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Digi International Inc. annual 10-K report dated November 22, 2024. To report an error, please email earnings@qz.com.