Digi International Inc. (NASDAQ:DGII) Q2 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 05:00 pm ET


Digi International Inc. (NASDAQ:DGII) Q2 2018 Earnings Conference Call - Preliminary Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Digi International Second Fiscal Quarter 2018 Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to introduce your host for today's conference Mr. Mike Goergen, Chief Financial Officer.

Mike Goergen

Thank you, Sonya. Good afternoon, and thank for joining us today. Joining me on today's call is Ron Konezny, our President and CEO. Ron will provide his thoughts on our business, and I will follow with the highlights of our financial performance for our second fiscal quarter of 2018. Following our prepared remarks, we will take your questions until 6:00 p.m. Eastern. We issued our earnings release shortly after the market closed. If you do not have a copy of our earnings release, you may obtain a copy through the Financial Releases section of our Investor Relations website at www.digi.com.

Some of the statements that we make during this call are considered forward-looking and are subject to significant risk and uncertainties. These statements reflect our expectations about future operating and financial performance, and we speak only as of today's date. We undertake no obligation to update publicly or revise these forward-looking statements for any reason. We believe the expectations reflected in our forward-looking statements are reasonable, but give no assurance of such expectations or any of our forward-looking statements will prove to be correct. Please refer to the forward-looking statement section in our earnings release today, and under the headings Risk Factors in our 2017 Annual Report on Form 10-K, and subsequent reports on file with the SEC for additional information.

Finally, certain other financial information disclosed on this call includes non-GAAP measures. The information required to be disclosed about these measures, including reconciliations to the most comparable GAAP measures, are included in the earnings release. The earnings release is also an exhibit to a Form 8-K that can be accessed through the SEC filings section of our Investor Relations website.

Now, I'd like to turn the call over to Ron.

Ron Konezny

Thank you, Mike, and welcome to everyone that has joined our call today. Digi had an exciting second fiscal quarter, and I'm pleased to share my comments on our results and prospects. Our second fiscal quarter of 2018 extended the positive trend established the quarter prior. And exceeding our expectations for both revenue and adjusted EBITDA for the second fiscal quarter, we have begun to demonstrate our commitment to sequential improvement throughout the year. Particularly encouraging, we had strong performance in Digi's IoT Products and Services, IoT Solutions and our newly acquired Accelerated Concepts, whose results are included in the Digi IoT Products and Services business segment.

Lastly, we expect our performance to improve in our third fiscal quarter.

As a reminder, we transitioned our reporting to two business segments, IoT Products and Services and IoT Solutions. This better aligns with our value proposition, management structure and industry nomenclature. In moving away from our previous product categories like Cellular and RF, we interface with our customers