Digi International Inc. (NASDAQ:DGII) Q3 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


Digi International Inc. (NASDAQ:DGII) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. And welcome to the Q3 2019 Digi International Inc. Earnings Conference Call. At this time all participants are in a listen-only mode.

[Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Jamie Loch, CFO. Sir, you may begin.

James J. Loch

Thank you, Sydney. Good afternoon and thank you for joining us today to discuss the fiscal 2019 third quarter results of Digi International. Joining me on today's call is Ron Konezny, our President and CEO. Ron will provide his thoughts on our business. I will follow with the highlights of our financial performance. Following our prepared remarks, we'll take your questions.

We issued our earnings release shortly after the market closed. You may obtain a copy through the Financial Releases section of our Investor Relations website at digi.com. Some of the statements that we make during this call are considered forward-looking and are subject to significant risks and uncertainties. These statements reflect our expectations about future operating and financial performance and speak only as of today's date. We undertake no obligation to update publicly or revise these forward-looking statements. While we believe the expectations reflected in our forward-looking statements are reasonable, we give no assurance such expectations will be met or that any of our forward-looking statements will prove to be correct. For additional information, please refer to the forward-looking statements section in our earnings release today and the risk factors of our 2018 Form 10-K and subsequent reports on file with the SEC.

Finally, certain of the financial information disclosed on this call includes non-GAAP measures. Information requires 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'll turn the call over to Ron.

Ronald E. Konezny

Thank you, Jamie, and welcome to everyone who's joined our call today. We are pleased with our overall results with revenue and earnings meeting our expectations. We delivered record quarterly revenues in our IoT Solutions business and secured a purchase order in our IoT Products & Services business, which we expect will deliver over $20 million in revenue.

In addition, we expect to meet the revenue and earnings expectations we had set for the 2019 fiscal year based on anticipated sequential improvement in our fourth fiscal quarter. We hosted our second annual Global IoT event in early June here at Minneapolis with over 400 attendees, including our customers, distribution partners and key stakeholders. This event led to stronger customer and partner relationships and allowed our best asset, our team, to shine.

Now on to updates on our business segments and company initiatives. As anticipated, our IoT Products & Services' third quarter results were softer than our previous fiscal quarter. However, the large purchase order mentioned earlier demonstrates the key objectives that will drive our future