Digi International Inc. (NASDAQ:DGII) Q4 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 05:00 pm ET

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Digi International Inc. (NASDAQ:DGII) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q4 2019 Digi International Inc. Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jamie Loch, Chief Financial Officer. Thank you. Please go ahead sir.

Executive
Jamie Loch

Thank you, Gigi. Good afternoon everyone and thank you. We are happy to have you joining us today to discuss the fiscal 2019 fourth 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 and I will follow with the highlights of our financial performance. Following our prepared remarks, we will 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 will 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 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 2019 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 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 sections of our Investor Relations website.

Now, I'll turn the call over to Ron.

Executive
Ron Konezny

Thank you, Jamie and welcome to everyone that has joined our call today. We capped off another record-breaking fiscal year with a strong fourth quarter and enter fiscal 2020 with excitement in both of our business segments and also with the pending acquisition of Opengear. Our past fiscal year was driven by key initiatives that the team delivered. New product introduction, we doubled our revenue from products introduced within the past three years to nearly $40 million and we forecast that number will increase to $70 million in fiscal 2020. These key metrics shows the alignment and effectiveness of our product management, sales and R&D teams within IoT Products & Services. Strong direct sales force and solution selling. We are sustaining high win rates on large opportunities, while continuing to work closely with our critical channel partners. Our $20 million purchase order this past summer highlighted this effort. While we are still unable to disclose the specific end user, we can talk about the project in more detail as we think we can replicate