Digi International Inc. (NASDAQ:DGII) Q4 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 05:00 pm ET
A large U.S. city is deploying a full suite of Digi products and services to connect thousands of signalized intersections to its traffic management center. When finished this smart city project will be one of the largest mission-critical cellular networks in the world. This smart city project is a natural consequence of the global trend towards urbanization where city managers must increase surface transportation capacity to support residents and businesses. So you package the solution with partners to control reference design and is actively engaged with other cities. The Digi product suite includes Remote Manager, WR54 FirstNet routers, 900 megahertz radios and port servers. Digi services include custom application development, configuration, solution kitting and technical support. Improve system and process efficiency. We launched the final stage of our CRM ERP transition in early October. The entire company is now on one system with one database and increased visibility, a tremendous accomplishment and a huge thank you to the team. We are digging into process efficiency with the goal of making Digi an easier company for customers and partners to do business with.
Effective leadership. We named presidents of each business unit in November of last year, a new supply chain leader in early 2019 and a new CFO this past May. We have a great team that is aligned in our mission and supporting each other with unwavering commitment. As we look forward to fiscal 2020, we look to deliver another record year, turbocharged with the Opengear acquisition. As disclosed on November 7, Digi announced we have agreed to acquire this leader on remote access, network resiliency and automation services. The Opengear team will continue to be led by Gary Marks, their CEO and reports in to Mike Ueland, the President of Digi's IoT Products & Services business. We share similar cultural values. Some of our teams have worked together in the past easing the planned transition. It will be imperative that we support all the attributes that has made Opengear a leader in their market, while acclimating their teams to Digi. Jamie will provide the expected financial contribution to our results in his comments anticipating a close by year-end.
Now a few comments on each of our business segments. Our IoT Products & Services customers and partners are looking for more complete solutions, oftentimes incorporating professional services and sometimes including other products that are integrated with Digi's offerings. We will expand our professional services team to support these initiatives building from our large smart city project. New product introduction in our cellular and infrastructure management product lines, we will be introducing new and refreshed offers that are based on a single device operating system linked to our Digi Remote Manager application. In our embedded and RF product line, we will be launching the ConnectCore 8, ConnectCore 8 Nano SOMs and we will be building on our leading XBee product family to offer choice and ease of use. Service offerings. We will increasingly offer our products in combination