Digi stock dives after earnings falls short
MINNEAPOLIS—Digi International shares lost almost a third of their value in after-hours trading after the computer networking equipment maker said Thursday its fiscal second-quarter profit fell a 5 percent due to subpar revenue for some of its products.
The results missed Wall Street's expectations, and company also lowered its guidance for the full year.
Net income for the January-through-March period was $2.1 million, or 8 cents per share, down slightly from $2.2 million, or 9 cents per share, in the same period a year earlier.
Revenue was $49 million, down from $49.7 million in the second fiscal quarter of 2011.
Analysts polled by FactSet Research expected earnings of 10 cents per share on revenue of $52.7 million.
Revenue from wired products, which accounts for more than half of the company sales, was down by $3.3 million to $27.2 million in the quarter.
"We are disappointed with our most recent quarter financial results that were impacted by lower-than-expected revenue from our new business pipeline, particularly in the energy sector," CEO Joe Dunsmore said in a statement. "We also experienced lower-than-expected revenue from specific legacy products."
Digi said it now anticipates full-year income of 26 to 38 cents per share on revenue of $190 million to $200 million. Analysts forecast 47 cents on revenue of $216.4 million. In January Digi said it expected full-year earnings around 38 cents per share on revenue of $210 million.
Digi International shares sank $3.39, or 30 percent, to $7.80 in extended-hours trading.