DGII - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q4 2019 Digi International Inc. Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions] [Operator

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

Jamie Loch

and Gigi. you. afternoon you, everyone Thank Good thank

have you fourth XXXX of We are results happy joining today the quarter to International. us Digi fiscal discuss to

Joining performance. our the and and I follow call with CEO. on Ron Konezny, today's me thoughts business Ron will of our financial our highlights on is President provide his will

your take questions. issued our prepared will Following the we release earnings closed. after We shortly remarks, our market

section may our copy You a through obtain Relations the digi.com. Financial at Releases of website Investor

our the statements and financial about and of subject or this and obligation future speak make during performance are forward-looking today's publicly of update only no call revise reflect are to undertake significant Some these uncertainties. date. statements. expectations we forward to and We looking that operating considered risks as will statements These

believe no forward-looking While that forward-looking we in to reasonable, statements met will such be any will assurance we or of prove our be are statements expectations correct. the expectations reflected give

subsequent the For our today earnings Form on factors and risk forward-looking please of to SEC. with reports and section release in the XX-K file refer additional statements information, our XXXX the

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

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

Ron Konezny

excitement year capped record-breaking to our in has with welcome both joined business fourth and with acquisition our entered call also that Opengear. the fiscal today. strong off We segments of Thank a and XXXX pending quarter you, of fiscal Jamie and another with everyone

year delivered. the driven key that by team Our past initiatives was fiscal

products million Products to from and shows years sales, within IoT million teams introduced These forecast increase metrics XXXX. our effectiveness nearly $XX fiscal introduction, we product revenue Services. and our $XX to three in the within R&D alignment of and will & New management, product doubled we the key past number that

Strong direct and solution selling. force sales

are rates while our closely critical on win sustaining We to high work opportunities, partners. continuing large channel with

summer Our $XX this million effort. purchase order this past highlighted

can specific While talk we the about we detail still project success. more disclose end in we are can to replicate unable the as we user, its think

and city full the of smart of is products residents largest a This will of cellular support urbanization of management is surface large connect where center. the traffic A city world. a thousands When transportation its signalized intersections trend suite increase finished, to deploying be Digi U.S. services this one capacity project to and in city project to networks smart global towards consequence must the natural managers mission-critical businesses. city

application the partners megahertz and servers. custom development, FirstNet to kitting, with support. Digi design configuration, actively product includes WRXX The package you radios, engaged with routers, So solution services Digi cities. technical is other Manager, XXX and port suite and Remote solution control include reference

thank We increased now is database Improve of on one transition accomplishment stage huge one The with launched system to and efficiency. in you entire a the early process CRM the and October. company our a and tremendous system ERP final visibility, team.

for business goal do partners the of with customers easier to with. Digi efficiency process into digging company and making an are We

and in early business of supply XXXX chain of named a Effective a unit year, this leadership. We last past presidents May. CFO new leader in November new each

with have commitment. unwavering supporting our great that and We in a team mission is other aligned each

another XXXX, with look to fiscal As record we turbocharged deliver look acquisition. year, the we to forward Opengear

Opengear access, of Digi in & November on network the and will business. team leader President to remote Mike acquire continue CEO IoT to to Services Marks, by their services. on reports have The Gary agreed X, this Digi's led Ueland, Products be automation we announced disclosed resiliency, As and

We share similar cultural values.

planned in provide will by It attributes support market, Opengear in close Jamie imperative the anticipating we acclimating Some of contribution all past be expected worked teams year-end. made in our have our his that the their teams Digi. has that easing a transition. together their to financial the leader comments while results the a will to

Now our of business comments segments. on a each few

oftentimes solutions, and are integrated & including services IoT other sometimes partners products Digi's Products for more are Services with offerings. Our looking customers incorporating and complete that professional

project. building We will city large expand from our professional smart to support initiatives our these services team

New embedded we'll ConnectCore In product on the offer product ConnectCore Nano and X, be be management SOMs refreshed our offers on line, we product to family X we operating a linked our Digi be system Remote RF that based and are our XBee and infrastructure application. to our device cellular introduction product will lines, Manager ease and of and in launching use. building introducing new leading single will choice

offerings. Service

opportunity increasingly will services. with will are will products offer partners our hardware-enabled software and and sales. professional management, combination also services wireless channel combination our have we but Increasingly to defined. We customers and to provide repeatable device data This our help in more

from We to efficiency. Increased drive cash. must improvements forecast

of integrating to productivity We expect improving customers benefit and integrate planning team. with and NetSuite the to this business effort will will demand time it be data, the leveraging our with to Digi. required we This do lower as point-of-sales software

Including will we will can we to & As in project-based margins. Products Opengear rates, growth performance, business ramp guidance, Services forward softer gross you to uneven IoT as and we higher pending to but EBITDA higher hear our generate the higher we as expect a expect look margins, bit experience acquisition, XXXX, start fiscal year. the throughout

enterprise continues of customers. increasingly number its on customers annualized This efficiency, focus subscription-oriented enhance bundled logistics business and IoT their food care, revenues increase Solutions including on safety, an was SmartSense business and their improve Our services, health to focused their recurring to offers increasing decision-making.

rates. revenue this We but growth bundling line rates top temper expect accelerate will will growth recurring

the million revenue. recurring sites. the approximately will added ending with XXXXX that in year XXXX anticipate annualized quarter our We We subscriber in continued sites nearly additions on build over $XX

launched the X, platform our and would join singular customers was that last more platform. SmartSense new of destination quarter

work customers migrate new will introduce We and with to platform when them the closely our existing appropriate.

product New introduction.

of environment will our goals. introduced first in our interoperability This sensors allow the meet provides products Bluetooth the requirements. XXXX achieve half IoT customer better customers of New and our an ZigBee optimized their to help to

our support automation in and training will of a make control to service. self investing guide process onboarding more customers users installation are allow We e-commerce site Improved our mobile and and efficient. process new and easier through the and to applications customers will

remains Solutions EBITDA mode modest we growth contribution and the expect XXXX. to contribute IoT in fiscal business a Our in business but growing

to our but a reduced XXXX Lastly we to significant net cash balance improved in fiscal position $XX will just sheet. generate million put million $XX an in debt under us transaction by our Opengear even stronger we providing in and inventory The cash XXXX. balance expect fiscal

continue in opportunities would enhance opportunity to to if We businesses like acquisition our the business both for look presents. solutions ideally and

I will for now Jamie financial turn the our call over performance. on more to detail

Jamie Loch

Ron. afternoon, Thanks, Good everyone.

our our highlights key fiscal of the year. some that of results the to with fourth and fiscal contributed financial quarter start I'll

million of both Our and fourth fiscal XX% EBITDA our revenue adjusted exceeded guidance $X.X million performance quarterly $XX.X or revenue of performance of ranges. quarter

As delivering of fiscal dependable quality continues our results. our demonstrated trend during year, performance to annual

our guidance we XXXX fiscal for year fiscal $XX.X exceeded of million revenue was original for the end $XXX.X adjusted the at record range high million original the EBITDA delivered midpoint range. of Our of the which of and guidance

our shareholders. of to quality predictable deliver proud our ability for results are We

respectively. the approximately Included tariffs. for XXXX million XX% $X.X was million is points the to earn-out $X.X quarter from EBITDA EBITDA million our adjusted as in of acquisition-related related for basis fiscal impacts or year Our of and well XX XX% adjusted as revenue figure China $XX.X expense approximately and

payable Finally, we to and cash management receivable drove related good through from to $XX.X million inventory. strong and cash our collections accounts accounts

our cash million As Ron mentioned $XX from coming with by million we had operations. $XX balance grew

Now Services. start our delivering for move were a on discussing strong important I'll I'm segments fiscal results a going QX. basis. in with to IoT of our to performance Products & Both segment our

Services $XX.X the from is of and year-over-year cellular products. IoT million the decrease in quarter The up to Products & that lower our representing for fiscal revenue Our majority for network a related was year-over-year X.X%. quarter of sales fourth decline

by from acquisition our was sales year Products IoT Services fiscal our $X.X the by improved million. well & January offset partially products since That and $XXX.X products. from the growth increased to XXXX. our The by embedded XXXX X.X% revenue RF lower from as million For mainly occurred network in revenue driven Accelerated was sales of incremental increase as

and mix & was manufacturing points. increase IoT XX.X% for Products compared fiscal driven of QX margin QX XX.X% prior basis Gross fiscal to for increase our costs. The was favorable which by is product an in XX Services lower

we gross fiscal to year. year due unfavorable incurred IoT products, that have our lower For Products higher That's XX.X%. which our lower mix, offsetting network the & X.X% was fiscal during Partially that of Services as the manufacturing sales we typically declined had primarily from margins. XXXX gross to margin costs product

IoT If I to over shift Solutions.

total XX,XXX exiting approximately the of fourth As Ron which of solutions mentioned, sites, recurring with annualized an is Solutions million, the IoT ARR, revenue, our business XX% $XX surpassed nearly quarter revenue. or

an additional and These We increases million existing our in increase of purchases as driven by quarter recurring increases base. year X.X% respectively. well finished the equipment from the and were $X.X fiscal deployments, million as XX.X% customer with customers, revenue $XX.X of with of revenue upgrades new

implementation quarter of QX. primarily -- IoT implementation higher This the in the that QX prior margin compares costs decrease XX.X% to Solutions fiscal last related For compared to XX.X% year. fiscal gross to was incurred incurred costs was

increased year, growth ARR of is the The recurring with of our demonstrates leverage expected For the and X.X%. be an XX.X%, revenue. would our increase our reflective that was gross margin in increase

additional Finally, a items to mention. few balance sheet

cash As $XX.X our balance million. Ron discussed, of

continuing strong million September In drive balance sequentially progress down inventory we down cash million We our as through and is $X million, addition XXXX. prior year. $X.X that this by of to our $XX.X fiscal year to anticipate balance performance, from

performance non-operating non-GAAP We believe of amortization, quarter. this expenditures acquisition and We better our earn-outs, adopted exclude As of competitors. understanding mentioned a to our our EPS fiscal stock-based of expense, of compensation our in and the expanded performance this investor financial expenses. now further we against adjustments externally release, calculation gives company have other better income the acquisition-related earnings benchmarking an and community effects

provide guidance. to XXXX shift to quarter and year going full first our I'm Now

For the $XX of $XX expect fiscal revenue first million million. XXXX, to quarter of we

share. to a of $X.XX of We diluted loss $X.XX per income to expect our an EPS GAAP between be

to We between expect million our EBITDA adjusted And share. and to $X.XX to expect $X adjusted be $X diluted million. we EPS be $X.XX per

$X.XX be million. combined improvement leverage share. with million rate $X.XX gross For OpEx diluted XXXX, revenue targeted We'll targeted EPS full diluted margin to GAAP be EPS continue with of to to us adjusted $X.XX to $XXX $XXX to expect we per controls fiscal to to expanded the of focus our give per and share year $X.XX

expect EBITDA to of $XX We adjusted million. $XX million

prepared the $XX million in adjusted added Ron's With remarks, of assumed guidance XXXX. anticipating EBITDA general, close and in includes Opengear $XX to their annual above January mentioned approximately merger performance. Opengear before nine are million As of this In results that, approximately ranges. months we we've of revenue from the

the figures For the the are on available Opengear results. provided financial financial Digi is reference, unaudited in investor website that presentation

expect We $X the figure the basis in approximately than adjusted million to for Opengear GAAP a EBITDA investor posted on deck. be figure the lower

our our our by the increased of range projecting rate be for we XX% that expect year fiscal to we're included in effective in XXXX. to guidance, XXXX profitability XX%. driven That's annual tax up fiscal Finally,

I take instructions? completes could pleased your at you And questions. please That prepared and time, are this the Gigi, Ron our provide remarks. to

Operator

Roth [Operator from is Searle Scott first Instructions] Capital. question Our from

is Your open. line now

Scott Searle

Congratulations the Hey, good afternoon. for question. transaction. my on Opengear Thanks taking

Ron Konezny

Scott. Hey, thanks,

Scott Searle

Hey.

XXXX? and Opengear, follow-ups growth expect lot of kind are a cross-selling on mean, just your of off, more customer guidance. opportunities? First initial then the couple little I on existing as rate? of we how could sales And do a go looking of a approaching with that And thoughts the at you base into us had channels, historic bit just I provide you color some

Ron Konezny

and experienced double-digit that we They've the question. growth to continue. in Yes, great do past, expect

the from maybe, the sure being, opportunity tell we're we're account incorporating can guidance some at our acclimation here do anticipate any to to mapping. to You midpoint do Digi. make modest We

similar mentioned called also a I very and with DNA on similar as but with the we sometimes offerings. Opengear, have different earlier, lot of offerings, customers, share

some do So, see first take the of exercises account and can joint opportunity to some is be our one unlocked. that teams if to mapping sales there's

Scott Searle

terms provide see Okay. XXXX. a sounds breakup, little maybe that of of cellular And and color fourth side could bit looked? would not the you I I'm going the some it's little acceleration softer on sure imagine of product quarter we'd equation, in It you bit gave but if like a a how into

So, your around thoughts and acquisition? cellular products in Accelerated the general

Ron Konezny

we actually from bit had million and were expected, of good offerings Yeah. year, do core cellular The router. projects RF the we a anticipate and the They contribution our better between a its than story. embedded little but success $XX fourth quarter, in cellular network and performed XXXX through cellular contributions. will that have fiscal that large those Clearly, at the significant is product a

so, that is success the And contribute going in to cellular. particular to of

Scott Searle

three an got if flattish – guidance X% last the just I implies backing the for that think of I given XX% think you've acceleration XX%. guidance for the it guidance growth could, out December quarter, in I the in at X% Got to quarter, the Opengear year, you. organic and fiscal looking certainly quarters, of And from over to XXXX but about first for given the you've lastly, contribution

us help a could us is comfort understand feel the but key comfortable of better with certainly that bit acceleration what So, gives a half? little back you just like that, in component that so sounds a take Thanks. you standpoint? why front on cellular It the through visibility you from

Ron Konezny

Yeah. Yeah. Scott. Thanks,

Our us their tends quarter. to slower with course for days. being installation There's – quarter to as orders. not a and first not optimize restocking of is have to Channel inventory, want selling they're unusual so many and careful fiscal it's

for to us that us. have guidance So would had accelerated the previous quarter revenue gives in in did see talked the fiscal bookings ordinarily and set fiscal one be slower we tend this visibility. exceed But does to-date in first our past have a that helped than strong we've got where bit frankly quarter of what from just quite it We a little a the that large that seen we confidence quarter, visibility previously project that much into which little seen quite as larger higher QX. seen more us between about, the some didn't we accounts, we've actually

Scott Searle

Great. on Opengear congrats Thanks and again.

Ron Konezny

Thank you, Scott.

Operator

you. Thank

question Anthony is Craig-Hallum. next from from Stoss Our

Your now line is open.

Anthony Stoss

Ron and of or average my first be to they on more into many How like a sales as other $XX then have? the bit XX% Jamie, well Ron Ron, potential provide your acquisition. maybe comments to side? Opengear kind elaborate And as it Good are drawing gross is their Thanks. of little your alluding Jamie. that would customers And million there info this may congrats afternoon, average partners such type others? smart can on win you in city deals, helpful? you'd you And on anything margins,

Ron Konezny

a management infrastructure Tony. or business, Great. business. has it network of Thanks, the Opengear lot Yeah, to Digi's similarities

management experienced and combined So, margins infrastructure business. the they are than and have that Digi's products to margins that that in services margins we've higher the similar network in

that do to partners SYNNEX represent XX% business of of service direct customers business, have top they do large do a something companies, They particular. channel through combined lot but and they of their XX Ingram micro but Fortune the four in XXX close

being a narrow expanded them EMEA focus and set. do more well product they performance they've business. have They distributed book provider So to is have They have a happened a established a and beyond themselves what's branding of good relatively that recently both American very North product as have And set. into within as as APAC. well do of

services. some board, mentioned got product performance we And opportunities. you margins good of growth as they've good lift the that I across EBITDA before, cross-selling will the help So anticipate good margins, rates, think overall and

a but that different companies these time We – that's with ability proving we're that ways. partnered great a reference more field great got we've working Cities face. government about some are projects in some time, with the We've project and take to city dedicated sales. create require offer of lead publicly, this approach smart customers the team especially the the to do with problem in customer, got is it, start pipeline do projects question, this point. many one implementations. ourselves we think funding. of of some There's that's it a cities leading These of built. On have bit types to a these repeatable talking We've a encouraged by this type

Anthony Stoss

Thanks, Great. Ron.

Operator

Thank you.

question Walkley next Canaccord. Our Mike from is from

is now Your open. line

Mike Walkley

guys. Thanks Great.

Just follow-up maybe a on question. Tony's

that Just the in Jamie as we acquisition? put operating into Opengear you us model, think – customer help about from can coming just that from expenses

Jamie Loch

alluded that line. more Yeah. profile they of as flows you do with Mike, have suggests that Ron That the I margin at EBITDA think expense expanded offering kind the see with rates the that the that down in does up to they there's do. operating go-to-market with a matches strategies part go and kind Digi way sees. market the to that the is The fit good way their with it's what and really why of we structure largely line channel, of that sector,

kind really see not and product you in that good that's there's has So offering the there is anything pretty of at that unusual leverage the Digi where profile and that fits it comes margins.

I a Opengear credit. of the narrower set, product They've defined say, give And team will lot a a market. got very we'll

So OpEx portfolio. experienced than what frankly company. our profile they've is Digi a has got well-run combined quite with Their lower

Mike Walkley

up Great. help as too the you're a helpful. you since And think bit. first covered company guys can time, I've That's little starting us you about just that to you lever

You've maybe talked about solutions. looking at

are kind EBITDA models help is expense interest Thanks. you the are appetite? up assuming XXXX? you fiscal acquisition comfortable adjusted net guys you us your guys for maybe type for company? the for Jamie, of could the of Where What leveraging what So And guidance.

Ron Konezny

question. expense interest can and take don't I the Why the question first Jamie take

taking progression off increased when see largest the small the acquisition appetite you with SmartSense. can our in represents company's we to and acquisitions bigger form acquisitions. closed in if see We started from and you Opengear confidence As history. on Opengear the historically, and

to transformative great to got to they've We of for want more We're look want theme. not Opengear leaders, are but We for they've follow opportunities. a momentum, have exclusive, that got that looking be characteristics going record. bigger that we track they're opportunities

They'll frankly, solutions of based the probably They're quite, a on be a growth side recurring different. metrics to On the and based to going are revenue. as EBITDA. not on multiple going be little rates bit be

immediately may or for and as transaction, we approach as right the not opportunity. and may efficiently with use cash ended debt be it's we able think this So Opengear to particular generating being have up we the the diluting accretive shareholders not where

But solutions And depending as valuation we metrics net terms in of debt, where look for those less are the stand larger flexibility. different. we opportunities, more we'll or have upon

anticipate getting As do I a and back amount short company cash we combined could in mentioned a position net amount company relatively my visualize in significant generating positive of this a cash of the remarks, you time. to

capacity more are left with quite expanded EBITDA on some and We with a frankly take arise. should debt to then an margins opportunity company

Jamie Loch

debt to below On of as fiscal delever we a XXXX kind the assuming below LIBOR we Mike, of of at throughout it's step-downs adjusted Jamie. it rate relative the kind about ourselves. EBITDA the plus we're in something comes There through interest as number year that are move the XXX.

half and And so down between starting of kind that range stepping each L+XXX, practically year step-downs the L+XXX first moving that. that with we've got after sequentially of quarter the around

Mike Walkley

with that Is these able longer you more it city of of great projects question And to a year? million opportunity guidance? two-part on color out That fiscal on be hear, these any That's enter that? Ron XXXX over you Or maybe I'll great. $XX pipeline next be projects? one that think of pass question. to it's all might how would spread was included Great. many the is than are how the kind helpful. and long And in more

Ron Konezny

deployments this Those did project are great start questions. We last quarter. of

it did Of achieve years. revenue the an to so it contribute the $XX And $X in are recurring the expecting that five of saw to next million over annual the million somewhat upside we quarter. we about is

goes this was So XXXX. in bit that becomes in recurring beyond we'll But annualized tale with revenue that of A $XX sort little fiscal million. XXXX. The balance XXXX. million of $XX fiscal fiscal deployed deploy

Mike Walkley

The -- sorry.

Ron Konezny

Yeah.

Sorry, what?

Mike Walkley

ahead. go No,

Ron Konezny

pipeline some we're not quantity while. take Again a feedback. we're to positive prepared the but information, sales So share getting really these cycles

a the of be entities. in and success. the begin bit the number to pipeline had deceiving to of to So We've chance some terms might a share talk little of

to specific entity will We registered public be anticipating available and to user, know. it's be a share end for the are the greatly able to be it will public because

provides that explanation even project, early to So projects able potentially we're an anxiously as point more this being this what but land beyond time as awaiting additional because we're think that of anticipating described we've year. I

Mike Walkley

last one question And popped in head. Great. my

business should of to Just the closer with run going a you we on on maybe business run the solutions $X more recurring and Thanks. say last what rate bundled down implied revenue to your in in million put assume rate guidance million? and business talk of about deals, like the the to up step $X halfway the between quarter that quarter last

Ron Konezny

Yes.

we So expect do line grow. the top to

that's to because us installed And we confidence extrapolate We annualized are make base to But have the top existing a those a than were recurring will of faster and also that annualized customer revenue. expect current last than quarter, in to if more gives higher our we'll high X,XXX assume subscribers quarter. revenue going generally how retention that acceleration happening it grow. than that which bit you additions basis. ARPUs that kind on we little bundled -- of deals this up line, recurring We X,XXX think the short but encourages for the the anticipate quarterly grow

Mike Walkley

Thank very you, much.

Operator

Thank you.

Burns question from Sidoti is Greg Company. & from next Our

is line now open. Your

Greg Burns

Yes, thanks. I of solutions. dovetailing last the about guess, question kind just on the

Ron Konezny

time tough hearing Hey Greg, we're you. think a I having

Greg Burns

Okay.

better? Sounding

Jamies Loch

tough Greg hear. you're No. to pretty

Greg Burns

just call. after the you -- catch I'll I'll Okay.

Operator

Thank you.

is Schmidt Street. from question Lake Jaeson from next Our

is now line Your open.

Jaeson Schmidt

my Hey questions. taking guys, thanks for

Opengear's would is? share could solutions products or was if curious, between services and Just and the what revenue in breakdown you

Ron Konezny

Yes.

units. will business So & that the -- as Jaeson, the mentioned I report Products this business into Services remarks in my

segment. It spirit fee. customers the is Digi to what upfront the mainly of business that paying hardware-enabled business experienced an that software-defined a their all than of truly They device will its on equivalent have So of attach in historically are stronger management. do revenue although rate in attribute has

So a nature. in under of would bit -- software X% recurring revenue their be but little total

Jaeson Schmidt

helpful. channel distributors? lastly inventory in comment where as could the think just the seeing is? Okay then at you on that's And what far And you if you're that as

Ron Konezny

The $XX inventory bit previous $XX similar reported pretty but quarters channel is million around or that million we've maybe than little to mark. what it's so a around higher in that

James Loch

actually it's wasn't fairly consistent of movement fiscal changed Jaeson, There stayed Yes quarter-over-quarter, so from not a lot into there. QX. a QX that fiscal lot really

Ron Konezny

Thanks Okay. a lot.

Ron Konezny

Jason. Thanks,

Operator

[Operator you. from Thank next question First Our is from Instructions] Analysis. Gearhart David

Your line is now open.

David Gearhart

on Solutions Hi, roughly should revenue the far model In get good wondering go kind grow wanted that afield can for annually you you've if too total my the said questions. Solutions Thank not XX% to what is. a we IoT line? I metric I I basis. you business to shift And that past, was afternoon. that know of the on back IoT the update taking business. so could

Ron. Konezny

XX% Yes, it's where revenue, topline we a is the the a over focus which with goal question. want last this the years land. growing fair good business more this We've business couple in of to on our recurring achieved really of on and

base are revenue But that. for than and top to to expectations Our that XX%. XX% faster should the probably grow recurring subscriber line annualized growth closer

David Gearhart

per you've just and X,XXX, a And the units normal it? of more one or is And work? project-based Got it. And quarters additions, confidence site to think back lowest what normal flows since plus why curious asset business. it for to X,XXX site your you Is the then was quarter? just back had it ebbs I get gives to the up additions,

Ron Konezny

Yes that's question another real David. good

are side, any or think positive as seen either interest X.X trends enabled our we the have think current caused SmartSense competition customers on to a anticipate move business. quarter. in market subscriber we projections starting last platform this haven't challenged that's us the that the as that do numbers I seeing and improved much that destination of customers' in think quarter. little I We bit we hiccup do to confidence a I

expect for a but right you're little for back of this not do than only the the achieved. -- we but bounce bit as And -- So but traditionally was last we've year lower to what quarter balance well. that quarter,

David Gearhart

And question. the last housekeeping What quarter? the in me Got was for the it. one CapEx

Jamie Loch

QX. year right were the for in we yes -- now the For $XXX for David, under million CapEx quarter

David Gearhart

That's it. it from you. me. Thank Got

Operator

Thank showing further you. questions. I Officer like no and for this back the Konezny I turn over Chief call closing to am would to remarks. Ron Executive time, At President

Ron Konezny

Gigi. entire and to you, Thank want In thank closing, customers team, partners. our our the Digi I

in believe we are to and leading IoT them Thank We shareholder you. and with our unwavering support build We trust mission that investor confidence. offerings. will value earn

Operator

Thank Ladies participating. this gentlemen, call. and concludes today's conference for you

disconnect. may now You

Digi International (DGII) 14 Nov 192019 Q4 Earnings call transcript