Digi revenues increase 9% to €340 million in 2021 first-quarter
Digi Communications revenues increase 9% to €340 million in 2021 first-quarter. It achieved 13 percent RGU growth to 18.7 million subscriptions at the end of March.
Digi Communications saw its revenues increase 8.6 percent to EUR 340.2 million in Q1. It achieved 13 percent RGU growth to 18.7 million subscriptions at the end of March. Adjusted EBITDA improved by 68 percent to EUR 122.5 million (including IFRS 16).
oT Product & Services
The segment’s first fiscal quarter 2021 revenues of $61.8 million increased 13.1% from the same period in the prior fiscal year. This increase is attributed primarily to the increased sales of console servers, partially offset by decreased sales of cellular routers.
The gross profit margin increased 900 basis points to 57.8% of revenues for the first fiscal quarter of 2021. Products acquired through the acquisition of Opengear were the primary driver of the margin rate increase. Operating income of $1.3 million decreased by $3.1 million, or 71.1% from the same period in the prior fiscal year. Included in the first quarter of fiscal 2021 was an earn-out adjustment of $5.8 million.
The segment’s first fiscal quarter 2021 revenues of $11.3 million increased 47.5% from the same period in the prior fiscal year. New and existing customer deployments and equipment upgrades drove the increase. We now service over 75,000 sites as of December 31, 2020, compared to nearly 67,000 sites as of December 31, 2019.
Gross profit margin decreased 250 basis points compared to the prior-year first fiscal quarter, as revenue from hardware product sales was significantly higher and have lower gross margins than our recurring revenue. Operating loss of $1.4 million in the first quarter of fiscal 2021 improved by $3.5 million, or 71.0%.
As announced on January 7, 2021, Digi will discuss its first fiscal quarter 2021 results on a conference call on Wednesday, February 3, 2021, aftermarket close at 5:00 p.m. ET (4:00 p.m. CT). The call will be hosted by Ron Konezny, President and Chief Executive Officer, and Jamie Loch, Chief Financial Officer.
About Digi International
Digi International (Nasdaq: DGII) is a leading global provider of IoT connectivity products, services, and solutions. We help our customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability.
Founded in 1985, we’ve helped our customers connect over 100 million things and growing. For more information, visit Digi’s website at www.digi.com, or call 877–912–3444 (U.S.) or 952–912–3444 (International).