Update: Digi International Earnings Show No Sign Of A Sales Rebound
- Digi International reported the third mediocre quarterly results in a row, dampening hopes of a sales growth turnaround.
- While margin deterioration and sales growth slowdown were anticipated by the thesis, the speed and magnitude surprised both me and the company.
- I remain bullish on the machine-to-machine trends. I will give DGII two more quarters to show a sales rebound before switching to stronger competitors Sierra Wireless and Gemalto.