Digi International (Nasdaq: DGII) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q3), Digi International met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
 Digi International logged revenue of $48.8 million. The five analysts polled by S&P Capital IQ expected a top line of $49.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. Non-GAAP EPS of $0.05 for Q3 were 29% lower than the prior-year quarter's $0.07 per share. GAAP EPS of $0.06 for Q3 were 33% lower than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 50.6%, 350 basis points worse than the prior-year quarter. Operating margin was 3.9%, 250 basis points worse than the prior-year quarter. Net margin was 3.1%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $51.5 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $195.2 million. The average EPS estimate is $0.24.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 101 members out of 109 rating the stock outperform, and eight members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Digi International a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digi International is hold, with an average price target of $10.33.

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