Digi International (Nasdaq: DGII) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q1), Digi International met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
 Digi International booked revenue of $47.0 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $47.1 million on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $46.7 million.

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 $0.04. The five earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.05 for Q1 were 67% higher than the prior-year quarter's $0.03 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 52.1%, 140 basis points worse than the prior-year quarter. Operating margin was 3.6%, 130 basis points better than the prior-year quarter. Net margin was 2.6%, 100 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $51.9 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $206.8 million. The average EPS estimate is $0.40.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 114 rating the stock outperform, and seven 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 $11.25.

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