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

The 10-second takeaway
 For the quarter ended March 31 (Q2), Digi International met expectations on revenues and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
 Digi International chalked up revenue of $48.2 million. The four analysts polled by S&P Capital IQ expected revenue of $48.1 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 $0.04. The four earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS of $0.04 for Q2 were 50% lower than the prior-year quarter's $0.08 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 51.8%, 190 basis points worse than the prior-year quarter. Operating margin was 0.8%, 630 basis points worse than the prior-year quarter. Net margin was 2.1%, 220 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 $0.10.

Next year's average estimate for revenue is $200.7 million. The average EPS estimate is $0.33.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 103 members out of 111 rating the stock outperform, and eight members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 outperform, with an average price target of $11.17.

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