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DIGI INTERNATIONAL REPORTS FISCAL 1993 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS

 MINNEAPOLIS, Nov. 18 /PRNewswire/ -- Digi International Inc. (NASDAQ: DGII) today announced financial results for its fiscal fourth quarter and year ended Sept. 30, 1993.
 Sales for the fourth quarter were $24.5 million, up 20 percent over $20.4 million for the same quarter in 1992. Earnings were $3.3 million, or 23 cents per share, versus $3.7 million, or 26 cents per share, reported in the fourth quarter of the previous year.
 Sales for the year ended Sept. 30, 1993 totaled $93.4 million, up 32 percent from $70.9 million for the year-ago period. Before a cumulative prior-year effect due to the initial application of SFAS No. 109, Accounting for Income Taxes, earnings rose 18 percent to $14.8 million or $1.02 cents per share for fiscal year 1993, from $12.6 million, or 87 cents per share for the previous year. The financial results for all periods presented in this report include the results of operations of Star Gate Technologies, Inc., acquired on April 13, 1993, reflected using the pooling-of-interests accounting method.
 Earnings for the fourth quarter and fiscal year were reduced by $600,000, or 4 cents per share, for the settlement of IRS examinations finalized during the fourth quarter. The settlement covered tax years through 1992 and related substantially to issues of purchase price allocations for acquisitions that occurred in 1990 and 1991. All issues raised have been resolved and will have no future impact.
 Without this charge, net income for the quarter and year end would have been $3,900,527 and $15,504,764 or $.27 and $1.07 per share, respectively.
 Mike Moroz, president and chief executive officer of Digi International, said, "We are very encouraged by the 32 percent increase in sales in a tough year, but we're especially proud of the 24 percent increase in operating income. This shows our continued commitment to cost control and manufacturing efficiencies even in the face of a challenging environment for procuring components. The sales growth was fueled chiefly by strong sales to North American distributors and by increased sales of our products for local area networking (LAN) and wide area networking (WAN) environments."
 Digi International is a leading provider of networking products. The company produces these products under the DigiBoard, Arnet, Star Gate and MiLAN tradenames for the rapidly growing networked systems connectivity market. Digi International has recently been ranked on the best small companies lists by Forbes and Business Week magazines.
 DIGI INTERNATIONAL
 Financial Statement
 Three months ended
 9/30/93 9/30/92
 Sales $24,450,901 $20,355,565
 Operating income 5,316,956 4,935,018
 Net income $3,300,527(a) $3,686,840
 Net income per share $.23(a) $.26
 Weighted average common and common
 equivalent shares outstanding 14,572,249 14,443,417
 12 months ended
 9/30/93 9/30/92
 Sales $93,385,218 $70,867,261
 Operating income 20,816,528 16,728,460
 Income before cumulative effect of
 a change in accounting for income
 taxes 14,782,664 12,555,137
 Cumulative effect of the change in
 accounting for income taxes 122,100 --
 Net income $14,904,764(a) $12,555,137
 Net income per share before
 cumulative effect of change in
 accounting for income taxes $1.02 $.87
 Cumulative effect of the change in
 accounting for income taxes .01 --
 Net income per share $1.03(a) $.87
 Weighted average common and common
 equivalent shares outstanding 14,563,679 14,443,417
 (a) Net income for the quarter and year end would have been $3,900,527 and $15,504,764 or $.27 and $1.07 per share, respectively, excluding the fourth quarter tax settlement.
 -0- 11/18/93
 /CONTACT: Jerry Wall, 612-943-9020; or Maureen McGarrigle, 612-943-5347, of Digi International/
 (DGII)


CO: Digi International, Inc. ST: Minnesota IN: CPR SU: ERN

CP-AL -- MN003 -- 6265 11/18/93 17:16 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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