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Digi International Inc.
8/5/2026
Good day and thank you for standing by. Welcome to the Fiscal Q3 2026 Digi International Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jamie Loch, Chief Financial Officer. Please go ahead.
Thank you. Good day, everyone. It's great to talk to you again, and thanks for joining us today to discuss the earnings results of Digi International. Joining me on today's call is Ron Konezny, our President and CEO. We issued our earnings release after the market closed today. You may obtain a copy of the press release through the financial releases section of our investor relations website at digi.com. This afternoon, Ron will provide a comment on our performance, and then we'll take your questions. Some of the statements that we make during this call are considered forward-looking and are subject to significant risks and uncertainties. These statements reflect our expectations about future operating and financial performance and speak only as of today's date. We undertake no obligation to update publicly or revise these forward-looking statements. While we believe the expectations reflected in our forward-looking statements are reasonable, we give no assurance such expectations will be met or that any of our forward-looking statements will prove to be correct. For additional information, please refer to the forward-looking statement section in our earnings release today and the risk factor section of our most recent Form 10-K and subsequent reports on file with the SEC. Finally, certain of the financial information disclosed on this call includes non-GAAP measures. The information required to be disclosed about these measures, including reconciliations to the most comparable GAAP measures, are included in the earnings release. The earnings release is also furnished as an exhibit to form 8K that can be accessed through the SEC filing sections of our investor relations website. Now, I'll turn the call over to Ron.
Thank you, Jamie. and thanks everyone for joining our call today. We are so excited to share an update on our progress and what we expect in the current quarter. But before we go into that, let me just remind everybody DIGI's core value proposition. We really drive ROI by establishing remote presence, whether through an industrial router connected to remote oil well, whether it's an open gear console server and a data center, smart sense, in a pharmacy, food, or hospital application, dentists through point of sale systems, or infrastructure management and manufacturing. We are enabling our customers to gain great efficiency by connecting to not just the Digi devices, but the assets that we're helping them monitor. We can help them adjust to technical regulatory changes. We can update software to comply with security protocols. We can adapt to business opportunities and challenges. We can increase asset uptime. We can reduce the number of field calls that need to be made. All of those bring tremendous value to organization on top of learning more about how your asset is performing in the field and driving that learning into the next generation of your solution. We pull our customers annually, and we ask them, what are the attributes that you're looking for in your IoT solution? And to no surprise, reliability is The number one priority for our customers, and it's been so for a number of years. We rank well both in their mind and versus our competition. We've got over 40 years of experience, and it makes sense. If you're monitoring a remote device, you need that remote management system to perform all the time and for a long period of time. What's increasingly become a priority is security. With news that seems to come every day and accelerating on security breaches, whether it be the water management system in Minnesota, whether it be AI models escaping their labs, keeping your IoT system secure is of utmost performance. These systems have to scale both in numbers and across geographies, and they've got to be easy to use. We are involved in business and mission critical applications, that combination of attributes. is what Digi really excels at, and we can provide the complete solution. We're providing the edge device, we're providing connectivity if the customer needs it, software services, and we're now adding on top of that our newest attribute, which is AI. We recently introduced a new tool called DANI, Digi Artificial Network Intelligence, that allows you to talk to your Digi equipment and the things it's connected to in natural language. No more standard reports, no more configuring dashboards. You just ask our system and the things it's attached to, how is my network performing today? Are there any software updates to be made available? And you can even, over time, ask our system to perform those actions. There will always be a human at the wheel, but we can make managing your system much easier with the advent of AI. Those results are showing up. this quarter and next quarter. I'm going to pass it to Jamie to review some of the highlights.
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