XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Information | 6 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION We have two reportable operating segments for purposes of ASC 280-10-50 "Segment Reporting": (1) IoT Products & Services (formerly M2M), and (2) IoT Solutions (formerly Solutions). Our segments are described below: IoT Products & Services Our IoT Products & Services segment is composed of the following communications products and development services and includes our recent acquisition of Accelerated:
• | Cellular routers and gateways;
• | Radio frequency (RF) which include our XBee® modules as well as other RF solutions;
• | Embedded products include Digi Connect® and Rabbit® embedded systems on module and single board computers;
• | Network products, which has the highest concentration of mature products, including console and serial servers and USB connected products;
• | Digi Wireless Design Services;
• | Digi Remote Manager®; and
• | Support services which offers various levels of technical services for development assistance, consulting and training.
IoT Solutions We have formed the IoT Solutions segment primarily through four acquisitions: the October 2015 acquisition of Bluenica, the November 2016 acquisition of FreshTemp, the January 2017 acquisition of SMART Temps and the October 2017 acquisition of TempAlert. Our IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. These products and services are provided to food service, transportation, education, healthcare and pharma, and industrial markets and are marketed as SmartSense by Digi™, formerly Digi Smart Solutions™. We measure our segment results primarily by reference to revenue and operating income (loss). IoT Solutions revenue includes both product and service revenue. Certain costs incurred at the corporate level are allocated to our segments. These costs include information technology, employee benefits and shared facility services. The information technology and shared facility costs are allocated based on headcount and the employee benefits costs are allocated based on compensation costs. 9. SEGMENT INFORMATION (CONTINUED) Summary operating results for each of our segments were as follows (in thousands):
|  | Three months ended March 31, |  | Six months ended March 31,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenue |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 49,825 |  |  | $ | 43,873 |  |  | $ | 90,705 |  |  | $ | 88,809 |
IoT Solutions |  | 4,966 |  |  | 1,742 |  |  | 9,283 |  |  | 1,981 |
Total revenue |  | $ | 54,791 |  |  | $ | 45,615 |  |  | $ | 99,988 |  |  | $ | 90,790 |
Operating (loss) income |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 4,689 |  |  | $ | 2,710 |  |  | $ | 5,953 |  |  | $ | 5,797 |
IoT Solutions |  | (4,186 | ) |  | (1,198 | ) |  | (7,573 | ) |  | (1,863 | )
Total operating (loss) income |  | $ | 503 |  |  | $ | 1,512 |  |  | $ | (1,620 | ) |  | $ | 3,934 |
Depreciation and amortization |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 1,729 |  |  | $ | 953 |  |  | $ | 2,578 |  |  | $ | 1,800 |
IoT Solutions |  | 1,559 |  |  | 436 |  |  | 3,115 |  |  | 590 |
Total depreciation and amortization |  | $ | 3,288 |  |  | $ | 1,389 |  |  | $ | 5,693 |  |  | $ | 2,390 |
Total expended for property, plant and equipment was as follows (in thousand):
|  | Six months ended March 31,
|  | 2018 |  | 2017
Expended for property, plant and equipment |  |  |  |
IoT Products & Services |  | $ | 785 |  |  | $ | 962 |
IoT Solutions |  | — |  |  | 22 |
Total expended for property, plant and equipment |  | $ | 785 |  |  | $ | 984 |
Total assets for each of our segments were as follows (in thousands):
|  | March 31, 2018 |  | September 30, 2017
Assets |  |  |  |
IoT Products & Services |  | $ | 207,682 |  |  | $ | 182,555 |
IoT Solutions |  | 92,016 |  |  | 47,644 |
Unallocated* |  | 59,638 |  |  | 114,990 |
Total assets |  | $ | 359,336 |  |  | $ | 345,189 |
*Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities. Total goodwill for each of our segments were as follows (in thousands):
|  | March 31, 2018 |  | September 30, 2017
Goodwill |  |  |  |
IoT Products & Services |  | $ | 105,791 |  |  | $ | 98,981 |
IoT Solutions |  | 50,191 |  |  | 33,014 |
Total goodwill |  | $ | 155,982 |  |  | $ | 131,995 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration