XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.23.2

Segment Information | 9 Months Ended
--- | ---
Jun. 30, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION We have two reportable segments: IoT Products & Services and IoT Solutions. IoT Products & Services is structured to include four operating segments, each with a segment manager. These four operating segments are: •Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications; •Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications (also exclusively using cellular communications); •OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone module or from a systems-on-module ("SOM"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application; and •Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications. Following the acquisition of Ventus on November 1, 2021, IoT Solutions is now comprised of two operating segments: •SmartSense - offers wireless temperature and other condition-based monitoring services for perishable goods such as food or medicine, as well as employee task management services. •Ventus - provides Managed Network-as-a-Service ("MNaaS") solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions. The operating segments included in each reportable segment have similar qualitative and quantitative factors, which allow us to aggregate them under each reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating margins. Our CEO is our Chief Operating Decision Maker and reviews and makes business decisions using consolidated information including operating income and gross profit. Summary operating results for each of our segments were (in thousands):
|  | Three months ended June 30, |  | Nine months ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Revenue |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 87,358 |  |  | $ | 79,758 |  |  | $ | 257,593 |  |  | $ | 216,872 |
IoT Solutions |  | 24,878 |  |  | 23,759 |  |  | 75,093 |  |  | 65,615 |
Total revenue |  | $ | 112,236 |  |  | $ | 103,517 |  |  | $ | 332,686 |  |  | $ | 282,487 |
Gross Profit |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 47,229 |  |  | $ | 42,643 |  |  | $ | 140,367 |  |  | $ | 116,779 |
IoT Solutions |  | 16,590 |  |  | 14,783 |  |  | 47,845 |  |  | 40,512 |
Total gross profit |  | $ | 63,819 |  |  | $ | 57,426 |  |  | $ | 188,212 |  |  | $ | 157,291 |
Operating Income (Loss) |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 12,096 |  |  | $ | 10,881 |  |  | $ | 37,744 |  |  | $ | 24,046 |
IoT Solutions |  | 380 |  |  | (907) |  |  | (1,130) |  |  | (2,709) |
Total operating income |  | $ | 12,476 |  |  | $ | 9,974 |  |  | $ | 36,614 |  |  | $ | 21,337 |
Depreciation and Amortization |  |  |  |  |  |  |  |
IoT Products & Services |  | $ | 3,108 |  |  | $ | 3,471 |  |  | $ | 9,446 |  |  | $ | 10,633 |
IoT Solutions |  | 4,896 |  |  | 5,276 |  |  | 14,516 |  |  | 14,760 |
Total depreciation and amortization |  | $ | 8,004 |  |  | $ | 8,747 |  |  | $ | 23,962 |  |  | $ | 25,393 |
8. SEGMENT INFORMATION (CONTINUED) Total expended for property, plant and equipment was (in thousands):
|  | Nine months ended June 30,
|  | 2023 |  | 2022
IoT Products & Services |  | $ | 362 |  |  | $ | 1,722 |
IoT Solutions* |  | 3,291 |  |  | 2,496 |
Total expended for property, plant and equipment |  | $ | 3,653 |  |  | $ | 4,218 |
* Excluded from these amounts are $3,175 and $1,742 of transfers of inventory to property plant and equipment for subscriber assets for the nine months ended June 30, 2023 and 2022, respectively. Total assets for each of our segments were (in thousands):
|  | June 30, 2023 |  | September 30, 2022
IoT Products & Services |  | $ | 387,371 |  |  | $ | 390,128 |
IoT Solutions |  | 423,109 |  |  | 428,867 |
Unallocated* |  | 29,580 |  |  | 34,900 |
Total assets |  | $ | 840,060 |  |  | $ | 853,895 |
*Unallocated consists of cash and cash equivalents.

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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration