Digi Int'l. Sees Thailand Fire To Impact Q1 EPS In Range Of $0.03 - $0.04

(RTTNews) - On November 12, 2014, Digi International Inc. (DGII) reported that a fire had significantly impacted the operations of SVI Public Company Ltd., a contract manufacturer it utilizes near Bangkok, Thailand. The firm is issuing an update on the situation and its anticipated impact on its results.

While the fire caused a significant disruption to its short-term manufacturing capacity, the company's efforts to redirect production requirements to other contract manufacturers, accelerate production in its own facility and resume limited production at another SVI facility have progressed better than we originally expected. Also, it currently anticipates the replacement cost of equipment it owned that was destroyed or irreparably damaged in the fire to be covered by insurance proceeds.

The firm does not anticipate that the fire would impact on its fiscal first quarter results. Specifically, it sees the revenue impact from the fire on the quarter ending December 31, 2014 to be in the range of $1.5 million - $2.5 million. Digi expects the fire to impact earnings per share in the range of $0.03 to $0.04 in the first quarter.