Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Stock Listing
Our common stock trades under the symbol DGII on the Nasdaq Global Select Market tier of the Nasdaq Stock Market LLC. On November 20, 2020 there were 111 stockholders of record.
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Dividend Policy
We have never paid cash dividends on our common stock. Our Board of Directors presently intends to retain all earnings for use in our business and does not anticipate paying cash dividends in the foreseeable future.
Issuer Repurchases of Equity Securities
The following table presents the information with respect to purchases made by or on behalf of Digi International Inc. or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during the fourth quarter of fiscal 2020:
Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of a Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
July 1, 2020 - July 31, 2020 434 $ 12.12 — $ —
August 1, 2020 - August 31, 2020 7,061 $ 13.32 — $ —
September 1, 2020 - September 30, 2020 — $ — — $ —
Total 7,495 $ 13.25 — $ —
(1) All shares reported were forfeited by employees in connection with the satisfaction of tax withholding obligations related to the vesting of restricted stock units.
Performance Evaluation
The graph below compares the total cumulative stockholders’ return on our common stock for the period from the close of the Nasdaq Stock Market - U.S. Companies on September 30, 2015 to September 30, 2020, the last day of fiscal 2020, with the total cumulative return for the Nasdaq U.S. Benchmark TR Index (the "U.S. Benchmark Index") and the Nasdaq Telecommunications Index (the "Peer Index") over the same period. We have determined that our line of business is mostly comparable to those companies in the Peer Index. The index level for the graph and table was set to $100 on September 30, 2015, for our common stock, the U.S. Benchmark Index and the Peer Index and assumes the reinvestment of all dividends.
FY15 FY16 FY17 FY18 FY19 FY20
Digi International Inc. $ 100.00 $ 96.69 $ 89.91 $ 114.08 $ 115.52 $ 132.57
Nasdaq U.S. Benchmark TR Index $ 100.00 $ 115.23 $ 136.80 $ 161.14 $ 165.93 $ 191.58
Nasdaq Telecommunications Index $ 100.00 $ 126.05 $ 127.52 $ 131.48 $ 150.56 $ 155.36
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ITEM 6. SELECTED FINANCIAL DATA
(in thousands, except per common share data amounts and number of employees)
For Fiscal Years Ended September 30, 2020 2019 2018 2017 2016
Revenue $ 279,271 $ 254,203 $ 226,893 $ 181,340 $ 203,005
Gross profit $ 143,972 $ 119,035 $ 109,054 $ 87,233 $ 99,680
Sales and marketing 52,761 45,801 44,517 33,955 33,847
Research and development 43,765 37,564 33,178 28,566 30,955
General and administrative 36,012 25,685 28,276 13,331 17,026
Restructuring charges (reversals) 117 (87) 301 2,515 747
Operating income 11,317 10,072 2,782 8,866 17,105
Total other (expense) income, net (3,854) 1,073 468 684 (415)
Income before income taxes 7,463 11,145 3,250 9,550 16,690
Income tax (benefit) expense (1) (948) 1,187 1,619 147 3,212
Income from continuing operations 8,411 9,958 1,631 9,403 13,478
Income from discontinued operations, after income taxes — — — — 3,230
Net income $ 8,411 $ 9,958 $ 1,631 $ 9,403 $ 16,708
Basic net income per common share:
Continuing operations $ 0.29 $ 0.36 $ 0.06 $ 0.36 $ 0.52
Discontinued operations $ — $ — $ — $ — $ 0.13
Net income $ 0.29 $ 0.36 $ 0.06 $ 0.36 $ 0.65
Diluted net income per common share:
Continuing operations $ 0.28 $ 0.35 $ 0.06 $ 0.35 $ 0.51
Discontinued operations $ — $ — $ — $ — $ 0.12
Net income (2) $ 0.28 $ 0.35 $ 0.06 $ 0.35 $ 0.64
Balance sheet data as of September 30,
Working capital (current assets less current liabilities) $ 108,828 $ 148,089 $ 126,473 $ 155,911 $ 171,837
Total assets $ 528,682 $ 398,698 $ 372,146 $ 345,696 $ 336,166
Long-term debt, less current portion $ 58,980 $ — $ — $ — $ —
Stockholders' equity $ 371,500 $ 348,978 $ 330,493 $ 319,029 $ 300,029
Book value per common share (stockholders' equity divided by outstanding shares) $ 12.74 $ 12.36 $ 12.05 $ 12.01 $ 11.52
Number of employees as of September 30 656 543 516 514 515
(1) In fiscal 2020, we recorded discrete net tax benefits of $1.2 million, in fiscal 2019, we recorded discrete net tax benefits of $0.5 million and in fiscal 2018 we recorded discrete net tax expense of $1.5 million (see Note 13 to our consolidated financial statements). In fiscal 2017, we recorded net tax benefits of $1.0 million primarily from the reversal of tax reserves due to the expiration of statute of limitations from U.S. and foreign tax jurisdictions. In fiscal 2016, we recorded net tax benefits of $1.5 million primarily from the reinstatement of the federal research and development tax credit for calendar year 2015 and the reversal of reserves due to the expiration of statute of limitations from U.S. and foreign tax jurisdictions. In addition, we filed amended income tax returns resulting in an additional domestic refund related to qualified manufacturing activities.
(2) Earnings per share are calculated by line item and may not add due to the use of rounded amounts.
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