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 19, 2021 there were 107 stockholders of record.
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, 2021 - July 31, 2021 — $ — — $ —
August 1, 2021 - August 31, 2021 6,679 $ 20.18 — $ —
September 1, 2021 - September 30, 2021 — $ — — $ —
Total 6,679 $ 20.18 — $ —
(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.
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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, 2016 to September 30, 2021, the last day of fiscal 2021, 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, 2016, for our common stock, the U.S. Benchmark Index and the Peer Index and assumes the reinvestment of all dividends.
FY16 FY17 FY18 FY19 FY20 FY21
Digi International Inc. $ 100.00 $ 92.98 $ 117.98 $ 119.47 $ 137.11 $ 184.82
Nasdaq U.S. Benchmark TR Index $ 100.00 $ 118.72 $ 139.84 $ 144.00 $ 166.26 $ 219.50
Nasdaq Telecommunications Index $ 100.00 $ 101.17 $ 104.31 $ 119.45 $ 123.26 $ 135.83
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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, 2021 2020 2019 2018 2017
Revenue $ 308,632 $ 279,271 $ 254,203 $ 226,893 $ 181,340
Gross profit $ 166,657 $ 143,972 $ 119,035 $ 109,054 $ 87,233
Sales and marketing 61,909 52,761 45,801 44,517 33,955
Research and development 46,623 43,765 37,564 33,178 28,566
General and administrative 46,602 36,012 25,685 28,276 13,331
Restructuring charges (reversals) 995 117 (87) 301 2,515
Operating income 10,528 11,317 10,072 2,782 8,866
Total other (expense) income, net (1,529) (3,854) 1,073 468 684
Income before income taxes 8,999 7,463 11,145 3,250 9,550
Income tax (benefit) expense (1) (1,367) (948) 1,187 1,619 147
Net income 10,366 8,411 9,958 1,631 9,403
Basic net income per common share: $ 0.32 $ 0.29 $ 0.36 $ 0.06 $ 0.36
Diluted net income per common share: $ 0.31 $ 0.28 $ 0.35 $ 0.06 $ 0.35
Balance sheet data as of September 30,
Working capital (current assets less current liabilities) $ 187,717 $ 108,828 $ 148,089 $ 126,473 $ 155,911
Total assets $ 619,531 $ 528,682 $ 398,698 $ 372,146 $ 345,696
Long-term debt, less current portion $ 45,799 $ 58,980 $ — $ — $ —
Stockholders' equity $ 472,517 $ 371,500 $ 348,978 $ 330,493 $ 319,029
Book value per common share (stockholders' equity divided by outstanding shares) $ 13.79 $ 12.74 $ 12.36 $ 12.05 $ 12.01
Number of employees as of September 30 659 656 543 516 514
(1) In fiscal 2021, we recorded discrete net tax benefits of $0.5 million, in fiscal 2020, we recorded discrete net tax benefits of $1.2 million and in fiscal 2019 we recorded discrete net tax expense of $0.5 million (see Note 1 2 to our consolidated financial statements). In fiscal 2018, we recorded net tax benefits of $1.5 million, primarily related to the enactment of the Tax Cuts & Jobs Act. 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.
(2) Earnings per share are calculated by line item and may not add due to the use of rounded amounts.
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