Digi Intl (DGII) reported results after the bell tonight that were a bit better than what analysts expected.  The company reported a non GAAP Q3 EPS of $0.09, 2 cents better than the analyst estimate of $0.07. Revenue for the quarter was $47.2 million, which was a bit higher than the estimate of $46.90 million.  Those numbers were about inline with what they posted a year ago and incrementally better than the previous quarter.  All in all, not great but good. 

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The guidance break down is as follows:

Sees Q4 EPS of $0.08 – $0.13, versus $0.08 consensus.
Sees Q4 sales of $46 – $50 million, versus $47.6 million consensus.
Sees FY10 sales $181 – $185 million, versus 182.5 million consensus

“Our third fiscal quarter 2010 results show significant strength.  The revenues in the first nine months of fiscal 2010 increased $9.4 million, or 7.4%, over the first nine months of the previous fiscal year. On both a GAAP and non-GAAP basis our earnings through the first nine months of fiscal 2010 are well ahead of our earnings in the same period of fiscal 2009.”

The company has also provided an update on the investigation into improper business practices it first reported a few months ago.  They found violations of company policy and internal controls involving three employees in Hong Kong and the CFO who resigned.  Until the SEC and DOJ have completed their investigation, they are unsure what kinds of penalties will be imposed by the SEC and/or the DOJ.  The company is working to put policies in place to ensure it never happens again.

Shares of DGII are fractionally higher in after hours trading.  After a healthy correction off the March highs, it appears the stock has stabilized and may be carving out a new base.