Put Digi International (DGII) on your radar, particularly tomorrow morning.  This is a smart grid play to keep an eye on and continues to look quite bullish. They don’t generate a lot of revenue yet from smart grid deployments, but that should change in the years to come.  Itron (ITRI) is using their technology.. enough said.  The stock has been running up since last December with volume and recently broke out to a new 52 week high before pulling back and testing support at the 50 day moving average where it’s trading at now. 

The company reported earnings after the bell that beat estimates by a bit, posting an EPS of .07/share on revenues of $45.1 million.  Those aren’t world beating results, but may just be good enough to catapult the stock off that 50 day moving average tomorrow.  It’s a 100% increase in earnings over the year ago, but that’s compared to a very week year ago quarter.  It’s up 1% in after hours trading.

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Next quarter, the company expects similar results – EPS in the range of .07 – .11/share and revenues in the $44 – $48 million range.  For the full fiscal year 2010, I’m not real impressed with  the guidance on EPS which is a wide range of .21 – .42/share, but that’s a .03 increase on the lower end from previous guidance.  I’d like to see that bottom number come up quite a bit next quarter.  They predict full year revenues in the $174 – 190 million range, which is also a bit higher on the lower end than previous guidance.

In summary, DGII certainly isn’t what I would call a top tier smart grid play, but it is worth watching and technically it’s very bullish.  Let’s see if it can breakout with volume tomorrow off this earnings report.