International announced that the operations of a contract manufacturer it
utilizes near Bangkok, Thailand has been significantly impacted due to
is causing problems with the region’s infrastructure, including facilities,
transportation and utilities. On October 22, the flooding breached a levy and inundated
the majority of the operations of the manufacturer. The contract manufacturer
is conducting a full assessment of its ability to meet its customer
operations in Thailand that service Digi are currently suspended. Digi is
assessing its ability to meet customer requirements by utilizing other existing
contract manufacturing partners, new contract manufacturers, its own US
facility, and existing inventory.
Digi is also
assessing the potential financial impact of the production constraints caused
by the flooding, and believes its revenue and gross margin will be impacted in
the first quarter of fiscal 2012. The extent of this impact is being evaluated.