HIGHOutside partySupplier
manufacturer in China
“10-K Item 1A: 'Ventus relies almost exclusively on a manufacturer in China for the production of the hardware it provides to its customers'”
DGII · Concentration risk · 10-K extracted
Digi International (DGII) concentration risks
Updated
The most significant concentration Digi International discloses is manufacturer in China, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Digi International’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 4 disclosed concentrations
HIGH2
MEDIUM1
LOW1
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHOutside partySupplier
single-sourced suppliers
“10-K Item 1: 'We have several single-sourced supplier relationships, either because alternative sources are not available or because the relationship is advantageous to us'”
MEDIUMOutside partyCustomer
fewer than twenty customers
“10-K Item 1A: 'its business historically has been significantly concentrated on its relationships with fewer than twenty customers'”
LOWOutside partyCustomer
13%
one distributor customer
“10-K Item 1: 'We had one distributor customer of Digi's IoT Products & Services segment that represented 13% of consolidated revenue for the twelve months ended September 30, 2025'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company's concentration profile is notable for presenting multiple high-share exposures on both the supply and customer sides simultaneously. The most operationally acute is the manufacturing dependency within the Ventus business: Ventus relies almost exclusively on a single manufacturer in China for the hardware it provides to customers, a high-share dependency by disclosed size. This is the most event-sensitive exposure in the profile — a disruption at that manufacturer, whether from geopolitical, operational, or tariff-related causes, would directly affect Ventus's ability to fulfill hardware commitments. Running alongside this is a broader single-source supplier exposure across the company: several single-sourced supplier relationships exist where alternative sources are either unavailable or the relationship is considered advantageous, again a high-share dependency by disclosed size. This reinforces rather than diversifies the manufacturing concentration, suggesting that supply-chain singularity is a recurring structural feature across product lines. On the customer side, one business segment has historically been significantly concentrated on relationships with fewer than twenty customers, a moderate concentration by disclosed size. At the individual customer level, one distributor in the IoT Products and Services segment represented 13% of consolidated revenue for the twelve months ended September 30, 2025 — a low share by disclosed size. The customer-side exposure is therefore moderate in aggregate but diffuse at the individual account level. Together, the supply dependencies are the dominant risk in the profile, with the Ventus China hardware manufacturer representing the most concentrated single-point vulnerability. The customer concentration adds secondary dependency risk but at a lower share.
For the engine’s reasoning on DGII’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Communication Equipment
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| DGII● | Digi International Inc. | 2 | 1 | 1 | 4 |
| AAOI | Applied Optoelectronics, Inc. | 2 | 1 | 0 | 3 |
| CSCO | Cisco Systems, Inc. | 1 | 0 | 0 | 1 |
| CIEN | Ciena Corporation | 0 | 2 | 2 | 4 |
| BDC | Belden Inc | 0 | 2 | 1 | 3 |
| ASTS | AST SpaceMobile, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.