Digi International Finds New CEO
After an eight-month search, Digi International Inc. found its successor to retiring president and CEO Joseph Dunsmore: Ron Konezny will take over the company effective Dec. 17.
Konezny will join Minnetonka-based Digi after serving as a vice president for Sunnyvale, California-based Trimble Navigation Limited, which makes GPS receivers, laser rangefinders and inertial navigation systems. In 2011, Trimble acquired PeopleNet, a telecommunications provider Konezny founded in Minnetonka in 1996. Digi, also a wireless communications provider, announced Konezny’s hiring on Wednesday.
“I am excited to join the Digi team and lead the company forward in the wireless M2M (machine to machine) and Internet of Things marketplace,” Konezny said in a statement. “Digi provides high-quality networking solutions, and we will build on this foundation as we sharpen our execution on the products and services Digi offers in this dynamic marketplace to better serve our customers and enhance value for our shareholders.”
Konezny, 46, will also serve on Digi’s board of directors.
The company first announced Dunsmore’s retirement in April and said it hired a Chicago-based search firm to help identify his successor. Though it left open the possibility that a replacement would begin sooner, it said Dunsmore would remain employed through December 31. Dunsmore, 55, joined Digi in 1999 as president and CEO and was elected chairman of the board a year later.
Digi’s revenue totaled $192.7 million for fiscal 2014, which ended September 30, down 1.4 percent from 2013. The company said service revenue was under pressure all year as customers cancelled or deferred projects that were not replaced. Digi also said its growth products did not meet revenue expectations, due to a drop in revenue from certain customers who delayed purchases during the fiscal year. In its year-end results, the company also reported roughly $1 million in expenses related to its CEO transition in fiscal 2014.
After announcing the hire, Digi’s stock price climbed more than 5 percent Wednesday and traded around $7.64 per share by mid-afternoon, up from its opening price of $7.25.