Ubiquiti (UI) 10 May 182018 Q3 Earnings call transcript

Good morning and welcome to the Ubiquiti Networks' Third Quarter Fiscal 2018 Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. At this time, I'd like to turn the conference over to Ms. Relations. Investor SVP Kiernan, Laura Please go ahead.

of and Thank us and everyone Board joining you I'm you, Chairman here the CEO Ryan, today. Founder, with for our thank Robert Networks. Ubiquiti of Pera,

started, I'd review Harbor Before we like get the to Safe statements.

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We'll first begin we you. with session. BMO Markets. will question-and-answer to And Thank now the go Capital Long Tim

I'll two if try you. Thank I can.

as than would to a I'm much. on And other touch the seeing you newly and First, you're UniFi the then out you linked. Robert, quarter? during of there and standard could in talk just products products two there Service the from Just Provider, very traction business pipeline in products attribute quarter you the weakness of know excited? you and the bit in I more anything where outside that the just is American else the secondly, little little airMAX Anything Thank that talk well are if bit announced most lumpiness quarter? where – assuming a about those in South our just few and performance were you're announced about stood any

new I Sure. can products. start with

now have Ethernet So and is whole of of businesses security APs. we're we're over as it UniFi technology one it Power switching now, is And of picking complete different course we one it, and and WiFi, and a taking two platform. we into collection UniFi within taking started consolidated to portfolio gateways UniFi main we're expanded off to video up, right all markets create trying Controller adjacent the

more It So next Switches APs PoE I generation got And good think and diversified. you'll our CloudKeys, WiFi I it's of think I finally was APs. and think when everything more we largely started, mix right. see Gateways, become now we Security pretty UniFi overtime of from video our a

to up nice will switches the I see quantities, we ramp a So our hope APs and the match video products in we've got.

up half and grown Service we Provider significantly we Ubiquiti into And Provider term sold for to and we've Service Service platform. a to shaping was think the really our the I traditionally, trying nicely. term. adding has including users UFiber year show airMAX, it the growth controller strategy you'll UNMS, these some is app UniFi, so. management the did System, mobile side, UNMS. all On Networks Management our see through or the technologies It's to And over one our integrate Operator are trend which the on dominant installations long also Provider we're like following with over technologies similar long past now new right is what things our But start active

in being to draw business hard about Provider conclusions our being question down South – Service down on your really America to it's quarter-to-quarter. – back Now,

imperfect. Our is channel

going we're and perfect from the reasons from quarterly move to far is chain supply is of away Our guidance. that one

I also there's opportunities misrepresentation they there. a strength think But the business. of our of create

our efficient, efficient, think our more channel chain supply more make more consistencies. could we if scale should we I make and see hopefully increased

Jin with Ho Bloomberg to we'll And Intelligence. next go Woo

Thank just to – XX% could eight little of international has you're you Robert, just taking my last seven segments, can strong, questions. talk more plus. just for about you Great. bit the fairly dig been about EMEA. the into quarters, EMEA you talk growing out

approaching And understand us cycle. dynamics and just there? that growth we're help Just follow-on then demand dynamics slowly the on the to the XXX.XXac

misexecution your steps a in I'm put in your misexecution ensure sorry, given of – smoother products the the issues to rollout AX for future? (XX:XX:XX) place AC, try the you AX Given first have cycle, at the

(XX:XX:XX-) Difficulty] [Technical

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please. Yes,

Okay.

about your starting AX question (XX:XX:XX). introducing of So, part first

You introductions of negatively think have And new products our into adopt AC in then to brand our production. both they hurt and customers and go not point. airMAX were great the releases well. didn't UniFi a The impacted I – and the new trust

any of disciplined perfect And we're moving sure officially released couple So make the is To platform aware traditional our demonstrated and community past R&D we now. better think forward. in vendors. performance, powerful value it's in And the next system to a it's in our years. to compared more we've the part it's network going are question in user R&D today, think about leadership and new great that Western effects the culture especially some becoming I area much before market EMEA, Europe. discipline seeing UniFi superior and experience – I the and of to much right it the largely We UniFi, see the your people of scaling due to integrator because

JMP. Suppiger go next We'll to with Eril

the one Yeah. buyback. Thanks questions, want for taking to on few my ask question. I a

than million. the about another $XXX million that more spent $XXX just You've buyback or authorized on you

in are You've you're buyback? of where back an XX% been (XX:XX:XX) what buyback? You've measuring us very bought your they aggressive interest shares. your talked Teledyne your on and returns you for how there Can their your that give update on about goals

My going problem The a we're opinion, integration. our it's to think or acquisitions. to it's performance, growing is much goal is be a and better past bank. I looking return such on in our much new And businesses difficult faster, resources We're been capital efficiently unique in share that at new cultural technology versus with we have and organically. the acquisitions culture devote buyback to my demonstrated as cash the also to use always cash by investment leaving

a I So guess, opportunity good it us. for leaves,

hand to we on stock's EPS. long-term prospects, cash future have shares improve our to feel decision We that cash our believe undervalued in and use and retire easy if the and we it's

And we'll Tal with to go Bank next America Liani of Lynch. Merrill

Tal. Bartus for for questions. Hey, Robert. Dan my This taking Thanks is on

AmpliFi. First, ask about I to wanted just

generally Just it you happy SG&A. And right the in then it's And just briefly now? needle? within fees are do professional growing at you on with Is think it expectations? moves where when your the

up fees to? you wondering If quite about is know what it, those a bit, Thanks. are related was I SG&A

Sure.

lot okay. doing better. revenue of of AmpliFi, So a It It's dollars be could rate. it's millions of tens

done And relative business have think I where I think validated, sales R&D investments. apply of has returns markets could to model on relative to different this our competitors, I we well. and our it it's model kind really can similar marketing model our think And to and and your and investment At in better. is consumer and markets, investment the to competitors critical. AmpliFi executed I we timing same our first-to-market think time,

Sorry, second part your of was? (XX:XX:XX-XX:XX:XX) question

you Thank And our now attending question-and-answer presentation. this concludes conference session. concluded. for has today's The

now may You disconnect.