Ubiquiti (UI) 24 Aug 182018 Q4 Earnings call transcript

Good morning and welcome to the Ubiquiti Networks Fourth Quarter Fiscal 2018 Conference Call. All participants are in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Laura Kiernan. ahead. go Please

and I Ann and everyone joining for of Thank here thank with today. Networks. Ubiquiti am Board CEO Robert us the you, at you Pera, Chairman Founder,

like get we the statement. started, would Before to I Safe review Harbor

actual we our and that Some on statements this call the financial are competition. unknown These results, uncertainties products, results subject make constitute of will cause during known statements, risks forward-looking and could the including and materially uncertainties our differ with factors Form to call. SEC statements future other expressed Information perspectives market on today’s at the to on our filed website from during is filings, sec.gov. those these XX-K available which the and risk most and SEC in are contained conditions recent

today, to are Q&A XX, we question. no call made we assume them. of yourself to a are will ready be questions. statements limit and one as obligation Please XXXX update This for Operator, now only. August call Forward-looking

will Thank Long you. [Operator Instructions] Markets. take our BMO Capital with question Tim from first We

strength strong about I Thank was performance just America – in UniFi enterprise talk in Could am other in little or products give anything are quarter, you. strong, am would I a assuming kind bit strong was and the sure that you but quarter? you North great? behind unit was contributed they be ASP real dynamic performance Robert, this that related. what that any can of to color other that there Thank us have the maybe you. on might

for the Thanks Sure. question.

of couple was I main maybe a think things. it

solution we getting being just add being features. continue in a expanding network fast unified as known First, and from WiFi UniFi advanced to security to with networking is

keeping – their supply second some chain two things pretty and product channel and and weaknesses big and there U.S., is is thing of I the our facility are facility our still not to we the UniFi. of but stock stock. plugged yet, still key kind the we sales setup inefficient with a in the channel is ability are that And to-date sales inventory very inefficient The those still think

continue need and improving to Moving are demand, continue expand which use our more we just then we to not and the doing verticals to meet into operations get forward, the application we yet.

to go with will We next Erik Securities. Suppiger JMP

have and thanks you I effect two One, pass to those some are, prices of if expecting cost can raising the through warehouse? on your the could. take XX or inventories through the tell the Yes, tariff to on from taking the approaching your us if are And would consider for tax? I much you front, you question. to how that has X weeks of your shipments good – now, approaching are are then inventories coming actually secondly right are been you inventory warehouse your finished inventory, your

I out of believe now U.S. a U.S. largely Asia. through ship revenue of the our center. flowing inventory directly we decent Outside is percentage our

at a of expand goods it that think maintain inventory That be level is that at still least considerable to suggests finished or point? going will as at a you you you warehouse this addition is there

sheet. that’s inventory My level demand. my meet have on the trying to we a still primary is drive now, items chronic key decisions not find priority business are to Right way and stock-outs going we on what’s balance to

take Capital Markets. will question with Long from BMO Tim follow-up We a

Thanks a lot.

Are comments margins you longer gross away, ask actions having continually would this term take like quarter, front. obviously you reduction the new margin, about front? to a inventory – and most? should with us give new what that be on the portfolio that where cost they but products shipping go product mostly newer areas would on UniFi addressing Robert cost across made have that actions there impact you higher or on focused targeted wanted the Just you we would just you is higher Can expedited of that the profiles? why products. that or from an reduction margin color sounds is that particularly But are cost that And some think the would some and little really some on it doing on

So, to introductions. product we be also reductions, are plan but on to continuously making we new good cost continue aggressive

going a to For larger example, think should and we we something couple of aggressive the I is UniFi years. of share video next with much over be have video security very market are

have efficiency And so also the you could on short-term, cost some a products. have product but efficiency, in mature mix capture bring you down material margins that

So, remain should I steady. think long-term, margins relatively our peer

where to our goes shipping have logistics margins, into is we specifically, else that those improve efficiency. Now, everything

delivering We and channel to inefficient cost shipping. demand last the have on lot very and minute have been result, a we of had to as air product due meeting a excessive

from So, I see you think as margin to significant improvement that. to operations our continue are mature going

your conclude thank for And We participation. conference. this today’s you does

now may disconnect. You