~ Record Revenues of $473.5 million
~
~ Record GAAP Earnings Per Share of $2.46
~
Ubiquiti Inc. (NYSE: UI) (“Ubiquiti” or the “Company”) today
announced financial results for the first quarter fiscal 2021,
ended September 30, 2020.
First Quarter Fiscal 2021
Summary
- Revenues of $473.5 million, increasing 46.5%
year-over-year
- GAAP diluted EPS of $2.46, increasing 72.0% year-over-year
- Non-GAAP diluted EPS of $2.47, increasing 71.5%
year-over-year
Additional Financial
Highlights
- Repurchased 602,003 shares of common stock at an average price
of $162.10 per share during the quarter and an additional 309,133
shares of common stock at an average price of $178.11 per share
subsequent to September 30, 2020.
- The Company’s Board of Directors declared a $0.40 per share
cash dividend payable on November 23, 2020 to shareholders of
record at the close of business on November 16, 2020.
Financial Highlights ($, in millions,
except per share data) (unaudited)
Income statement highlights
F1Q21
F4Q20
F1Q20
Revenues
473.5
315.5
323.3
Service Provider Technology
157.4
121.9
115.9
Enterprise Technology
316.1
193.6
207.4
Gross profit
228.1
152.1
151.4
Gross Profit (%)
48.2%
48.2%
46.8%
Total Operating Expenses
38.2
34.0
30.7
Income from Operations
189.9
118.1
120.7
GAAP Net Income
156.5
92.6
98.1
GAAP EPS (diluted)
2.46
1.45
1.43
Non-GAAP Net Income
157.1
93.2
98.7
Non-GAAP EPS (diluted)
2.47
1.46
1.44
Ubiquiti Inc.
Revenues by Product Type
(In thousands)
(Unaudited)
Three Months Ended September
30,
2020
2019
Service Provider Technology
$
157,461
$
115,926
Enterprise Technology
316,072
207,351
Total revenues
$
473,533
$
323,277
Ubiquiti Inc.
Revenues by Geographical Area
(In thousands)
(Unaudited)
Three Months Ended September
30,
2020
2019
North America
$
220,880
$
147,951
Europe, the Middle East and Africa
179,180
125,841
Asia Pacific
41,945
29,716
South America
31,528
19,769
Total revenues
$
473,533
$
323,277
Income Statement Items
Revenues
Revenues for the first quarter fiscal 2021 were $473.5 million,
representing an increase from the comparable prior year period of
46.5% and an increase from the prior quarter of 50.1%. The
sequential increase in revenue was primarily due to an increase in
our direct to consumer sales through our webstores as well as an
increase in sales to our distributors. Our revenues continue to be
significantly influenced by distributor order patterns as well as
inventory availability.
Gross Margins
First quarter fiscal 2021 gross profit was $228.1 million. GAAP
gross margin of 48.2% increased 1.4% versus the comparable
prior-year period of 46.8% and remained consistent with the prior
quarter.
The increase in GAAP gross margin for the first quarter fiscal
2021 as compared to comparable prior year period was primarily
driven by favorable changes in product mix, partially offset by
higher tariffs, shipping costs and inventory reserves.
Research and Development
During the first quarter fiscal 2021, research and development
(“R&D”) expenses were $25.8 million. This reflects an increase
as compared to both the R&D expenses of $20.3 million in the
comparable prior year period and $23.4 million in the prior
quarter. The increase in R&D expenses for the first quarter
fiscal 2021 as compared to the comparable prior year period and the
prior quarter were both primarily driven by higher employee-related
expenses and development activities.
Sales, General and Administrative
The Company’s sales, general and administrative (“SG&A”)
expenses for the first quarter fiscal 2021 were $12.4 million. This
reflects an increase as compared to the SG&A expenses of $10.5
million in both the comparable prior year period and in the prior
quarter. The increase in SG&A costs as compared to the
comparable prior year period was primarily related to higher
depreciation expense and higher professional and service fees,
partially offset by lower employee related costs, marketing
expenses and bad debt expense. The increase in SG&A costs as
compared to the prior quarter was primarily driven by higher
professional fees and service fees.
Net Income and Earnings Per Share
During the first quarter fiscal 2021, GAAP net income was $156.5
million and non-GAAP net income was $157.1 million. This reflects
an increase in GAAP net income and non-GAAP net income from the
comparable prior year period by 59.5% and 59.2%, respectively,
primarily driven by an increase in revenue and higher gross
margin.
During the first quarter fiscal 2021 GAAP earnings per diluted
share was $2.46 and non-GAAP earnings per diluted share was $2.47.
This reflects a 72.0% increase in GAAP earnings per share and a
71.5% increase in non-GAAP diluted earnings per share from the
comparable prior-year period. Both GAAP and non-GAAP earnings per
share benefited from higher net income and a reduction in GAAP and
non-GAAP diluted shares outstanding.
COVID-19
In the first quarter of fiscal year 2021, we continued to
experience a disruption in our supply chain as a result of the
COVID-19 pandemic. This disruption impacted our suppliers' ability
to manufacture or provide key components and services and as a
result we have incurred, and we continue to incur, additional costs
to expedite deliveries of components and services. While our
ability to procure components and services has improved during the
quarter, the disruptions in our supply chain have not been fully
remediated and the effects, if any, of the COVID-19 pandemic may
not be fully reflected in the Company's financial results until
future periods.
About Ubiquiti Inc.
Ubiquiti Inc. is focused on democratizing network technology on
a global scale — aggregate shipments of over 108 million devices
play a key role in creating networking infrastructure in over 200
countries and territories around the world. Our professional
networking products are powered by our UNMS and UniFi software
platforms to provide high-capacity distributed Internet access and
unified information technology management, respectively.
Ubiquiti and the U logo are trademarks or registered trademarks
of Ubiquiti and/or its affiliates in the United States and other
countries. For more information, please visit www.ui.com
Safe Harbor for Forward Looking
Statements
Certain statements in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements other than statements of historical
fact including words such as “look”, “will”, “anticipate”,
“believe”, “estimate”, “expect”, “forecast”, “consider” and “plan”
and statements in the future tense are forward looking statements.
The statements in this press release that could be deemed
forward-looking statements include statements regarding the impact
of COVID-19 and our intentions to pay quarterly cash dividends and
any statements or assumptions underlying any of the foregoing.
Forward-looking statements are subject to certain risks and
uncertainties that could cause our actual future results to differ
materially or cause a material adverse impact on our results.
Potential risks and uncertainties include, but are not limited to,
the impact of public health problems, such as COVID-19, and U.S.
tariffs on results; fluctuations in our operating results; varying
demand for our products due to the financial and operating
condition of our distributors and their customers, and our
distributors’ inventory management practices; political and
economic conditions and volatility affecting the stability of
business environments, economic growth, currency values, commodity
prices and other factors that may influence the ultimate demand for
our products in particular geographies or globally; impact of
counterfeiting and our ability to contain such impact; our reliance
on a limited number of distributors; inability of our contract
manufacturers and suppliers to meet our demand; our dependence on
chipset suppliers for chipsets without a short-term alternative; as
we move into new markets competition from certain of our current or
potential competitors who may be more established in such markets;
our ability to keep pace with technological and market
developments; success and timing of new product introductions by us
and the performance of our products generally; our ability to
effectively manage the significant increase in our transactional
sales volumes; we may become subject to warranty claims, product
liability and product recalls; that a substantial majority of our
sales are into countries outside the United States and we are
subject to numerous U.S. export control and economic sanctions
laws; costs related to responding to government inquiries related
to regulatory compliance; our reliance on certain key members of
our management team, including our founder and chief executive
officer, Robert J. Pera; adverse tax-related matters such as tax
audits, changes in our effective tax rate or new tax legislative
proposals; whether the final determination of our income tax
liability may be materially different from our income tax
provisions; the impact of any intellectual property litigation and
claims for indemnification; litigation related to U.S. securities
laws; and economic and political conditions in the United States
and abroad. We discuss these risks in greater detail under the
heading “Risk Factors” and elsewhere in our Annual Report on Form
10-K for the year ended June 30, 2020, and subsequent filings filed
with the U.S. Securities and Exchange Commission (the “SEC”), which
are available at the SEC’s website at www.sec.gov. Copies may also
be obtained by contacting the Ubiquiti Inc. Investor Relations
Department, by email at IR@ui.com or by visiting the Investor
Relations section of the Ubiquiti Inc. website,
http://ir.ui.com.
Given these uncertainties, you should not place undue reliance
on these forward-looking statements. Also, forward-looking
statements represent our management’s beliefs and assumptions only
as of the date made. Except as required by law, Ubiquiti Inc.
undertakes no obligation to update information contained herein.
You should review our SEC filings carefully and with the
understanding that our actual future results may be materially
different from what we expect.
Ubiquiti Inc.
Condensed Consolidated Statements of
Operations
and Comprehensive Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended September
30,
2020
2019
Revenues
$
473,533
$
323,277
Cost of revenues
245,417
171,886
Gross profit
$
228,116
$
151,391
Operating expenses:
Research and development
25,813
20,252
Sales, general and administrative
12,350
10,450
Total operating expenses
38,163
30,702
Income from operations
189,953
120,689
Interest expense and other, net
(3,917)
(4,653)
Income before income taxes
186,036
116,036
Provision for income taxes
29,527
17,890
Net income
$
156,509
$
98,146
Net income per share of common stock:
Basic
$
2.46
$
1.44
Diluted
$
2.46
$
1.43
Weighted average shares used in computing
net income per share of common stock:
Basic
63,612
68,390
Diluted
63,673
68,484
Ubiquiti Inc.
Reconciliation of GAAP Net Income to
Non-GAAP Net Income
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
September 30, 2020
June 30, 2020
September 30, 2019
Net Income
$
156,509
$
92,618
$
98,146
Stock-based compensation:
Cost of revenues
28
27
32
Research and development
510
515
481
Sales, general and administrative
202
202
176
Tax effect of Non-GAAP adjustments
(174
)
(176
)
(162
)
Non-GAAP net income
$
157,075
$
93,186
$
98,673
Non-GAAP diluted EPS
$
2.47
$
1.46
$
1.44
Weighted-average shares used in Non-GAAP
diluted EPS
63,673
63,756
68,484
Use of Non-GAAP Financial
Information
To supplement our condensed consolidated financial results
prepared under generally accepted accounting principles, or GAAP,
we use non-GAAP measures of net income and earnings per diluted
share that are adjusted to exclude certain costs, expenses and
gains such as stock-based compensation expense and the tax effects
of these non-GAAP adjustments.
Reconciliations of the adjustments to GAAP results for the
periods presented are provided above. In addition, an explanation
of the ways in which management uses non-GAAP financial information
to evaluate its business, the substance behind management’s
decision to use this non-GAAP financial information, material
limitations associated with the use of non-GAAP financial
information, the manner in which management compensates for those
limitations, and the substantive reasons management believes that
this non-GAAP financial information provides useful information to
investors is included under the paragraphs below.
Usefulness of Non-GAAP Financial
Information to Investors
We believe that the presentation of non-GAAP net income and
non-GAAP earnings per diluted share provides important supplemental
information regarding non-cash expenses, significant items that we
believe are important to understanding our financial, and business
trends relating to our financial condition and results of
operations. Non-GAAP net income and non-GAAP earnings per diluted
share are among the primary indicators used by management as a
basis for planning and forecasting future periods and by management
and our board of directors to determine whether our operating
performance has met specified targets and thresholds. Management
uses non-GAAP net income and non-GAAP earnings per diluted share
when evaluating operating performance because it believes that the
exclusion of the items described below, for which the amounts or
timing may vary significantly depending upon the Company’s
activities and other factors, facilitates comparability of the
Company’s operating performance from period to period. We have
chosen to provide this information to investors so they can analyze
our operating results in the same way that management does and use
this information in their assessment of our business and the
valuation of our Company.
About our Non-GAAP Net Income and
Non-GAAP Earnings per Diluted Share
We compute non-GAAP net income and non-GAAP earnings per diluted
share by adjusting GAAP net income and GAAP earnings per diluted
share to remove the impact of certain adjustments and the tax
effect of those adjustments. Items excluded from net income
are:
• Stock-based compensation expense
• Tax effect of non-GAAP adjustments, applying the principles of
ASC 740
These non-GAAP measures are not in accordance with, or an
alternative to, GAAP and may be materially different from other
non-GAAP measures, including similarly titled non-GAAP measures
used by other companies. The presentation of this additional
information should not be considered in isolation from, as a
substitute for, or superior to, net income or earnings per diluted
share prepared in accordance with GAAP. Non-GAAP financial measures
have limitations in that they do not reflect certain items that may
have a material impact upon our reported financial results.
For more information on the non-GAAP adjustments, please see the
table captioned “Reconciliation of GAAP Net Income to non-GAAP Net
Income” included in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201106005109/en/
Investor Relations Contact
Ubiquiti Inc. Investor Relations ir@ui.com Ph. 1-646-780-7958
United Industrial (NYSE:UIC)
Historical Stock Chart
From May 2024 to Jun 2024
United Industrial (NYSE:UIC)
Historical Stock Chart
From Jun 2023 to Jun 2024