Ubiquiti Networks Q3 Results Tops Estimates, Guides Q4 In Line

(RTTNews) - Network gear maker Ubiquiti Networks, Inc. (UBNT) reported Thursday a profit for the third quarter that more than doubled from last year, boosted by lower expenses and strong double-digit revenue growth.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue guidance for the fourth quarter, in line with Street view.

"The third quarter was another record quarter for Ubiquiti. We executed on accelerating our R&D and marketing efforts, while maintaining record growth and profitability. Ubiquiti is highly proficient at translating R&D into future revenue and we will continue to make investments that will grow and diversify our platform offerings," CFO Craig Foster said in a statement.

The San Jose, California-based company reported net income of $45.20 million or $0.50 per share for the third quarter, higher than $20.67 million or $0.23 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $0.50 per share, compared to last year's $0.24 per share. On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged 78 percent to $148.33 million from $83.16 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $141.92 million.

Service provider technology revenues surged 60 percent to $129.99 million, and enterprise technology revenue more than tripled to $27.34 million from the year-ago quarter.

Operating expenses as a percentage of total revenues contracted 400 basis points to 10.4 percent from last year.

Average days sales outstanding or DSO in accounts receivable for the quarter was 30 days, compared to 42 days in the prior-year quarter.

Looking ahead to the fourth quarter, Ubiquiti Networks forecasts adjusted earnings in a range of $0.48 to $0.52 per share, on projected revenues between $147 million and $153 million. Street is currently looking for earnings of $0.50 per share for the quarter on revenues of $147.70 million.

"We continue to focus investment into R&D to accelerate the vision for our worldwide network of operators and systems integrators. We will introduce significant new technology critical to this long-term vision in the second half of this calendar year," Founder and CEO RobertPera stated.

UBNT closed Thursday's regular trading session at $41.37, up $0.51 or 1.25% on a volume of 2.01 million shares. However, the stock lost $3.57 or 8.63% in after-hours trading.