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Ubiquiti 8-K Report, Financial Results (May 10, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 10, 2024
Period End
May 10, 2024
Security
UI
In the record · 2016–202610-K1110-Q328-K77

UI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 77 current reports (8-K) between 2016 and 2026.

  1. Auditor change8-K · Dec ’16Dec ’16
  2. Leadership change8-K · Oct ’18Oct ’18
  3. Leadership change8-K · Dec ’20Dec ’20
  4. Material agreement8-K · Apr ’23Apr ’23

01—Abstract

Summary

Summary of the 8-K filed May 10, 2024. Cited figures are marked; the original filing is the authoritative source.

Ubiquiti Inc. reported results for its third quarter of fiscal 2024, ended March 31, 2024, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Revenues were $493.0 milliona, up from $465.0 million in the prior quarter and $457.8 million in the year-earlier quarter. Growth came from the Enterprise Technology platform, which reached $414.3 million, while Service Provider Technology fell to $78.7 million from $84.2 million a year earlier. GAAP net income was $76.3 million, or $1.26 per diluted share, and non-GAAP diluted EPS was $1.28.

Both GAAP and non-GAAP net income and EPS declined from the prior-year quarter. Profitability weakened. GAAP gross margin was 35.3%b, compared with 38.2% in the prior quarter and 41.2% in the prior-year quarter.

Management attributed the sequential decline mainly to incremental excess and obsolete inventory charges and higher warehouse-related operating expenses. Year-over-year, the decline was attributed mainly to excess and obsolete inventory charges, unfavorable product mix and higher shipping costs, partly offset by lower tariffs. Research and development expense rose to $42.5 millionc, and interest expense and other, net rose to $18.9 million, driven by higher interest rates.

For the nine months ended March 31, 2024, revenues were $1,421.0 milliond, compared with $1,449.4 million a year earlier, and GAAP net income was $246.2 million, compared with $304.0 million. The Board declared a cash dividend of $0.60 per share, payable May 28, 2024 to shareholders of record at the close of business on May 20, 2024. The filing states that the company intends to pay quarterly cash dividends.

02—Key points

Key Highlights

  1. Third quarter fiscal 2024 revenues of $493.0 million, up from $465.0 million in the prior quarter and $457.8 million in the prior-year quarter.
  2. Enterprise Technology revenue of $414.3 million rose from $373.6 million a year earlier, while Service Provider Technology revenue declined to $78.7 million from $84.2 million.
  3. GAAP gross margin of 35.3% compared with 38.2% in the prior quarter and 41.2% in the prior-year quarter, reflecting excess and obsolete inventory charges and other cost factors.
  4. GAAP net income of $76.3 million ($1.26 per diluted share) and non-GAAP net income of $77.6 million ($1.28 per diluted share), down 22.6% and 22.1%, respectively, from the prior-year quarter.
  5. Operating expenses increased, with R&D at $42.5 million (up from $38.2 million a year earlier) and SG&A at $20.4 million (up from $16.7 million).
  6. Interest expense and other, net increased to $18.9 million, driven by higher interest rates.
  7. The Board declared a $0.60 per share cash dividend payable May 28, 2024 to holders of record on May 20, 2024.

03—Questions

Frequently Asked Questions

  1. How did Ubiquiti perform in the third quarter of fiscal 2024?

    Revenues were $493.0 million, up from $465.0 million in the prior quarter and $457.8 million a year earlier. GAAP diluted EPS was $1.26 and non-GAAP diluted EPS was $1.28, compared with $1.63 GAAP and $1.65 non-GAAP in the prior-year quarter.

  2. Why did profitability decline?

    Gross margin fell to 35.3% from 38.2% in the prior quarter and 41.2% a year earlier. The company cited incremental excess and obsolete inventory charges, higher warehouse and shipping costs, and unfavorable product mix. Operating expenses and higher interest expense also contributed.

  3. Which business segment drove revenue growth?

    Enterprise Technology drove the year-over-year increase, with revenue of $414.3 million compared with $373.6 million a year earlier. Service Provider Technology revenue declined to $78.7 million from $84.2 million.

  4. What dividend did the Board declare?

    The Board declared a $0.60 per share cash dividend, payable May 28, 2024 to shareholders of record at the close of business on May 20, 2024. The filing states the company intends to pay quarterly cash dividends.

  5. How did year-to-date results compare with the prior year?

    For the nine months ended March 31, 2024, revenues were $1,421.0 million, compared with $1,449.4 million a year earlier. GAAP net income was $246.2 million, compared with $304.0 million, and GAAP diluted EPS was $4.07, compared with $5.03.

04—Continue

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