Ubiquiti Networks Reports Q4 Profit, Outlook Strong; Stock Surges - Update

(RTTNews) - Communications technology company Ubiquiti Networks Inc. (UBNT), Thursday reported a modest increase in fourth-quarter profit, due mainly on higher revenues, largely offset by reduced margins. Nonetheless, results for the quarter topped Wall Street estimates.

The company provided a strong outlook for the first quarter, sending its shares soaring 22.6 percent to a new high for the year, in after-hours trade on the Nasdaq.

"Finishing fiscal 2013 with record quarterly revenue and earnings demonstrates our ability to quickly overcome challenges. Now we are turning our full focus to growth," said CEO Robert Pera. "Our business model, innovative technology and user community are continuing to disrupt incumbents in the networking market."

Ubiquiti offers communications networking products in markets such as outdoor wireless, enterprise WLAN, video surveillance, and wireless backhaul.

The San Jose, California-based company reported fourth-quarter net income of $28.8 million or $0.32 per share, compared with $28.5 million or $0.30 per share last year.

Excluding items, adjusted earnings for the quarter were $29.5 million or $0.33 per share, compared with $27.9 million or $0.30 per share a year ago. On average, nine analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

Income from operations dropped by about $1 million to $33 million, but was offset by a decrease in income tax expense of $4 million from $5.4 million a year ago.

Revenues for the quarter grew 22 percent to $101 million from $95 million in the prior year, topping analysts' expectations of $93.28 million.

The company's leading edge platform, airMAX, saw strong growth and WLAN business had some traction.

For the first quarter, Ubiquiti expect net earnings of $0.37 to $0.40 per share, adjusted earnings of $0.38 to $0.41 per share, and revenues of $116 million to $122 million. Analysts currently expect earnings of $0.27 per share on revenues of $95.57 million for the quarter.

The company's stock closed Thursday at $21.20, up $0.63 or 3.06%, on a volume of 0.47 million shares. In after hours, the stock gained $4.80 or 22.64%, at $26.00. In the past year, the stock has traded in a range of $7.80 - $21.96.