Ubiquiti Networks Inc. (UBNT): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Ubiquiti Networks is a leading provider of communication networks, telecom services and support solutions. We have initiated our coverage on Ubiquiti with an Outperform recommendation. The company reported strong third quarter results with earnings up 114.2% and revenue up 78.2% year over year. Improved demand for 4G/LTE networks and mobile broadband services has been driving growth for this company this year. Recently, the company reported revenue growth across all operating segments. In addition, Ubiquiti Networks completed some strategic acquisitions in the TV and media segment, striving to enhance segmental performance.


Overview:

Headquartered in San Jose, CA, Ubiquiti Networks, Inc., along with its subsidiaries, offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service provider product platforms provide carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing while enterprise product platforms offer wireless LAN infrastructure, video surveillance products and machine-to-machine communication components. The company was formerly known as Pera Networks, Inc. and changed its name to Ubiquiti Networks, Inc. in 2005.

Ubiquiti Networks offers high performance radios, antennas, software, communications protocols and management tools that are designed to deliver carrier and enterprise class wireless broadband access and other services primarily in the unlicensed RF spectrum.

The company offers various technology platforms, including airMAX, which includes protocols that contain technologies for minimizing signal noise EdgeMAX, a disruptive price-performance software and systems routing platform and airFiber, a 24 GHz point-to-point radio system. UniFi, an enterprise Wi-Fi System that comprises Wi-Fi certified hardware with software based management controller AirCam H.264 megapixel IP cameras airVision, a management controller software that is used to manage multiple airCam H.264 IP cameras as well as digital video recorder devices and mFi, which comprises hardware sensors, power devices, and management software that allows devices to be monitored and controlled remotely through Wi-Fi.

Ubiquiti Networks markets and sells high volumes of carrier and enterprise-class communications platforms through a differentiated business model. Its business model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals, referred to as the Ubiquiti Community.

Ubiquiti Networks classifies its revenues into three product categories: systems, embedded radios and antennas/other.


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