Left Lets Loose, Leaves Ubiquiti Investor Day Convinced 'Company Is Committing Fraud'

Heading into Tuesday’s Investor Day, Citron’s Andrew Left had hoped to settle questions about Ubiquiti Networks Inc UBNT’s financials. Instead, he left the conference call with greater conviction in the firm’s alleged fraud.

“Anyone who listens to this call knows that they will soon be labeled as evidence,” Left told Benzinga.

In a short report issued last week, Left expressed skepticism toward Ubiquiti’s cash balances justified by their generation of relatively low overseas interest and their failure to correspond with margins growth. He was also concerned with the firm’s management structure, implying that it ought to hire an experienced chief financial officer and expand its board of directors.

Additionally, he raised flags on Ubiquiti’s “abrupt” and inexplicable departure from its San Jose headquarters; turnover in its audit committee and financial leadership; and cash location.

Ubiquiti CEO Robert Pera had responded to the initial report by alleging stock manipulation.

Citron Reports on $UBNT. Believe total FRAUD. All claims supported by fact. https://t.co/Fn9MwJO3Xn. Not seen anything like this in YEARS

— Citron Research (@CitronResearch) September 18, 2017

I am consumed with product development and don't have time to entertain accusations of stock manipulators. But, will take questions here

— Robert J Pera (@RobertPera) September 18, 2017

But Left stood by his call.

“This company is committing fraud 100 percent,” he said. “Sue me, call me names, I don’t care. It is what it is.”

At time of publication, shares of Ubiquiti were down 3.42 percent at $53.50.