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    Erik Suppiger

    Research Analyst at JMP Securities

    Erik Suppiger's questions to Ubiquiti (UI) leadership

    Erik Suppiger's questions to Ubiquiti (UI) leadership • Q4 2018

    Question

    Erik Suppiger of JMP Securities asked about the company's plans regarding potential tariffs and whether they would raise prices. He also inquired about inventory, specifically the percentage of U.S. shipments from the new warehouse and if finished goods inventory would continue to grow.

    Answer

    Robert Pera, Founder, CEO and Chairman, stated that a decent percentage of U.S. revenue now flows through the domestic inventory center. He emphasized that his primary focus is meeting demand and resolving chronic stock-outs, which will dictate business decisions rather than a specific inventory level on the balance sheet.

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    Erik Suppiger's questions to Ubiquiti (UI) leadership • Q3 2018

    Question

    Erik L. Suppiger asked for an update on the company's goals for its aggressive share buyback program and how it measures the return on investment for these repurchases.

    Answer

    Robert J. Pera, Founder, CEO and Chairman, stated the goal is to use capital efficiently, noting that past buybacks have yielded a better return than holding cash. He explained that while acquisitions are considered, the company's unique culture makes organic growth preferable. Therefore, using cash to retire undervalued shares and improve future EPS is an easy decision.

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    Erik Suppiger's questions to Ubiquiti (UI) leadership • Q1 2018

    Question

    Erik Suppiger asked about the flat revenue outlook for the December quarter, which typically sees a seasonal uptick, and inquired about the progress of migrating distributors to new warehouses and adjusting their inventory levels.

    Answer

    Robert Pera (Chairman and CEO) stated that quarter-to-quarter variations are not a good reflection of long-term objectives and announced the company would stop giving quarterly guidance next fiscal year. He emphasized that operational and supply chain execution is the company's weakest area and a top priority for improvement, which currently causes a mismatch between quarterly results and true business demand.

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