Ubiquiti Networks should remain frugal and disruptive, but investors may be on a roller coaster.
Ubiquiti posted solid top-line growth in the second quarter, albeit slightly below our expectations, due to more muted growth in its enterprise segment. The company’s gross margin also dropped below our forecast as a result of charges related to weak sales of its FrontRow product, which apparently had slow sales during the holiday season. More importantly, the company conceded that 5G fixed wireless solutions from traditional telcos, such as AT&T and Verizon, could have an impact on its serv...
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