Ubiquiti(US:UI)2021-02-05 12:03Financial Performance - Total revenues increased by $171.2 million, or 56%, from $308.3 million in Q4 2019 to $479.4 million in Q4 2020[126] - Gross profit for Q4 2020 was $230.7 million, representing a gross margin of 48%, compared to $145.1 million and 47% in Q4 2019[124] - Net income for Q4 2020 was $159.7 million, or 33% of revenues, compared to $85.8 million, or 28% of revenues, in Q4 2019[124] - Total revenues increased by $321.4 million, or 51%, from $631.6 million in the six months ended December 31, 2019 to $953.0 million in the six months ended December 31, 2020[127] Operating Expenses - Operating expenses increased to $39.9 million in Q4 2020, accounting for 8% of revenues, up from $33.0 million and 11% in Q4 2019[124] - Research and development expenses were $28.9 million in Q4 2020, representing 6% of revenues, compared to $24.0 million and 8% in Q4 2019[124] - Sales, General and Administrative expenses increased by $2.0 million, or 22%, to $11.0 million in the three months ended December 31, 2020[149] - Research and Development expenses increased by $4.9 million, or 20%, to $28.9 million in the three months ended December 31, 2020[146] Revenue Breakdown - Sales to distributors accounted for 87% of total revenues during the six months ended December 31, 2020[115] - Service Provider Technology revenue increased by $52.2 million, or 53%, to $149.9 million in the three months ended December 31, 2020, and by $93.7 million, or 44%, to $307.3 million in the six months ended December 31, 2020[128] - Enterprise Technology revenue increased by $119.0 million, or 57%, to $329.6 million in the three months ended December 31, 2020, and by $227.7 million, or 54%, to $645.6 million in the six months ended December 31, 2020[130] - Revenues in North America increased by $63.5 million, or 49%, to $193.4 million in the three months ended December 31, 2020, and by $136.4 million, or 49%, to $414.3 million in the six months ended December 31, 2020[133] - Revenues in EMEA increased by $98.1 million, or 81%, to $218.8 million in the three months ended December 31, 2020, and by $151.5 million, or 61%, to $397.9 million in the six months ended December 31, 2020[135] Cash Flow and Financial Position - Cash and cash equivalents increased to $189.1 million as of December 31, 2020, from $142.6 million as of June 30, 2020[156] - Net cash provided by operating activities was $308.9 million for the six months ended December 31, 2020, compared to $243.3 million for the same period in 2019[157] - The company used $251.5 million in cash for financing activities during the six months ended December 31, 2020, including $152.6 million for stock repurchases and $50.6 million for dividends[162] - As of December 31, 2020, the company had total contractual obligations of $820.1 million, including $607.5 million in debt payment obligations and $43.3 million in operating leases[172] - Cash and cash equivalents amounted to $189.1 million as of December 31, 2020, an increase from $142.6 million as of June 30, 2020[180] Market and Economic Factors - The company has experienced supply chain disruptions due to COVID-19, impacting the ability to procure key components[111] - Tariffs on products imported from China range between 7.5% and 25%, affecting operating results and margins[118] - A 200-basis-point increase in interest rates would result in an incremental charge of approximately $12.2 million to income before income taxes over the next twelve months[181] - A 10% appreciation or depreciation in the value of the U.S. dollar relative to other currencies would result in a charge or benefit of approximately $2.2 million to income before income taxes[182] Future Outlook - The company expects continued investments in research and development to drive new product development and enhancements[121] - The company believes its existing cash and cash equivalents, along with cash provided by operations, will be sufficient to meet its working capital and capital expenditure needs for the next twelve months[165]