A comment on UBNT

They were growing like mad until the third quarter of 2013, and then they just stopped!!! Why? I don’t know, but the last seven quarters are flat. Take the time to look at them. And whether they were up to analysts’ expectations is irrelevant, this last quarter’s revenues were down sequentially and from year before. In fact they are the lowest they’ve been in six quarters.

I sold my UBNT as well. But I think one needs to look at their 2 business lines separately. Their Enterprise business is still growing revenue at something like 50% while their Service Provider business is declining. Their SP business is larger. One question from the prior quarter was if their SP business would start growing again after the launch of several new products. So far not. The next question: at what point does the Enterprise business get large enough so we can value the company’s growth on that business alone?

Chris

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