STOCK TITAN

Ubiquiti Q1 FY2027 revenue climbs to $1.03B

A $1.00-per-share dividend is payable November 23 to holders of record November 16, as component costs and supply constraints may pressure margins.

Available on EDGAR Accepted by SEC EDGAR Learn about SEC filing dates
(High)

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

Form Type
8-K

Rhea-AI Filing Summary

Ubiquiti Inc. reported first-quarter fiscal 2027 revenue of $1,026.2 million, up 39.9% from the comparable prior-year period, with increases in both technology platforms. Enterprise Technology revenue was $941.3 million and Service Provider Technology revenue was $84.9 million. GAAP net income was $320.5 million, up 54.2%, while non-GAAP net income was $322.0 million, up 53.8%. Diluted EPS was $5.29 on a GAAP basis and $5.32 on a non-GAAP basis.

GAAP gross profit margin was 47.3%, up 1.3 percentage points year over year, as lower indirect costs were partly offset by higher component costs. The board declared a $1.00 per-share cash dividend, payable November 23, 2026, to shareholders of record at the close of business November 16, 2026. Ubiquiti said component costs may continue to rise and availability may remain constrained, potentially pressuring near-term gross margins and limiting its ability to meet customer demand. Its non-GAAP measures exclude share-based compensation expense and the tax effect of adjustments.

2 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

0 major · 0 points

How the balance works

Positive

  • Moderate pointRevenue reached $1,026.2 million, up 39.9% year over year.
  • Moderate pointGAAP net income increased 54.2% from the comparable prior-year period.

Negative

  • None.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Revenue $1,026.2 million First quarter fiscal 2027; up 39.9% from the comparable prior-year period
GAAP net income $320.5 million First quarter fiscal 2027; up 54.2% from the comparable prior-year period
GAAP diluted EPS $5.29 First quarter fiscal 2027; up 54.2% from the comparable prior-year period
Non-GAAP diluted EPS $5.32 First quarter fiscal 2027; up 53.8% from the comparable prior-year period
GAAP gross profit margin 47.3% First quarter fiscal 2027; up 1.3 percentage points from the comparable prior-year period
Cash dividend $1.00 per share Payable November 23, 2026, to shareholders of record November 16, 2026
GAAP gross profit margin financial
"GAAP gross profit margin of 47.3%"
Non-GAAP diluted EPS financial
"Non-GAAP diluted EPS"
Non-GAAP diluted EPS (Earnings Per Share) is a measure of a company's profit allocated to each share of stock, calculated using adjusted earnings that exclude certain items like one-time expenses or gains. It provides a view of ongoing performance by removing irregular or non-recurring factors. Investors use it to better understand the company's core profitability and compare performance across different periods or companies.
share-based compensation financial
"Share-based compensation expense"
Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.
ASC 740 financial
"applying the principles of ASC 740"
ASC 740 is the U.S. accounting rule that tells companies how to record and report income taxes on their financial statements, including current taxes owed and future tax effects (deferred taxes). Think of it as a household’s tax worksheet that shows what you owe now versus what you’ll owe or save later; for investors it matters because tax balances and estimates affect reported profits, cash flow expectations, and the risk of adjustments from tax audits.
weighted-average shares financial
"Weighted-average shares used in Non-GAAP diluted EPS"
Weighted-average shares is the average number of a company’s outstanding shares calculated over a reporting period, adjusted for any stock issuances, repurchases, or splits during that time. Investors use it to fairly compare earnings per share and other per-share metrics, because it smooths out changes in the share count the way an average speed reflects trips of different lengths rather than a single snapshot.
Revenue $1,026.2 million Increased 39.9% from the comparable prior-year period
GAAP net income $320.5 million Increased 54.2% from the comparable prior-year period
Non-GAAP net income $322.0 million Increased 53.8% from the comparable prior-year period
GAAP diluted EPS $5.29 Increased 54.2% from the comparable prior-year period
Non-GAAP diluted EPS $5.32 Increased 53.8% from the comparable prior-year period
GAAP gross profit margin 47.3% Increased 1.3 percentage points from the comparable prior-year period

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did UI report in first-quarter fiscal 2027?

UI reported $1,026.2 million in first-quarter fiscal 2027 revenue, up 39.9% from the comparable prior-year period. Enterprise Technology revenue was $941.3 million and Service Provider Technology revenue was $84.9 million. Ubiquiti attributed the increase to revenue growth in both technology platforms.

What dividend did UI declare, and when is it payable?

Ubiquiti declared a $1.00 per-share cash dividend, payable November 23, 2026, to shareholders of record at the close of business November 16, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
0001511737FALSE00015117372026-11-062026-11-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 6, 2026
UBIQUITI INC.
(Exact name of registrant as specified in its charter)
Delaware001-3530032-0097377
(State or jurisdiction of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
685 Third Avenue, 27th Floor
New York, New York 10017
(Address of principal executive offices, including zip code)
(646) 780-7958
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareUINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐






Item 2.02Results of Operations and Financial Condition.

On November 6, 2026, Ubiquiti Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1.

The Company hereby furnishes the information relating to its financial results for the fiscal quarter ended September 30, 2026 set forth in the press release issued on November 6, 2026 and which is incorporated herein by reference. This information is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), in each case, whether made before or after the date hereof, regardless of any general incorporation language in such filing. Other documents filed with the Securities and Exchange Commission (the “SEC”) shall not incorporate this information by reference, except as otherwise expressly stated in such filing.

Item 9.01Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberDescription
99.1
Press release of Ubiquiti Inc. dated November 6, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall Exhibit 99.1 be deemed incorporated by reference into any filing of the Company under the Securities Act, in each case, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as expressly set forth in such filing.

Forward Looking Statements

Certain statements in this Current Report on Form 8-K are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Statements other than statements of historical fact including words such as “look”, “will”, “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “consider” and “plan” and statements in the future tense are forward looking statements. The statements in this Current Report on Form 8-K that could be deemed forward-looking statements include the statement regarding our intention to pay quarterly cash dividends, any statement regarding the cost and availability of components, any statements or assumptions underlying the foregoing, and any statement regarding future events and the future financial performance of Ubiquiti Inc. that involves risks or uncertainties.

Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not limited to, the impact of U.S. tariffs on our operations and financial results; the impact of public health problems on results; fluctuations in our operating results; varying demand for our products due to the financial and operating condition of our distributors and their customers, and our distributors’ inventory management practices; political and economic conditions and volatility affecting the stability of business environments, economic growth, currency values, commodity prices and other factors that may influence the ultimate demand for our products in particular geographies or globally; impact of counterfeiting and our ability to contain such impact; our reliance on a limited number of distributors; inability of our contract manufacturers and suppliers to meet our demand; our dependence on chipset suppliers for chipsets without a short-term alternative; as we move into new markets, competition from certain of our current or potential competitors who may be more established in such markets; our ability to keep pace with technological and market developments; success and timing of new product introductions by us and the performance of our products generally; our ability to effectively manage the significant increase in our transactional sales volumes; we may become subject to warranty claims, product liability and product recalls; that a majority of our sales are into countries outside the United States and we are subject to numerous U.S. export control and economic sanctions laws; costs related to responding to government inquiries related to regulatory compliance; our reliance on certain key members of our management team, including our founder and chief executive officer, Robert J. Pera; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; whether the final determination of our income tax liability may be materially different from our income tax provisions; the impact of any intellectual property litigation and claims for indemnification; litigation related to U.S. securities laws; and social, economic and political conditions in the United States and abroad, including the impact of the military conflict between Russia and Ukraine and the tension between China and



Taiwan. We discuss these risks in greater detail under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2026, and subsequent filings with the SEC, which are available at the SEC’s website at www.sec.gov. Copies may also be obtained by contacting the Ubiquiti Inc. Investor Relations Department, by email at IR@ui.com or by visiting the Investor Relations section of the Ubiquiti Inc. website, https://ir.ui.com/. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. Except as required by law, Ubiquiti Inc. undertakes no obligation to update information contained herein. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
UBIQUITI INC.
November 6, 2026By:/s/ Robert J. Pera
Name:Robert J. Pera
Title:Chief Executive Officer



EXHIBIT INDEX
 
Exhibit Number
Description
99.1
Press release of Ubiquiti Inc. dated November 6, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall Exhibit 99.1 be deemed incorporated by reference into any filing of the Company under the Securities Act, in each case, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as expressly set forth in such filing.



Exhibit 99.1
 
ubntlogo_jpg.jpg

UBIQUITI INC. REPORTS FIRST QUARTER FISCAL 2027 FINANCIAL RESULTS
~ Record Revenues of $1,026.2 million ~
~ GAAP Diluted Earnings Per Share of $5.29 ~

New York, NY - November 6, 2026 - Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the first quarter ended September 30, 2026.

First Quarter Fiscal 2027 Financial Summary
•Revenues of $1,026.2 million
•GAAP diluted EPS of $5.29
•Non-GAAP diluted EPS of $5.32

Additional Financial Highlight

•The Company's Board of Directors declared a $1.00 per share cash dividend payable on November 23, 2026, to shareholders of record at the close of business on November 16, 2026.

Financial Highlights ($ in millions, except per share data)
(Unaudited)
Income statement highlights1QF274QF261QF26
Revenues1,026.2937.3733.8
Enterprise Technology941.3868.3657.1
Service Provider Technology84.969.076.6
Gross profit485.3429.3337.4
Gross Profit Margin (%)47.3%45.8%46.0%
Total Operating Expenses93.989.375.7
Income from Operations391.5340.0261.7
GAAP Net Income320.5284.9207.9
GAAP EPS (diluted)5.294.703.43
Non-GAAP Net Income322.0286.5209.3
Non-GAAP EPS (diluted)5.324.733.46

Ubiquiti Inc.
Revenues by Product Type
($ In thousands)
(Unaudited)
Three Months Ended September 30,
20262025
Enterprise Technology$941,344 $657,147 
Service Provider Technology84,904 76,626 
Total revenues$1,026,248 $733,773 

Ubiquiti Inc.
Revenues by Geographical Area
($ In thousands)
(Unaudited)
Three Months Ended September 30,
20262025
North America$541,689 $382,824 
Europe, the Middle East and Africa378,134 263,120 
Asia Pacific67,103 53,124 
South America39,322 34,705 
Total revenues$1,026,248 $733,773 

Income Statement Items
Revenues
Revenues for the first quarter of fiscal 2027 were $1,026.2 million, representing an increase from the prior quarter of 9.5% and an increase from the comparable prior year period of 39.9%.
The growth in revenues over the prior quarter and the comparable prior year period was driven by an increase in revenue from both our Enterprise Technology and Service Provider Technology platforms.
Gross Profit Margin - Gross Profit as a percentage of Revenue
During the first quarter of fiscal 2027, GAAP gross profit was $485.3 million. GAAP gross profit margin of 47.3% increased by 1.5 percentage points as compared to the prior quarter GAAP gross profit margin of 45.8% and increased by 1.3 percentage points as compared to the comparable prior year period GAAP gross profit margin of 46.0%.
The increase in gross profit margin as compared to the prior quarter and the comparable prior year period was primarily driven by lower indirect costs, offset in part by higher component costs.

Since the fourth quarter of fiscal 2026, the Company has experienced an increase in certain component costs. Component costs may continue to rise, and availability may remain constrained. These factors may result in near-term pressure on our gross profit margins, particularly to the extent we are unable to offset higher component costs through pricing or other measures. In addition, ongoing supply constraints could limit our ability to meet customer demand and negatively impact our revenues and gross profit margins.




Research and Development
During the first quarter of fiscal 2027, research and development ("R&D") expenses were $53.2 million. This is consistent with the prior quarter's R&D expenses of $53.0 million and reflects an increase compared to the R&D expenses of $48.5 million in the comparable prior year period.
The increase in R&D expenses as compared to the comparable prior year period was primarily driven by higher software expenses, employee-related expenses and facility costs.

Sales, General and Administrative
The Company’s sales, general and administrative ("SG&A") expenses for the first quarter of fiscal 2027 were $40.6 million. This reflects an increase as compared to the SG&A expenses of $36.3 million in the prior quarter and an increase compared to the SG&A expenses of $27.1 million in the comparable prior year period.
The increase in SG&A costs as compared to the prior quarter was primarily attributable to higher professional fees and provision for credit losses on accounts receivable, offset in part by lower marketing expenses. The increase in SG&A as compared to the comparable prior year period was primarily driven by higher professional fees, credit card processing fees arising from incremental webstore sales, employee-related expenses, and provision for credit losses on accounts receivable.
Interest Income (Expense) and Other, net
During the first quarter of fiscal 2027, the Company reported interest income (expense) and other, net ("I&O") income of $6.2 million. This reflects an increase as compared to the I&O income of $3.1 million in the prior quarter. In the comparable prior year period, the Company had reported I&O expense of $3.2 million.

The increase in I&O income compared to the prior quarter was primarily driven by higher interest income on invested cash. The increase in I&O income as compared to the comparable prior year period was primarily attributable to higher interest income on invested cash and lower interest expense driven by a decrease in outstanding debt.
Net Income and Earnings Per Share
During the first quarter of fiscal 2027, GAAP net income was $320.5 million and non-GAAP net income was $322.0 million. This reflects an increase in GAAP net income and non-GAAP net income from the comparable prior year period by 54.2% and 53.8%, respectively. The primary factors contributing to this growth were higher revenues and increased gross profit. First quarter fiscal 2027 GAAP earnings per diluted share was $5.29 and non-GAAP earnings per diluted share was $5.32. Both measures increased from the comparable prior year period, with GAAP and non-GAAP earnings per diluted share increasing by 54.2% and 53.8%, respectively.
About Ubiquiti Inc.

Ubiquiti builds UniFi, a unified platform for networking, physical security, storage, and building technology that lets any organization run enterprise-grade infrastructure without licenses or subscriptions. By designing hardware and software as one coherent system, Ubiquiti has redefined what an IT company can be: a design house that ships complete, world-class infrastructure at a fraction of incumbent cost and eliminates the rent-extraction model that has defined enterprise technology for decades. Ubiquiti is headquartered in New York and serves organizations globally through its direct webstores and worldwide partner community.

Ubiquiti and the U logo are trademarks or registered trademarks of Ubiquiti and/or its affiliates in the United States and other countries. For more information, please visit www.ui.com.
Investor Relations Contact
Ubiquiti Inc.
Investor Relations
ir@ui.com

Ph. 1-646-780-7958
Safe Harbor for Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as "look", "will", "anticipate", "believe", "estimate", "expect", "forecast", "consider" and "plan" and statements in the future tense are forward looking statements. The statements in this press release that could be deemed forward-looking statements include the statement regarding our intention to pay quarterly cash dividends, any statement regarding the cost and availability of components, any statements or assumptions underlying the foregoing, and any statement regarding future events and the future financial performance of Ubiquiti Inc. that involves risks or uncertainties.

Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not limited to, the impact of U.S. tariffs on our operations and financial results; the impact of public health problems on results; fluctuations in our operating results; varying demand for our products due to the financial and operating condition of our distributors and their customers, and our distributors’ inventory management practices; political and economic conditions and volatility affecting the stability of business environments, economic growth, currency values, commodity prices and other factors that may influence the ultimate demand for our products in particular geographies or globally; impact of counterfeiting and our ability to contain such impact; our reliance on a limited number of distributors; inability of our contract manufacturers and suppliers to meet our demand; our dependence on chipset suppliers for chipsets without a short-term alternative; as we move into new markets, competition from certain of our current or potential competitors who may be more established in such markets; our ability to keep pace with technological and market developments; success and timing of new product introductions by us and the performance of our products generally; our ability to effectively manage the significant increase in our transactional sales volumes; we may become subject to warranty claims, product liability and product recalls; that a majority of our sales are into countries outside the United States and we are subject to numerous U.S. export control and economic sanctions laws; costs related to responding to government inquiries related to regulatory compliance; our reliance on certain key members of our management team, including our founder and chief executive officer, Robert J. Pera; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; whether the final determination of our income tax liability may be materially different from our income tax provisions; the impact of any intellectual property litigation and claims for indemnification; litigation related to U.S. securities laws; and social, economic and political conditions in the United States and abroad, including the impact of the military conflict between Russia and Ukraine and the tension between China and Taiwan. We discuss these risks in greater detail under the heading "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended June 30, 2026, and subsequent filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC’s website at www.sec.gov. Copies may also be obtained by contacting the Ubiquiti Inc. Investor Relations Department, by email at IR@ui.com or by visiting the Investor Relations section of the Ubiquiti Inc. website, https://ir.ui.com/.

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date made. Except as required by law, Ubiquiti Inc. undertakes no obligation to update information contained herein. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.
Ubiquiti Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data) (Unaudited)
Three Months Ended September 30,

20262025
Revenues$1,026,248 $733,773 
Cost of revenues540,900 396,364 
Gross profit485,348 337,409 
Operating expenses:
Research and development53,241 48,543 
Sales, general and administrative40,640 27,144 
Total operating expenses93,881 75,687 
Income from operations391,467 261,722 
Interest income (expense) and other, net6,162 (3,182)
Income before income taxes397,629 258,540 
Provision for income taxes77,166 50,664 
Net income$320,463 $207,876 
Net income per share of common stock:
Basic$5.29 $3.44 
Diluted$5.29 $3.43 
Weighted average shares used in computing net income per share of common stock:
Basic60,524 60,499 
Diluted60,564 60,559 
Ubiquiti Inc.
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30, 2026June 30, 2026September 30, 2025
Net Income$320,463 $284,902 $207,876 
Share-based compensation:
Cost of revenues81 76 70 
Research and development1,345 1,403 1,311 
Sales, general and administrative595 563 503 
Tax effect of Non-GAAP adjustment relating to Share-based compensation(482)(485)(450)
Non-GAAP net income$322,002 $286,459 $209,310 
Non-GAAP diluted EPS$5.32 $4.73 $3.46 
Shares outstanding (Diluted)60,564 60,575 60,559 
Weighted-average shares used in Non-GAAP diluted EPS60,564 60,575 60,559 
Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use non-GAAP measures of net income and earnings per diluted share that are adjusted to exclude certain costs, expenses and gains such as share-based compensation expense and the tax effects of these non-GAAP adjustments.

Reconciliations of the adjustments to GAAP results for the periods presented are provided above. In addition, an explanation of the ways in which management uses non-GAAP financial information to evaluate its business, the substance behind management’s decision to use this non-GAAP financial information, material limitations associated with the use of non-GAAP financial information, the manner in which management compensates for those limitations, and the substantive reasons management believes that this non-GAAP financial information provides useful information to investors is included under the paragraphs below.
Usefulness of Non-GAAP Financial Information to Investors
We believe that the presentation of non-GAAP net income and non-GAAP earnings per diluted share provides important supplemental information regarding non-cash expenses, significant items that we believe are important to understanding our financial and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods and by management and our board of directors to determine whether our operating performance has met specified targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per diluted share when evaluating operating performance because it believes that the exclusion of the items described below, for which the amounts or timing may vary significantly depending upon the Company’s activities and other factors, facilitates comparability of the Company’s operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results in the same way that management does and use this information in their assessment of our business and the valuation of our Company.

About our Non-GAAP Net Income and Non-GAAP Earnings per Diluted Share
We compute non-GAAP net income and non-GAAP earnings per diluted share by adjusting GAAP net income and GAAP earnings per diluted share to remove the impact of certain adjustments and the tax effect of those adjustments. Items excluded from net income are:

• Share-based compensation expense and
• Tax effect of non-GAAP adjustments, applying the principles of ASC 740.

These non-GAAP measures are not in accordance with, or an alternative to, GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results.

For more information on the non-GAAP adjustments, please see the table captioned "Reconciliation of GAAP Net Income to Non-GAAP Net Income" included in this press release.


1

Filing Exhibits & Attachments

4 documents

Keep reading