Revenue during the quarter surged 35.23 percent to $204.76 million from $151.42 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 48.01 percent. Total expenses were 63.42 percent of quarterly revenues, up from 60.48 percent for the same period last year. That has resulted in a contraction of 294 basis points in operating margin to 36.58 percent.

Operating income for the quarter was $74.90 million, compared with $59.84 million in the previous year period.

Qualcomm Atheros 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 substantial 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 the Ubiquiti Community; 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 economic and political conditions in the United States and abroad.

For the second-quarter, Ubiquiti Networks, Inc forecasts revenue to be in the range of $200 million to $210 million. The company expects diluted earnings per share to be in the range of $0.72 to $0.78 for the second-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.73 to $0.79 for the second-quarter.

Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 40 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 39 days for the same period last year.

Days inventory outstanding has decreased to 35 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 40 for the same period last year.