Added Mr. Pera: "The Ubiquiti brand is dominant in our markets and demand for our technology is stronger than ever. This dominance has led to an unfortunate side effect whereby a few previously terminated distributors setup counterfeit AirMax manufacturing operations. Although they have impacted our sales channel and caused some marketplace confusion, we have made substantial and tangible progress in diminishing their activities through a comprehensive legal strategy that has resulted in imprisonment, injunctions, and asset freezes of the counterfeiters. In addition, Ubiquiti has implemented sophisticated anti-counterfeit manufacturing processes to substantially protect all of our new platforms and new AirMax products against any future counterfeit attempts."
Share Repurchase Program
Ubiquiti today announced that its Board of Directors has authorized the company to repurchase as much as $100 million of Company common stock. The Company is authorized to repurchase shares of its outstanding common stock on the open market or in privately negotiated transactions. The share repurchase program will be funded from existing cash on hand and from the proceeds related to amended term loan and revolving credit line agreements. We expect the share repurchase program will commence Monday, August 13, 2012.
Business OutlookUbiquiti currently believes the demand environment in its end markets supports the following forecast for the Company's fiscal first quarter ending September 30, 2012:
- Revenues of $62 million to $70 million
- GAAP Diluted EPS of $0.14 to $0.17
- Non-GAAP Diluted EPS of $0.14 to $0.17
- We believe that the amount of counterfeited goods, combined with the impact it has on our distributor's inventory and the purchasing patterns of our customers, will impact our business outlook for the next two fiscal quarters.
- Ubiquiti has taken comprehensive legal actions to stop the counterfeiters and minimize the impact of their activities.
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