In addition, reference will be made to non-GAAP financial measures. Information regarding the reconciliation of non-GAAP and GAAP measures can be found in the press release that was issued this afternoon on our website at the IR section at www.ubnt.com.Now, let me turn the call over to Robert Pera, Ubiquiti Founder. Robert? Robert J. Pera Hello. Thanks for joining the call. John Ritchie will breakdown the earnings results for the quarter and fiscal year. Before that, I want to give my thoughts on how the company is positioned for the future. Unlike traditional type companies who compete in known markets with sales centric business models, Ubiquiti is powered by a hyper efficiency model which allows us to profitably enter underserved markets; something traditional technology companies have difficult achieving. As a nucleus of our model is dedication to the development of powerful communication software which we provide at no cost as well as the commitment to providing transparency between our engineering team and technology user community also at no additional cost. When paired with disrupted cost performance hardware and a focus on optimizing user experience, explosive customer demand can be realized without the need for traditional SG&A expenses. In the case of AirMax, our broadband outdoor wireless internet distribution platform demand has skyrocketed and hardware sales have grown dramatically even in the presence of incoming competition. This is a credit to the inherent defensibility of our software technology and our ownership of the end user community relationship. It is the same pervasive customer demand and market dominance which I believe has driven a group of terminated ex-distributors to such expense as to steal our intellectual property and set up counterfeit operations of our AirMax products. Although they have impacted our AirMax sales and have created confusion in some markets, we have been relentless in pursuing them to a comprehensive global litigation strategy.
Last month, we received a US Court judgment issuing an injunction against the group leader as well as a freeze of his assets. Soon after, we received an additional injunction against his South American subsidiary from the Argentina Court.Last week, his partner in China was put back in prison where he awaits criminal trial. Along with our legal initiatives, we’ve also implemented sophisticated anti- counterfeit technology across all Ubiquiti product manufacturing to make it significantly more difficult to counterfeit our new platforms and new AirMax products. Unfortunately, neither of the negative impact of the counterfeiters nor the positive impact of our legal victories against them and our anti-counterfeit technology implementation can be reflected real time in our short-term sales performance. However, we believe our recent progress in minimizing their operations will be positively reflected in our long-term sales as AirMax demand today is stronger than ever. While AirMax Networks continue to flourish, we have been building equally impressive technology platforms in adjacent markets. All of these new initiatives follow the same hyper efficiency model and business strategy. This physically powerful software technology at no cost, transparency between our engineers and our user community and disruptive hardware offerings focused on optimizing user experience. The new technology platforms cover new opportunities including scalable wireless land systems, video surveillance, microwave backhauls and machine-to-machine networking. Our most mature new platform UniFi has been incredibly successful and is now following a rapid market adoption similar that of AirMax. At the same time, Ubiquiti has been committed to building out legal and operational infrastructure that will be critical for our long-term growth. In March, we hired a new general counsel who has been building our legal teams in both the US and China, two among other things protects our brand name and strengthen our worldwide intellectual property portfolio. In May, we hired a new VP of Operations who has helped to further reduce order lead times and has started implementing a plan for an inventory facility in Asia.
Since Ubiquiti's humble beginning from my apartment in 2005 through its first year and now achieving over $100 million in earnings, it has been profitable every single quarter. Because of the robustness of our hyper efficiency model, strong cash flows and solid balance sheet, we are in a position to take advantage of a unique opportunity to repurchase our stock which I believe is substantially undervalued from a long-term growth perspective.Read the rest of this transcript for free on seekingalpha.com