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.

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