What changed in this filing

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Item 1. Business

2024-08-23 compared with 2023-08-25 · 29 added, 32 removed, 163 unchanged (27% of the section changed)

9 unchanged sentences

high performance networking technology for enterprises, service providers and consumers.

We target the enterprise and service provider markets through our highly engaged community of service providers, distributors, value added resellers, webstores, systems integrators and

corporate IT professionals, which we refer to as the Ubiquiti Community.

We target consumers through digital marketing, including through our webstores, retail chains and, to a lesser extent, the Ubiquiti Community.

We target the enterprise and service provider markets through our highly engaged community of service providers, distributors, value added resellers, webstores, systems integrators and corporate IT professionals, which we refer to as the Ubiquiti Community.

We target consumers through digital marketing, including

through our webstores, retail chains and, to a lesser extent, the Ubiquiti Community.

In addition to Mr.

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Key Technology Platforms

Our current Enterprise Provider solutions include:

• UniFi Cloud Gateway - UniFi Cloud Gateway is an Enterprise class internet and security gateway device that provides reliable routing, advanced cybersecurity and powerful site management.

• UniFi WiFi - An enterprise WiFi system that combines state-of-the-art hardware with intuitive software management for configuration of access points at scale.

• UniFi Protect - our UniFi Protect platform is a video surveillance platform with private local storage, secure remote access and cameras designed for every deployment.

• UniFi Switch - UniFi Switch is a versatile switching platform that delivers high-capacity performance, and power over ethernet to scale enterprise networks.

• UniFi Access - UniFi Access is a state-of-the art door access solution that is easily expandable with touchscreen readers, live video, and mobile application credential support.

• UniFi Talk - UniFi Talk is a plug-and-play business phone system and VoIP subscription service designed to elevate productivity in organizations.

Our current Service Provider and carrier solutions include:

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Devices on the airMAX platform, such as customer premise equipment (“CPE”), base station, and backhaul, are able to support a wireless network that can scale to hundreds of clients per base station over long distances while maintaining low latency and high throughput.

• EdgeMAX - our EdgeMAX platform is a software and systems routing platform, powered by our full-featured UISP operating system that includes advanced quality of service, firewall, dynamic routing and virtual private network functionality.

• airFiber - our airFiber platform is a wireless backhaul point-to-point radio system, a wireless method of transmitting data to and from network backbone.

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It is designed to enable internet providers (“ISPs”) to quickly build high speed fiber internet networks for many users and over long distance.

Our current Enterprise Provider solutions include:

• UniFi Gateway Console - UniFi Console is an Enterprise class router and security gateway device that is expandable and extends the UniFi enterprise solutions to provide cost-effective, reliable routing and advanced network security.

• UniFi WiFi - our UniFi WiFi platform was designed as an enterprise Wi-Fi system, combining Wi-Fi certified hardware with software-based management controller (UniFi OS).

UniFi uses a virtual controller that allows for on-site management or remote management through the cloud, allowing for configuration of the network and individual access points.

• UniFi Protect - our UniFi Protect platform is a video surveillance system that can be accessed securely from any web browser, provides detailed statistical reporting and advanced analytics and provides a management console with multiple views, versatile camera setting and customizable event recordings.

• UniFi Switch - UniFi Switch delivers performance, switching, and power of ethernet (“PoE+”) support for enterprise networks.

• UniFi Access - UniFi Access is a state-of-the art door access system that is easily expandable.

• UniFi Talk - A new approach to business telephony.

UniFi Talk is a plug-and-play phone system and VoIP subscription service designed for small and medium-sized businesses.

We offer consumer products, called AmpliFi and Alien, which are Wi-Fi system solutions designed to serve the demands of the modern connected home.

We continue to explore consumer related market opportunities and have research and development teams focused on consumer related solutions.

• Wave - Products built on the proprietary Wave Technology platform are engineered to maximize speed/performance across long distances using the worldwide, unlicensed 60GHz band.

Research and Development

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Manufacturing and Suppliers

We use contract manufacturers, primarily located in China and Vietnam, to manufacture our products.

We use contract manufacturers, primarily located in Vietnam and China, to manufacture our products.

Over the long term, our contract manufacturers are not required to manufacture our products for any specific period or in any specific quantity.

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While our agreements with suppliers remains effective, the terms of these agreements, allow either party to terminate the agreements without cause at the end of the annual contract term.

Since 2020, we have experienced, and expect to continue to experience, periodic volatility in the supply of components used to manufacture our products, especially chipsets.

We have experienced in the past, particularly from 2020 to 2023, and may experience in the future, periodic volatility in the supply of components used to manufacture our products.

This has resulted in supply constraints and corresponding increases in component delivery lead times and costs to obtain components, and resulted in delays in product production.

We do not stockpile sufficient components, particularly the chipsets, to cover the time it would take to re-engineer our products to replace the components used to manufacture our products and we generally do not have any guaranteed supply arrangements with our suppliers for these components (including the chipsets).

We do not stockpile sufficient components, to cover the time it would take to re-engineer our products to replace the components used to manufacture our products and we generally do not have any guaranteed supply arrangements with our suppliers for these components (including the chipsets).

While we have attempted to mitigate supply shortages through our contract manufacturers and exploring open-market avenues to procure the necessary components, there is no assurance that we will be able to obtain sufficient supply of such components on suitable terms, including the pricing terms.

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Although these mitigation efforts are intended to optimize our access to the components required to meet customer demand for our products, we have limited visibility into future sales, which makes it difficult to forecast our future results of operations.

These mitigation efforts have increased, and are expected to continue to increase, our balances of finished goods and raw material inventories and vendor deposits.

The increasing balances of finished goods and raw material inventory and vendor deposits significantly increase the risks of future material excess, obsolete inventory and related losses.

We believe that we are taking the right actions to mitigate these continuing supply constraints, however, we recognize the associated risks.

These mitigation efforts have caused our inventory and vendor deposit balances to increase in the past, and they may cause such increases in the future.

These mitigation efforts therefore significantly increase the risks of future material excess, obsolete inventory and related losses.

We believe that we have taken the right actions to mitigate these supply constraints;

however, we recognize the associated risks.

For a further discussion of the uncertainties and business risks associated with the supply constraints, refer to “Part I - Item 1A.

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Our inability to procure sufficient product due to COVID-19 and the worldwide chip shortage had led to a significant increase in our backlog of unfulfilled orders in fiscal 2022.

However, with the abatement of supply constraints, we were able to reduce our backlog of unfulfilled orders in 2023.

However, with the abatement of supply constraints, we were able to reduce our backlog of unfulfilled orders in 2023 and 2024.

However, we do not believe our backlog information is a reliable indicator of our ability to achieve any particular level of revenue or financial performance.

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Our products are designed to operate in growing networks without degradation in performance or operational complexity.

In the backhaul market, our competitors include Cambium Networks, Ceragon Networks, MikroTîkls, Airspan, SAF Tehnika and Trango.

In the CPE market, our competitors include Cambium Networks, MikroTîkls, Ruckus Wireless (CommScope)and TP-LINK Technologies.

In the backhaul market, our competitors include Cambium Networks, Ceragon Networks, MikroTîkls, Airspan and Trango.

In the CPE market, our competitors include Cambium Networks, MikroTîkls, Ruckus Wireless (CommScope), TP-Link Technologies and Tarana Wireless.

In the antenna market, we primarily compete with PCTEL, ARC, ITELITE and Radio Waves.

In the enterprise WLAN market, we primarily compete with Huawei, Aerohive Networks, Aruba Networks (HPE), Ruckus Wireless (CommScope), Cisco Meraki and Cisco.

In the video surveillance market, we primarily compete with Axis Communications, HIKVISION, Mobotix and Vivotek.

In the enterprise WLAN market, we primarily compete with Aerohive Networks, Aruba Networks (HPE), Cisco Meraki and Cisco and Ruckus Wireless (CommScope).

In the video surveillance market, we primarily compete with Axis Communications, HIKVISION, Hanwha Vision and Vivotek.

We expect increased competition from other established and emerging companies if our market continues to develop and expand.

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For further discussion of the risks associated with intellectual property, see “Part I - Item 1A.

Factors - Risks Related to Intellectual Property”.

Risk Factors - Risks Related to Intellectual Property”.

Environmental matters

We are subject to various environmental regulations governing materials usage, packaging and other environmental impacts in the United States and in various countries where our products are manufactured and sold.

We are also subject to regulatory developments, including SEC disclosure regulations relating to "conflict minerals," relating to ethically responsible sourcing of the components and materials used in our products.

We are also subject to regulatory developments, including SEC disclosure regulations relating to "conflict minerals," relating to ethically responsible sourcing of the

components and materials used in our products.

To date, compliance with federal, state, local, and foreign laws enacted for the protection of the environment has had no material effect on our capital expenditures, earnings, or competitive position.

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The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov .

The contents of these websites are not incorporated into this filing.

Further, the Company’s references to the URLs for these websites are intended to be inactive textual references only.

Our executive office is located at 685 Third Avenue, 27th Floor, New York, New York 10017.

Our website address is www.ui.com.

From time to time, we may use our website as a channel of distribution of material information.

The information on, or that can be assessed through, our website is not part of this Annual Report on Form 10-K.

From time to time, we may use our website and its subdomains as a channel of distribution of material information.

The information on, or that can be assessed through, any websites cited herein are not part of this Annual Report on Form 10-K.

Further, the Company's references to any URLs for any websites cited herein are intended to be inactive textual references only.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business