What happened

Shares of Ubiquiti Networks Inc. (NASDAQ:UBNT) were down 13.4% as of 1:30 p.m. EST Friday after the networking hardware company released mixed fiscal second-quarter 2017 results.

So what

Quarterly revenue climbed 31.9% year over year, to $213.5 million, including 5.5% growth in service provider technology revenue, to $115.6 million, and 87.4% growth in enterprise technology revenue, to $98 million. On the bottom line, that translated to 20.9% growth in adjusted net income, to $60.1 million, and 24.1% growth in adjusted net income per share, to $0.72. 

By comparison, Ubiquiti Networks' latest guidance called for lower revenue in the range of $200 million to $210 million, and higher adjusted earnings per diluted share of $0.73 to $0.79. 

Ubiquiti Networks' AmpliFi HD Meshpoint plugged into an outlet on a kitchen island

Ubiquiti Networks' sleek AmpliFi HD Meshpoint.

During the subsequent conference call, Ubiquiti Networks CEO Robert Pera explained that margins were affected the company's decision to aggressively price its new AmpliFi consumer line of networking hardware. Additionally, the company also "had some last-minute issues with design for production" requiring a redesign, which in turn resulted in higher discrete expedited shipping charges to ensure Amplifi products were available to consumers during the crucial 2016 holiday season.

Even so, Pera insisted, "From a long-term perspective, it's incredibly important we establish this AmpliFi brand. It's not just Wi-Fi, it's going to be a family of products and its really important we hit the time window and we started carving out share in the market."

Meanwhile, investors can take some solace knowing Ubiquiti continues to enjoy strong demand on the enterprise side for both its UniFi product family and new offerings for the Ubiquity service provider community.

Now what

In the meantime, Ubiquiti expects revenue in the current fiscal third quarter 2017 to be in the range of $210 million to $220 million, with adjusted earnings per diluted share of $0.73 to $0.79. By comparison, analysts' consensus estimates predicted Ubiquiti would achieve fiscal third-quarter revenue of just $204.4 million, and adjusted earnings of $0.77 per diluted share.

All things considered, it's unsurprising the market is annoyed with Ubiquiti's bottom-line shortfall this quarter. But it also appears Ubiquiti Networks' long-term story is still intact despite this early launch hiccup with the promising AmpliFi line. As the company continues to disrupt and take share in the markets it chooses to enter, I suspect today's pullback will prove a compelling buying opportunity for patient, long-term investors.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Ubiquiti Networks. The Motley Fool has a disclosure policy.