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What: Shares of Ubiquiti Networks (NAS: UBNT) got pummeled today, down by 19% at the low, after the company reported earnings and concern over its CEO.
So what: Revenue jumped 79% in the third quarter to $91.7 million, with adjusted earnings per share of $0.30. Going forward, Ubiquiti expects next quarter to see revenue between $93 million and $95 million, with adjusted earnings per share in the range of $0.28 to $0.29.
Now what: Perhaps more interestingly, there are reports coming out of China that CEO Robert Pera has ties with the Chinese mafia and has sent goons to rivals' factories to intimidate and harass them in an attempt to get them to shut down. Local news outlets say Pera is now under investigation by local authorities. Pera is a former Apple hardware engineer turned entrepreneur, and Forbes recently profiled him as one of the world's youngest billionaires, thanks to his 64% stake in Ubiquiti. If the reports turn out true, Ubiquiti will have quite a problem on its hands.
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