Ubiquiti’s second-quarter fiscal 2016 results surpassed the Zacks Consensus Estimate.  Successful product launches, coupled with strength in the Service Provider Technology segment, boosted the company’s results. Also, Ubiquiti’s excellent global business model and cost-scaling initiatives are likely to emerge as long-term growth drivers. The company’s competitively priced network and proprietary network communication platform have been driving significant demand for its products which is supplementing its key financials. Also, the company’s persistent R&D efforts, resulting in innovative product launches, remain a major strength. This apart, the U.S. government’s strong focus on “E-Rate funding” program bodes well for the company in the long term. However, factors like strengthening of the U.S. dollar, rising labor costs and intensifying competition add to the company's concerns.