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How Much Did Control4 Pay for Extra Vegetables?

Financials revealed for Extra Vegetables, including amount paid by Control4 for the home automation software company. EV would have accounted for 25% of CTRL's bottom line.

Extra Vegetables has been very good to Control4's bottom line!
Julie Jacobson · November 28, 2014

Control4 Corp. (Nasdaq: CTRL), a leading provider of mid-market home automation, acquired England-based software developer Extra Vegetables last year through its wholly owned subsidiary Control4 EMEA.

EV makes drivers that enable Control4 to communicate two-way with third-party products and services such as Sonos, Roku, DirecTV, and iTunes. Upon the acquisition, Control4 made these drivers free of charge to all Control4 dealers.

An amended 8-K filing by Control4 on Nov. 26 reveals that the company purchased EV for $882,246 in cash, including a base purchase price of $675,000 and $207,246 as payment for EV’s net working capital.


The income statement for EV shows revenues of £818,000 ($1.3 million) for the 12 months ended Jan. 31, 2014, with net income of £475,000 ($745,000) for the period. For the six months ended June 30, 2014, EV recorded $764,000 in revenue and net income of $460,000—quite a substantial boost to Control4’s bottom line.  EV would have comprised 25% of pro forma net income, if both companies were combined, for the six months ended June 30, 2014.


While EV produced software for URC in addition to Control4 (abruptly discontinuing the offering after the acquisition), almost all of its revenues (92%) came from Control4-related products.

More than half of EV’s revenues (52%) “was the result of sales relating to the license of one specific software driver.”

I’m guessing that’s Sonos.

No customer, according to the filing, accounted for more than 10% of total revenue for the year ended January 31, 2014. Roughly three-quarters of the fiscal-year revenue was in U.S. dollars.

More CTRL Financial News

Control4 posted record revenues for Q3 2014—$39.1 million, representing a 16% increase year-over-year.

CFO Dan Strong provided guidance for Q4, expecting revenue to be between $41 million and $43 million, with non-GAAP net income projected at $4.3 million to $5.7 million, roughly in line with previous estimates, indicating “there are no signs of financial weakness in the immediate future,” reports SeekingAlpha.

Analyst James Godbout provides some highlights of Control4’s most recent earnings call:

There were numerous developments that the CEO mentioned on the conference call that leave me excited to be a shareholder in CTRL. Mr. Plaehn discussed at length the increase in Control4 certified dealers, which now number over 3200 worldwide. These dealers have posted impressive activity numbers, with 97% of North American dealers and 88% of International dealers active during the quarter. Mr. Plaehn also discussed new software that was released that will help dealers simplify and accelerate the setup of Control4 systems - Composer Express. Composer Express is expected to reduce dealer installation time by up to 70%, and will dramatically reduce device registration and configuration time. The software will help dealers expand their business by decreasing training time and installation time for technicians. The software aims to increase dealer throughput and profitability. In my opinion, it should also lower the total cost to consumers of the Control4 system, as it should decrease costs of installation and maintenance, as well as decrease the amount of service calls necessary by allowing for more services to be done remotely. In the long run, this will be part of the process of home automation technology becoming cheaper and thus more accessible to the average homeowner. Assisting with the decrease of costs to the consumer is the acquisition of Extra Vegetables, which Mr. Plaehn discussed during the conference call. The Extra Vegetables acquisition will allow the company to cut device costs by bringing many third-party devices under the Control4 name, thus streamlining device manufacturing and passing cost savings down through the dealers and the consumers.

CFO Strong sold 6,808 shares of Control4 stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $16.00, for a total value of $108,928.00, an SEC filing shows.

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  About the Author

Julie Jacobson is founding editor of CE Pro, the leading media brand for the home-technology channel. She has covered the smart-home industry since 1994, long before there was much of an Internet, let alone an Internet of things. Currently she studies, speaks, writes and rabble-rouses in the areas of home automation, security, networked A/V, wellness-related technology, biophilic design, and the business of home technology. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, and earned an MBA from the University of Texas at Austin. She is a recipient of the annual CTA TechHome Leadership Award, and a CEDIA Fellows honoree. A washed-up Ultimate Frisbee player, Julie currently resides in San Antonio, Texas and sometimes St. Paul, Minn. Follow on Twitter: @juliejacobson Email Julie at

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  Article Topics

News · Control4 · Extra Vegetables · All Topics
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