Control4 Corp. (NASDAQ: CTRL) is on the upswing. The company, which is one of the only pure-play home automation/smart home publicly traded companies, announced financial results for its first quarter ending March 31, 2016 that were up 34 percent year over year and up 24 percent organically.
Revenue for the quarter was $43.0 million, compared to revenue of $32.1 million for the first quarter of 2015, representing year-over-year growth for the quarter of 34 percent. Revenue for the quarter included sales during February and March of $3.2 million from recently-acquired Pakedge Device & Software Inc., which when excluded from total revenue highlights a year-over-year organic Control4 growth rate of 24 percent.
“This quarter’s performance delivered the first wave of results this year arising from the investments we made during 2015 in product development, marketing and sales,” said Martin Plaehn, chairman and chief executive officer of Control4. “Initial orders for our new EA Series Controllers, which we began selling on January 26th, suggest the EA-Series will be a market expanding product-line for Control4. Additionally, our acquisition of Pakedge is proceeding as planned, is being rapidly embraced by our expanding dealer channel, and is enabling us to provide robust, high-performance home networking solutions side-by-side with industry-leading home automation solutions for today’s and tomorrow’s connected homes.”
Commenting on the company’s financial results for the first quarter, Mark Novakovich, chief financial officer of Control4, added: “This quarter we delivered both organic and accretive revenue growth, while holding our operating expenses and investments in the business (excluding the Pakedge acquisition) generally flat with Q4 2015. We achieved revenue above our guidance range and non-GAAP net income at the top end of our guidance range, as well as invested to expand our inventory for prompt delivery of anticipated additional growth in the coming quarters.”
Net income for the first quarter of 2016 was $6.6 million, or $0.28 per diluted share, compared to a net loss of $4.2 million, or $0.17 per diluted share, in the first quarter of 2015.
For 2016, the company expects revenues in Q2 to be between $49.3 million and $51.3 million, which would lead to first half 2016 revenues between $92.3 million and $94.3 million, representing year-over-year growth between 20 percent and 23 percent for the first six months of 2016.
Control4 went public back in August 2013 but has seen its stock price shrink from its opening price point of $14 to currently hovering around $7 per share.
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