Smart-home equipment manufacturer Control4 Corporation (NASDAQ: CTRL) revenues continue to be on the upswing, rising 16.7 percent in the first quarter of 2017 compared to last year. The company reported $50.2 million revenue for the quarter compared to $43 million in 2016. At the same time, CTRL stock has been rising this quarter, today reaching a 52-week high of $18.25.
Excluding the revenue generated from the purchase of high-performance speaker maker Triad Holdings back at the end of February, Control4’s revenues were still up 14.3 percent. Triad, which was bought for $9.6 million, earned $1 million in revenue in just over one month as part of Control4.
Control4’s net income for the first quarter of 2017 was $0.8 million, compared to net income in the first quarter of 2016 of $6.6 million. The company has unrestricted cash and net investments of $55.3 million as of March 31, 2017.
Triad Transition Going Well
In a conference call to investors, chairman and CEO Martin Plaehn predicts a strong transition from Control4 dealers to the Triad Speakers product line.
“From day one of the acquisition, Triad and Control4 dealers have been able to place product orders and customization requests via a brand new Triad online dealer portal as well as an updated Control4 online dealer portal,” he says.
Responding to questions from analysts, CFO Mark Novakovich said the current equipment margin for Triad was in the mid-30 percent range, but Control4 anticipates ramping that margin up to between 43 percent and 47 percent in two to three years. Plaehn expects Triad’s revenues to hit $10 million over the next 12 months.
Plaehn also revealed that the reaction from integrators to the new Pakedge BakPak 4.1 remote management software has been strong, noting the company now has 1,800 of its dealers buying Pakedge products.
“As of April 30th, homes and business installations running our newest Control4 OS version 2.9.1 now number above 45,000 installations including more than 33,000 existing installations that have been upgraded to this newest software and more than 12,000 new customers installations enjoying Control4 products for the first time,” he says.
Control4 sold 20,969 EA-Series controllers in Q1, up nearly 7 percent from last year. He also noted that Control4 is currently an option in 300 different Toll Brothers communities, and the company is working to try to boost the visibility of the product line as an available option in those homes.