Control4 Reports Record Revenue in Q4 2013
Control4, the only pure-play home automation stock (Nasdaq: CTRL), announces record Q4 and full year earnings fueled by 27% increase in North America.
SALT LAKE CITY – Control4 Corp., a provider of automation and control solutions for the connected home, on Tuesday reported record financial results for its fourth quarter and fiscal year ended Dec. 31, 2013.
Revenue for the fourth quarter was $35.8 million, compared with $30.7 million during the same period the previous year, representing 17% year-over-year growth. Revenue for the year ended Dec. 31, 2013, also grew 17% to $128.5 million, compared with $109.5 million for the same period the previous year.
Net income for the fourth quarter of 2013 was $2.3 million, or $0.09 per diluted share, compared with net income of $2.5 million, or $0.13 per diluted share, in the fourth quarter of 2012. Net income for the year ended Dec. 31, 2013, was $3.5 million, or $0.16 per diluted share, compared with a net loss of $3.7 million, or a net loss of $1.58 per diluted share, for the same period the previous year.
During Tuesday’s earnings call, Martin Plaehn, chairman and CEO of Control4 said the company’s year-over-year revenue growth in North America delivered record revenues in the fourth quarter and for the full year.
“I’m excited to report that our North America core revenue for Q4 grew 27% year over year and 24% for the second half. This accelerating growth is an increase over the 17% growth experienced in Q2 and the 18% growth in the first half. The year-over-year increase in our total core revenue was 21% in Q4 compared to 18% in Q3,” he said.
Plaehn highlighted five themes that are driving Control4’s business: the Internet of things; recovery in residential new construction; its dealer base is expanding and productivity is increasing; its newest products are gaining traction; and its Simple Device Discovery Protocol (SDDP) technology is being embraced by the industry.
In late January, Imperial Capital initiated coverage on Control4 with an outperform; $30 PT. Analyst Jeff Kessler labeled Control4 the first publicly traded pure-play vendor within the home automation space. The company’s mission is to deliver an affordable way to control and automate lighting, music, video, security and energy in a single room or throughout the home or business, according to the research brief. Control4 has installed more than 135,000 homes and has a dealer base of more than 3,000 in more than 80 countries.
“[Control4’s] model gives it significant competitive advantage over competitors that typically use an approach that is very expensive, less customized for the client and is much harder to turn into a long-term relationship,” Kessler stated in his research brief.
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