After some recent stock price volatility, Control4 Corporation (NASDAQ: CTRL) is showing Wall St. investors that professionally installed home automation does have legs as the company announced record financial results for its second quarter ended June 30, 2015.
Revenue for the second quarter of 2015 was $44.6 million, compared to revenue of $36.7 million for the second quarter of 2014, representing a year-over-year growth rate of 22 percent. Revenue for the first half of 2015 grew 12 percent year-over-year, from $68.5 million to $76.7 million.
Reaction from investors was strong. The stock rose more than 12 percent in after-hours trading at this writing.
Even more importantly, net income was in the black for the second quarter of 2015 at $2.0 million, or $0.08 per diluted share, consistent with the net income of $2.0 million, or $0.08 per diluted share, in the second quarter of 2014. Net loss for the first half of 2015 was $2.2 million, or $0.09 per diluted share, compared to net income of $1.5 million, or $0.06 per diluted share, for the first half of 2014.
Non-GAAP net income for the second quarter of 2015 was $4.1 million, or $0.16 per diluted share, compared to non-GAAP net income of $3.6 million, or $0.14 per diluted share, in the second quarter of 2014. Non-GAAP net income for the first half of 2015 was $3.0 million, or $0.12 per diluted share, compared to non-GAAP income of $4.4 million, or $0.17 per diluted share, in the first half of 2014. A reconciliation of GAAP to non-GAAP financial information is contained in the attached tables.
“Our double-digit growth rate resumed in March and then continued in the second quarter, resulting in our highest revenue quarter ever,” says Martin Plaehn, chairman and chief executive officer of Control4. “We are confident in the competitiveness and value proposition of our core automation solutions – intelligent lighting, multi-room audio and video, family-room entertainment, and safety and security offerings, all powered by the Control4 platform.”
Commenting on the company’s financial results for the second quarter, Dan Strong, chief financial officer of Control4, added: “Our revenue growth in the quarter was propelled by strong fundamental demand across multiple geographies and across all aspects of our product portfolio. Our core revenue increased 22% compared to the second quarter of 2014, and 39% sequentially from the first quarter of this year.”
For the third quarter of 2015, the company expects revenue to be between $44 million and $47 million, and expects non-GAAP net income to be between $2.5 million and $4.0 million, or between $0.10 and $0.16 per diluted share. The company expects revenue growth for the second half of 2015 to be between 12 percent and 18 percent, which when combined with the revenue growth for the first half of 2015, represents revenue growth for the year to be between 12 percent and 15 percent.
Splitting out the revenues, $34.3 million came from North American and $9.8 million was international. The company reported adding 143 new dealers in Q2 (90 in North America) bringing its total dealer base to 3,421 worldwide. The company shipped 20,908 units in Q2, way up from the 13,931 sent out in Q1.
