Control4 to Repurchase Up to $20 Million in CTRL Stock

Leading home automation provider Control4 has been authorized by its board to repurchase up to $20 million in CTRL stock, which is trading at an all-time low.

Control4 (Nasdaq: CTRL), a leading provider of professionally installed home automation systems, took a beating recently when it announced an uncharacteristically soft Q1 for its home automation products.

But with new products being shipped, back-orders being fulfilled and cash on hand, the company may repurchase up to $20 million of its stock.

The Control4 board authorized the buy-back-valid for one year or less-which will be funded using Control4’s working capital. As of March 31, 2015, Control4 had cash, cash equivalents and net investments of $84.1 million. As of March 31, 2015, Control4 had approximately 24.3 million common shares outstanding.

The timing and amount of any repurchase of common stock will be determined by Control4 management based on its evaluation of market conditions and other factors, according to the company.

In the press release announcing the possible repurchase, Control4 chairman and CEO states:

“Control4 continues to be a leader in providing premium smart-home solutions, including intelligent lighting, whole-home music and video distribution, and advanced comfort systems. Given our strong working capital position and our expected future cash flow, we believe that we are in a strong position to continue our planned initiatives to fund our growth, as well as repurchase Control4 shares per our newly authorized plan.”

Last week, Control4 reported a 19% decrease in core-business revenues from the prior quarter and almost zero growth from the same quarter in 2014. The company took a major hit on Wall Street, with stock price plummeting about 20% with the news, and currently trading at CTRL’s all-time low.

Control4 had some reasonable explanations for the soft earnings, mostly related to the new (highly anticipated) products introduced in February, which stunted sales of legacy products before Control4 could ship the new stuff. Control4 expects to fulfill the large backlog of orders this quarter.

With today’s news of the repurchase authorization, CTRL is up a few points in heavy trading.

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About the Author


Julie Jacobson, recipient of the 2014 CEA TechHome Leadership Award, is co-founder of EH Publishing, producer of CE Pro, Electronic House, Commercial Integrator, Security Sales and other leading technology publications. She currently spends most of her time writing for CE Pro in the areas of home automation, security, networked A/V and the business of home systems integration.

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