CONTROL4 CORP

CIK:0001259515|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 60,425	$ 59,149
Cost of revenue	31,142	28,410
Gross margin	29,283	30,739
Operating expenses:
Research and development	11,817	10,940
Sales and marketing	13,342	12,535
General and administrative	7,117	6,293
Total operating expenses	32,276	29,768
Income (loss) from operations	(2,993)	971
Other income (expense), net:
Interest, net	344	236
Other income (expense), net	(87)	(357)
Total other income (expense), net	257	(121)
Income (loss) before income taxes	(2,736)	850
Income tax benefit	(766)	(116)
Net income (loss)	$ (1,970)	$ 966
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.07)	$ 0.04
Diluted (in dollars per share)	$ (0.07)	$ 0.04
Weighted-average number of shares:
Basic (in shares)	26,563	25,904
Diluted (in shares)	26,563	27,526

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net income (loss)	$ (1,970)	$ 966
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense	1,109	969
Amortization of intangible assets	1,620	1,446
Loss on disposal of fixed assets		14
Provision for doubtful accounts	8	71
Investment discount and premium amortization, net	(169)	(83)
Stock-based compensation	3,529	3,335
Changes in assets and liabilities:
Accounts receivable, net	2,064	3,235
Inventories	(1,741)	(2,003)
Prepaid expenses and other current assets	(3,034)	(916)
Other assets	1,784	194
Accounts payable	(3,887)	(3,923)
Accrued liabilities	(3,395)	(3,083)
Deferred revenue	25	163
Other long-term liabilities	(650)	84
Net cash provided by (used in) operating activities	(4,707)	469
Investing activities
Purchases of available-for-sale investments	(27,171)	(19,501)
Proceeds from sales of available-for-sale investments	1,800	1,000
Proceeds from maturities of available-for-sale investments	26,399	18,200
Purchases of property and equipment	(1,171)	(892)
Business acquisitions, net of cash acquired	(11,695)
Net cash used in investing activities	(11,838)	(1,193)
Financing activities
Proceeds from exercise of options for common stock	310	2,089
Payments for withholding taxes related to net share settlement of equity awards	(1,847)	(3,614)
Repurchase of common stock	(2,522)	(7,448)
Payment of debt issuance costs		(113)
Net cash used in financing activities	(4,059)	(9,086)
Effect of exchange rate changes on cash and cash equivalents	42	48
Net change in cash and cash equivalents	(20,562)	(9,762)
Unrestricted and restricted cash and cash equivalents at beginning of period	40,654	30,034
Unrestricted and restricted cash and cash equivalents at end of period	20,092	20,272
Supplemental disclosure of cash flow information
Cash paid for interest	81	25
Cash paid for taxes	184	167
Supplemental schedule of non-cash investing and financing activities
Settlement of accounts receivable and other assets in business combinations	4,250
Business acquisitions holdback liability	1,310
Purchases of property and equipment financed by accounts payable	61	207
Net unrealized gains (losses) on available-for-sale investments	$ 55	$ (64)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 19,828	$ 40,395
Restricted cash	264	259
Short-term investments	48,789	52,794
Accounts receivable, net	30,316	33,016
Inventories	45,867	42,684
Prepaid expenses and other current assets	9,633	6,100
Total current assets	154,697	175,248
Property and equipment, net	9,540	9,663
Operating lease right-of-use assets	10,567
Long-term investments	3,201
Intangible assets, net	25,389	20,651
Goodwill	31,403	21,530
Other assets	22,560	25,456
Total assets	257,357	252,548
Current liabilities:
Accounts payable	23,083	26,213
Accrued liabilities	7,151	9,142
Current portion of deferred revenue	5,588	5,507
Current operating lease liability	3,924
Total current liabilities	39,746	40,862
Long-term operating lease liability	7,924
Other long-term liabilities	5,838	5,339
Total liabilities	53,508	46,201
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, $0.0001 par value; 500,000,000 shares authorized; 26,655,506 and 26,516,912 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	3	3
Additional paid-in capital	234,999	235,529
Accumulated deficit	(30,355)	(28,385)
Accumulated other comprehensive loss	(798)	(800)
Total stockholders' equity	203,849	206,347
Total liabilities and stockholders’ equity	$ 257,357	$ 252,548