Control4 Corporation (NASDAQ:CTRL) Q3 2017 Earnings Conference Call Transcript
Nov 02, 2017 • 05:00 pm ET
Good day and welcome to the Control4 Third Quarter 2017 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mark Novakovich. Please go ahead.
Thank you, Operator. Good afternoon everyone and thank you for joining Control4's earnings conference call for the third quarter of 2017. My name is Mark Novakovich, and I'm the CFO for Control4. With me on the call today is Martin Plaehn, our CEO. Prior to this call, we distributed our Q3 2017 earnings release over the wire services, and we have posted it on our website at investor.control4.com as well as furnished it to the SEC on Form 8-K.
(Forward-Looking Cautionary Statements) Now I will turn the call over to Martin.
Thanks, Mark. Welcome, everyone, and thank you for joining us on the Control4 earnings call for the third quarter of 2017. On the call today we will share with you the highlights of another strong financial quarter, an update on recent product announcements and areas of continued strategic focus which we believe will help drive our leadership forward in the professionally installed connected home market. Here are the highlights of business results for Q3. Revenue for the quarter was a record $64.7 million, representing year-over-year growth of 17% and includes approximately $3.8 million from our second full quarter of Triad product sales, which we acquired on February 27, 2017. Our strong Q3 revenue, combined with non-GAAP gross margins of 52.7% and continued expense discipline, enabled us to deliver record non-GAAP net income for the quarter of $9.6 million or $0.35 per diluted share.
Adoption by the Control4 dealer network of Triad product continues to steadily expand, with 1,645 dealers, or 32% of our active dealers, ordering Triad speakers year-to-date. Also during this past quarter, we introduced a new line of Triad high-performance audio speakers specifically designed for new luxury custom home applications. Additionally, we announced and began delivering Control4's second generation of high-performance multiroom audio distribution and amplification products under the Triad audio brand. These new product introductions continue to complement and strengthen Control4's entertainment and automation solutions within home theaters, family rooms, multiroom living areas and outdoor environments.
We continue to invest in and grow the Pakedge networking product category. A total of 2,904 dealers, or 56% of our active dealers, have ordered and installed Pakedge networking products during 2017. Adding to our industry-leading networking product lineups, we recently announced our new WR-1 wireless router at an MSRP of $300, which broadens the selling opportunity for our dealers.
We now have successfully integrated each of our recent acquisitions into Control4, and our channel is actively marketing and selling all these new products, enhancing our core solution competitiveness, which is reflected in our continued double-digit growth rate year-over-year. And our balance sheet remains strong and we are well positioned to make additional investments to grow our business through continued product development and channel expansion as well as through strategic acquisitions.
We generated $6.6 million in net