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New words:
actuarial, agreeable, Antitrust, April, assumption, Britain, Carolina, carryover, commencement, consummate, consummated, consummation, Copper, deceleration, deductible, exit, faster, forma, frame, franc, Hebron, implicit, impression, inception, intensifying, interconnected, Ireland, Kentucky, KNX, merge, monopolization, move, mutually, natively, NEEO, package, Parent, pendency, pending, pension, perspective, popular, postretirement, preliminary, Prepaid, receipt, refrain, renegotiate, ROU, seamlessly, settled, Singapore, SnapAV, sponsor, Switzerland, tangible, turn, unfunded, waiting, waived, Wirepath, workforce, Zealand
Removed:
advisory, amplifier, analyzed, anniversary, Area, attestation, auditor, BakPak, buildup, Bulletin, certainty, consuming, corner, decision, deliver, detail, devaluing, disclosed, embedded, enactment, equal, evidence, expedient, expend, explanation, extremely, feasible, forecasted, golden, governance, harbor, iLife, implementation, incomplete, inconsequential, indefinitely, Jumpstart, landscape, leasing, LG, listener, mainstream, manufactured, matrix, mature, moderate, modification, modified, NASDAQ, negotiated, notification, offsetting, offsite, opine, optimal, parachute, partial, planning, presentation, programming, provisional, proxy, push, RCS, realizing, recovered, refundable, reinvested, reinvesting, remeasuring, reversal, revised, SAB, safe, Sanmina, stage, television, thermostat, transact, transparency, treat, unravel, unremitted, unrepatriated, unspecified, upgrade, utilizing, verification, wholly
Financial report summary
?Competition
APXRisks
- The failure to complete the merger with SnapAV could adversely affect our business.
- While the Merger is pending, we are subject to business uncertainties and contractual restrictions that could harm our operations and the future of our business or result in a loss of employees.
- The markets in which we participate are highly competitive and many companies, including large technology companies, retailers, broadband and security service providers, as well as other managed service providers, are actively targeting the home automation market. Our failure to differentiate ourselves and compete successfully against these companies would make it difficult for us to add and retain consumers, and our sales and profitability could be adversely affected.
- Consumers may choose to adopt point products that provide control of discrete home functionality or do-it-yourself (“DIY”) home automation solutions rather than adopt our unified, professionally-installed home automation solution. If we are unable to increase market acceptance of the benefits of our unified solution, our revenue may not continue to grow, or it may decline.
- Providers of luxury integrated installations with long operating histories, established markets, broad user bases and proven consumer acceptance, may be successful in expanding their offerings in the home automation market, or otherwise compete against our solutions, which may reduce our market share and harm our growth and future prospects.
- New entrants may be successful in penetrating the home automation market, which may reduce our market share and harm our growth and future prospects.
- Our quarterly results of operations have fluctuated and may continue to fluctuate. As a result, we may fail to meet or exceed the expectations of investors or securities analysts, which could cause our stock price to decline.
- If we are unable to develop new solutions, sell our solutions into new markets, or further penetrate our existing markets, our revenue may not grow as expected or it may decline.
- We rely on our independent dealers and distributors to sell our solutions, and if our dealers and distributors fail to perform, our ability to sell and distribute our products and services will be limited, and our results of operations may be harmed.
- Since we rely on third-party dealers and distributors to sell and install our solutions, we do not have a direct sales pipeline, which makes it difficult for us to accurately forecast future sales and correctly predict manufacturing requirements.
- We have relatively limited visibility regarding the consumers that ultimately purchase our products, and we often rely on information from third-party dealers and distributors to help us manage our business. If we are unable to obtain timely or accurate information, our ability to quickly react to market changes and effectively manage our business may be harmed.
- If we do not maintain the compatibility of our solutions with third-party products and applications that our consumers use, demand for our solutions could decline.
- If we are unable to adapt to technological change and implement technological and aesthetic enhancements to our products, this could impair our ability to remain competitive.
- Changes in import/export regulatory regimes and duties could negatively impact our business.
- Growth of our business may depend on market awareness and a strong brand, and any failure to develop, broaden, protect and enhance market awareness of our products could hurt our ability to retain or attract consumers.
- We operate in the emerging and evolving home automation market, which may develop more slowly or differently than we expect. If the home automation market does not grow as we expect, or if we cannot expand our solutions to meet the demands of this market, our revenue may decline, fail to grow or fail to grow at an accelerated rate, and we may incur operating losses.
- Our consumers may experience service failures or interruptions due to defects in the software, products, infrastructure, third-party components or processes that comprise our solutions, or due to errors in product installation or servicing by our independent dealers, any of which could harm our business.
- Our networking solutions business may be harmed if users perceive our solution as the cause of a slow or unreliable network connection, or in the event of a high-profile network failure, even though certain technical problems experienced by users may not be caused by our products.
- Failure to maintain the security of our information and technology networks, including information relating to our dealers, distributors, partners, consumers and employees, could adversely affect our business. Furthermore, without limiting the preceding sentence, if security breaches in connection with the delivery of our products and services allow unauthorized third parties to obtain control of or otherwise access consumers’ networks or appliances, our reputation, business, results of operations and financial condition could be harmed.
- We encounter seasonality in sales, which could harm the amount, timing and predictability of our revenue and cause our stock price to fluctuate.
- We may not generate significant revenue as a result of our current research and development efforts.
- Our strategy includes pursuing acquisitions and our potential inability to identify good opportunities and to successfully integrate newly-acquired technologies, assets, businesses, or personnel may harm our financial results.
- Future acquisitions of technologies, assets or businesses, that are paid for partially or entirely through the issuance of stock or stock rights, could dilute the ownership of our existing stockholders.
- We may pursue business opportunities that diverge from our current business model, which may cause our business to suffer.
- Our gross margins can vary significantly depending on multiple factors, which can result in fluctuations in our results of operations.
- If we are unable to manage our business growth and diverse and complex operations, our reputation in the market and our ability to generate revenue from new or existing consumers may be harmed.
- If we fail to retain our key employees and attract talented new personnel as needed, our business would be harmed and we might not be able to implement our business plan successfully.
- Downturns in general economic and market conditions, including but not limited to downturns in housing markets and reductions in consumer spending, may reduce demand for our solutions, which could harm our revenue, results of operations, financial condition and cash flows.
- If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below expectations of securities analysts and investors, resulting in a decline in our stock price.
- Changes in existing financial accounting standards or practices, or taxation rules or practices, may harm our results of operations.
- Mergers or other strategic transactions involving our competitors could weaken our competitive position, which could harm our results of operations.
- Failure to achieve and maintain effective internal control over financial reporting could result in our failure to accurately report our financial results. Any inability to report and file our financial results accurately and timely could harm our business and adversely impact investor confidence in our company and, as a result, the value of our common stock.
- Our failure to raise additional capital or generate cash flows necessary to expand our operations, invest in new technologies and otherwise respond to business opportunities or unforeseen circumstances in the future could reduce our ability to compete successfully and harm our results of operations.
- We may be subject to additional tax liabilities, which would harm our results of operations.
- Our business is subject to the risks of earthquakes, hurricanes, fire, power outages, floods and other catastrophic events, and to interruption by man-made problems such as terrorism.
- Failure to comply with laws and regulations could harm our business.
- Governmental regulations affecting the import or export of our products could harm our revenues.
- Health care reform could increase our cost of labor
- Government regulations of wireless networking in the United States or internationally may result in unanticipated costs and failure to comply with such laws and regulations could harm our business.
- In recent years, a significant amount of our revenue has come from sales outside of the United States, and we are therefore subject to a number of risks associated with international sales and operations.
- Due to the global nature of our business, we could be harmed by violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act or similar anti-corruption laws in other jurisdictions in which we operate, or various international trade and export laws.
- If we fail to protect our intellectual property and proprietary rights adequately, our business could be harmed.
- An assertion by a third party that we are infringing its intellectual property could subject us to costly and time-consuming litigation and lead to expensive licenses or significant liabilities in the event of an adverse judgment.
- We are generally obligated to indemnify our independent dealers, distributors and partners for certain expenses and liabilities resulting from intellectual property infringement claims regarding our products, which could force us to incur substantial costs.
- The use of open source software in our solutions may expose us to additional risks and harm our intellectual property.
- We rely on the availability of third-party licenses. If these licenses are available to us only on less favorable terms or not at all in the future, our business and results of operations may be harmed.
- If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our share price and trading volume could decline.
- Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
Management Discussion
- North America Core revenue increased $0.5 million, or 1% for the three months ended March 31, 2019, compared to the same period in 2018. International Core revenue increased $1.4 million, or 11%, in the three months ended March 31, 2019, compared to the same period in 2018.
- Revenue growth in both North America and internationally is driven by a variety of factors. We continue to see growth from net new dealer additions as well as growth from existing dealers driven by an increase in the number of projects that are being performed and increased revenue per project, which is a derivative of our new product innovation and our acquisition strategy. However, we believe macro-economic factors are creating headwinds for many businesses, including ours, which has contributed to a deceleration in our growth rate starting in the third quarter of 2018 and influence our perspective on near-term opportunities and our current year guidance.
- Our international sales model includes both direct-to-dealer and distribution channels. In targeted international regions and countries, we generally invest in some combination of local technical support, training personnel and facilities, warehousing and fulfillment, and sales support personnel. We have made these types of investments in the regions serviced by our offices in the United Kingdom, Germany, Australia, New Zealand, China, and India and these are markets where we see our greatest opportunity for international growth and expansion.