Control4 (CTRL) 10-Q 10 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 03, 2019
Document and Entity Information
Entity Registrant Name	Control4 Corp
Entity Central Index Key	0001259515
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		26,660,960
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

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

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	26,655,506	26,516,912
Common stock, shares outstanding	26,655,506	26,516,912

CONDENSED CONSOLIDATED STATEMEN

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 STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (1,970)	$ 966
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	(53)	(51)
Net unrealized gains (losses) on available-for-sale investments, net of tax	55	(64)
Total other comprehensive income (loss)	2	(115)
Comprehensive income (loss)	$ (1,968)	$ 851

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2017	$ 3		$ 242,281	$ (72,226)	$ (531)	$ 169,527
Balance (in shares) at Dec. 31, 2017	25,832,895
Increase (Decrease) in Stockholders' Equity
Net (loss) income				966		966
Other comprehensive income (loss)					(115)	(115)
Stock-based compensation			2,921			2,921
Issuance of common stock upon exercise of stock options and vesting of restricted stock			(1,525)			(1,525)
Issuance of common stock upon exercise of stock options and vesting of restricted stock (in shares)	475,399
Repurchase of common stock for treasury		$ (7,448)				$ (7,448)
Repurchase of common stock for treasury (in shares)	(300,000)	300,000				300,000
Retirement of treasury stock		$ 7,448	(7,448)
Retirement of treasury stock (in shares)		(300,000)
Balance at Mar. 31, 2018	$ 3		236,229	(71,260)	(646)	$ 164,326
Balance (in shares) at Mar. 31, 2018	26,008,294
Balance at Dec. 31, 2018	$ 3		235,529	(28,385)	(800)	$ 206,347
Balance (in shares) at Dec. 31, 2018	26,516,912					26,516,912
Increase (Decrease) in Stockholders' Equity
Net (loss) income				(1,970)		$ (1,970)
Other comprehensive income (loss)					2	2
Stock-based compensation			3,529			3,529
Stock-based compensation (in shares)	34,854
Issuance of common stock upon exercise of stock options and vesting of restricted stock			(1,537)			(1,537)
Issuance of common stock upon exercise of stock options and vesting of restricted stock (in shares)	243,522
Repurchase of common stock for treasury		$ (2,522)				$ (2,522)
Repurchase of common stock for treasury (in shares)	(139,782)	139,782				139,782
Retirement of treasury stock		$ 2,522	(2,522)
Retirement of treasury stock (in shares)		(139,782)
Balance at Mar. 31, 2019	$ 3		$ 234,999	$ (30,355)	$ (798)	$ 203,849
Balance (in shares) at Mar. 31, 2019	26,655,506					26,655,506

CONDENSED CONSOLIDATED STATEM_3

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)

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Control4 Corporation (‘‘Control4’’ or the ‘‘Company’’) is a leading provider of professionally-installed smart home and business solutions that are designed to personalize and enhance how consumers engage with an ever-changing connected world. The Company’s entertainment, smart lighting, comfort and convenience, safety and security, and networking solutions unlock the potential of connected devices, making entertainment systems easier to use and more accessible, homes and businesses more comfortable and energy efficient, and individuals more connected and secure. The Company’s premium smart home and small business solutions provide consumers with the ability to integrate audio, video, lighting, temperature, security, communications, network management and other functionalities into a unified automation solution, customized to match their lifestyles and business needs. The Company’s advanced software, delivered through the controller and user-interface products together with various cloud services, power this customized experience, enabling cohesive interoperability with thousands of connected Control4 and third-party devices . The Company was incorporated in the state of Delaware on March 27, 2003. Unaudited Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, or any other future interim or annual period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 11, 2019. The December 31, 2018 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the unaudited condensed consolidated financial statements. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, the Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one operating segment. Concentrations of Risk The Company’s accounts receivable are derived from revenue earned from its worldwide network of independent dealers and distributors. The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars, except for sales to dealers and distributors located in Australia, Canada, the European Union, New Zealand, Switzerland, and the United Kingdom, which are generally denominated in Australian dollars, Canadian dollars, euros, New Zealand dollars, Swiss francs, and pounds sterling, respectively. There were no individual account balances greater than 10% of total accounts receivable as of March 31, 2019 and December 31, 2018. No dealer or distributor accounted for more than 10% of total revenue for the three months ended March 31, 2019 and 2018. While the Company partners with many manufacturers, generally one manufacturer is the Company’s sole source for a particular product or product family. A significant disruption in the operations of one of these manufacturers would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations. Use of Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, sales returns, provisions for doubtful accounts, product warranty, inventory obsolescence, litigation, determination of fair value of stock options, deferred tax asset valuation allowances and income taxes. Actual results may differ from those estimates. Limited Product Warranties The Company provides its customers a limited product warranty of two, three, or ten years depending on product type and brand. The limited product warranties require the Company, at its option, to repair or replace defective products during the warranty period at no cost to the customer or refund the purchase price. The Company estimates the costs that may be incurred to replace, repair or issue a refund for defective products and records a reserve at the time revenue is recognized. Factors that affect the Company’s warranty liability include the cost of the products sold, the Company’s historical experience, and management’s judgment regarding anticipated rates of product warranty returns, net of refurbished products. The Company assesses the adequacy of its recorded warranty liability each period and makes adjustments to the liability as necessary. Warranty costs accrued include amounts accrued for products at the time of shipment, adjustments for changes in estimated costs for warranties on products shipped in the period, and changes in estimated costs for warranties on products shipped in prior periods. It is not practicable for the Company to determine the amounts applicable to each of these components. The following table presents the changes in the product warranty liability for the three months ended March 31, 2019 (in thousands): Warranty Liability Balance at December 31, 2018 $ 2,524 Warranty costs accrued 905 Warranty claims (1,030) Balance at March 31, 2019 $ 2,399 Net Income (Loss) Per Common Share Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on net income (loss) per share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options and settlement of restricted stock units. The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ (1,970) $ 966 Denominator: Weighted average common stock outstanding for basic net income (loss) per common share 26,563 25,904 Effect of dilutive securities—stock options and restricted stock units — 1,622 Weighted average common shares and dilutive securities outstanding 26,563 27,526 Potentially dilutive securities, including common equivalent shares, in which the assumed proceeds exceed the average market price of common stock for the applicable period, were not included in the calculation of diluted net income (loss) per share as their impact would be anti-dilutive. The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Options to purchase common stock 1,065 — Restricted stock units 1,114 166 Total 2,179 166 Restricted Cash Restricted cash as of March 31, 2019 and December 31, 2018 is composed of a guarantee made by the Company’s subsidiary in the United Kingdom to HM Revenue & Customs related to a customs duty deferment account. Leases In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842 ) ,” which supersedes the guidance in ASC 840, “Leases .” The guidance requires balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The Company adopted the standard effective January 1, 2019 and elected the package of practical expedients available under the standard. The Company also elected to apply the simplified transition option that allows entities to not apply the new leases standard in the comparative periods presented in financial statements in the year of adoption. Internal controls have been implemented to enable the preparation of financial information on adoption. The adoption of the standard resulted in recording right-of-use (“ROU”) assets of $10.0 million and lease liabilities of $11.9 million as of January 1, 2019. The ROU assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not materially affect our condensed consolidated statements of operations or condensed consolidated statements of cash flows. The Company determines if an arrangement is a lease at inception. Operating lease activity is included in operating lease right-of-use assets, and current and long-term operating lease liabilities on the condensed consolidated balance sheets for leases with terms greater than 12 months. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when its reasonably certain the Company will exercise that option. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans .” The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The new standard is effective for public business entities for annual periods ending after December 31, 2020; early adoption is permitted, and the amendments are applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact of this update on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this update on the consolidated financial statements.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2019
Balance Sheet Components
Balance Sheet Components	2. Balance Sheet Components Inventories consisted of the following (in thousands): March 31, December 31, 2019 2018 Finished goods $ 42,213 $ 39,142 Component parts 3,630 3,490 Work-in-process 24 52 $ 45,867 $ 42,684 Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2019 2018 Income tax receivable $ 4,215 $ 2,073 Prepaid expenses 2,436 1,683 Other 2,982 2,344 $ 9,633 $ 6,100 Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2019 2018 Leasehold improvements $ 6,426 $ 5,954 Lab and warehouse equipment 6,137 5,938 Computer equipment and software 5,788 5,380 Manufacturing tooling and test equipment 4,697 4,598 Furniture and fixtures 4,645 4,670 Other 1,159 1,159 28,852 27,699 Less: accumulated depreciation (19,312) (18,036) $ 9,540 $ 9,663 Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 Compensation accruals $ 3,054 $ 5,444 Sales returns and current portion of warranty liability 2,564 2,539 Other accrued liabilities 1,533 1,159 $ 7,151 $ 9,142 Other long-term liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 Deferred revenue $ 3,156 $ 3,192 Other 1,855 1,272 Warranty 827 875 $ 5,838 $ 5,339

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2019
Financial Instruments
Financial Instruments	3. Financial Instruments Fair Value Measurements The Company’s financial assets that are measured at fair value on a recurring basis consist of money market funds and available-for-sale investments. The following three levels of inputs are used to measure the fair value of financial instruments: Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs are used when little or no market data is available. The fair values for substantially all of the Company’s financial assets are based on quoted prices in active markets or observable inputs. For Level 2 securities, the Company uses a third-party pricing service which provides documentation on an ongoing basis that includes, among other things, pricing information with respect to reference data, methodology, inputs summarized by asset class, pricing application and corroborative information. Cash, Cash Equivalents and Marketable Securities The Company determines realized gains or losses on the sale of marketable securities on a specific identification method. During the three months ended March 31, 2019 and 2018, the Company did not record significant realized gains or losses on the sales of available-for-sale investments. The following tables show the Company’s cash and available-for-sale investments’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category, recorded as cash and cash equivalents or short- or long-term investments as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 14,782 $ — $ — $ 14,782 $ 14,782 $ — $ — Level 1: Money market funds 5,046 — — 5,046 5,046 — — U.S. government notes 15,083 1 — 15,084 — 15,084 — Subtotal 20,129 1 — 20,130 5,046 15,084 — Level 2: Corporate bonds 22,098 9 (5) 22,102 — 18,901 3,201 Commercial paper 14,804 — — 14,804 — 14,804 — Subtotal 36,902 9 (5) 36,906 — 33,705 3,201 Total $ 71,813 $ 10 $ (5) $ 71,818 $ 19,828 $ 48,789 $ 3,201 December 31, 2018 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 30,501 $ — $ — $ 30,501 $ 30,501 $ — $ — Level 1: Money market funds 6,903 — — 6,903 6,903 — — U.S. government notes 10,420 — (14) 10,406 — 10,406 — Subtotal 17,323 — (14) 17,309 6,903 10,406 — Level 2: Corporate bonds 21,612 1 (37) 21,576 — 21,576 — Commercial paper 23,803 — — 23,803 2,991 20,812 — Subtotal 45,415 1 (37) 45,379 2,991 42,388 — Total $ 93,239 $ 1 $ (51) $ 93,189 $ 40,395 $ 52,794 $ — As of March 31, 2019, the Company considers the declines in market value of its investment portfolio to be temporary in nature and does not consider any of its investments other-than-temporarily impaired. During the three months ended March 31, 2019 and 2018, the Company did not recognize any significant impairment charges. The Company invests in highly-rated securities, and its investment policy limits the amount of credit exposure to any one issuer. The policy requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. The maturities of the Company’s long-term investments range from one to two years. When evaluating an investment for other-than-temporary impairment the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, as well as the fact it is not more likely than not that the Company will be required to sell the investment before recovery of the investment’s cost basis, which may be maturity. Fair Value of Other Financial Instruments The carrying amounts reported in the accompanying condensed consolidated financial statements for restricted cash, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of the accounts. Derivative Financial Instruments The Company has foreign currency exposure related to the operations in Australia, Canada, the European Union, New Zealand, Switzerland, and the United Kingdom, as well as other foreign locations. The Company has entered into forward contracts to help offset the exposure to movements in foreign currency exchange rates in relation to certain U.S. dollar denominated balance sheet accounts of its subsidiaries in the United Kingdom and Australia. The foreign currency derivatives are not designated as accounting hedges. The Company recognizes these derivative instruments as either assets or liabilities in the accompanying condensed consolidated balance sheets at fair value. The Company records changes in the fair value (i.e. gains or losses) of these derivative instruments in the accompanying condensed consolidated statement of operations as other income (expense), net. Gains and losses on derivative instruments are included in operating activities in the accompanying condensed consolidated statement of cash flows. The Company settles its foreign exchange contracts on the last day of every month and enters into a new forward contract for the next month. As a result, there are no assets or liabilities recorded in the accompanying condensed consolidated balance sheets related to derivative instruments as of March 31, 2019. The following table shows the pre-tax income (losses) of the Company’s derivative instruments not designated as hedging instruments (in thousands): Three Months Ended March 31, Income Statement Location 2019 2018 Foreign exchange forward contracts Other income (expense), net $ (420) $ (548)

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases
Leases	4. Leases Operating Leases The Company leases office and warehouse space under operating leases that expire between 2019 and 2025. The terms of the leases include periods of free rent, options for the Company to extend the leases (typically three to five years) and increasing rental rates over time. The Company recognizes rental expense under these operating leases on a straight-line basis over the lives of the leases. Operating lease cost was approximately $1.1 million and $0.8 million for the three months ended March 31, 2019 and 2018, respectively. Other information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,274 Right-of-use assets obtained in exchange for new operating lease liabilities 1,088 Weighted-average remaining lease term - operating leases 3.2 years Weighted-average discount rate - operating leases 5.8 % Future minimum rental payments due under non-cancelable operating leases with initial or remaining terms in excess of one year consist of the following as of March 31, 2019 (in thousands): One year $ 5,140 Two years 4,730 Three years 2,000 Four years 902 Five years 482 Thereafter 610 Total lease payments 13,864 Less landlord paid tenant improvements (597) Less imputed interest (1,419) Total $ 11,848

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2019
Acquisitions
Acquisitions	5. Acquisitions NEEO Acquisition On February 1, 2019, Control4 acquired all the outstanding shares of common stock of the Switzerland-based, NEEO AG (“NEEO”) for total consideration transferred of $14.5 million. In accordance with the purchase agreement, $1.3 million of the purchase price will be held for up to 18 months from the acquisition date to cover any of the sellers’ post-closing obligations, including without limitation any indemnification that may arise. The Company has classified the $1.3 million holdback in other long-term liabilities. Total consideration transferred for the NEEO acquisition was allocated to tangible and identifiable intangible assets acquired and liabilities assumed. The Company has adjusted the preliminary allocation of consideration as included in Exhibit 99.2 of Form 8-K/A filed with the U.S. Securities and Exchange Commission on April 16, 2019, with corresponding impacts to the pro forma adjustments reported in the unaudited pro forma condensed combined balance sheet as of December 31, 2018. First, total consideration transferred was increased from $11.0 million to $14.5 million due to a pre-existing relationship between Control4 and NEEO that was effectively settled as a result of the acquisition. Second, a measurement period adjustment was made to remove the deferred tax liability of $1.7 million due to NEEO’s net deferred tax asset position. The preliminary amount of consideration transferred is subject to potential adjustments in the event that the preliminary estimates of accrued liabilities or intangible assets are adjusted pending final valuation, and due to tax-related matters that could have a material impact on the consolidated financial statements. The Company expects the allocation of the consideration transferred to be final within the measurement period (up to one year from the acquisition date). The following reflects the Company’s preliminary allocation of consideration transferred for the NEEO acquisition (in thousands): NEEO Acquisition Cash $ 445 Accounts receivable 17 Inventory 577 Other assets acquired 542 Intangible assets 6,384 Goodwill 9,242 Total assets acquired 17,207 Accounts payable 758 Accrued liabilities 1,478 Pension liability 488 Total net assets acquired $ 14,483 Identifiable Intangible Assets The Company acquired intangible assets that consisted of remote-control technology and other internally developed technologies, which had estimated fair values of $5.8 million and $0.6 million, respectively. The Company will amortize the intangible assets on a straight-line basis over their estimated useful lives of 5 years for the remote-control technology and 2-3 years for the other internally developed technologies. The amortization of these intangible assets is not deductible for income tax purposes. Goodwill Goodwill of $9.2 million represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed and is attributable to NEEO’s assembled workforce, expected synergies and new products. This goodwill is not deductible for income tax purposes. Other From the date of acquisition through March 31, 2019, the Company recorded losses of $0.2 million associated with NEEO but did not record any revenue. In addition, the Company incurred approximately $0.5 million in total acquisition-related costs, which are included in the accompanying condensed consolidated statements of operations as research and development and general and administrative expenses for the three months ended March 31, 2019. Pro Forma Information The unaudited pro forma information for the three months ended March 31, 2019 and 2018 presented below includes the effects of the NEEO acquisition as if it had been consummated as of January 1, 2018, with adjustments to give effect to pro forma events that are directly attributable to the acquisition, including adjustments related to the amortization of acquired intangible assets, stock-based compensation expense, interest expense and estimated tax impacts. These adjustments are based upon information and assumptions available at the time of filing this Quarterly Report on Form 10-Q. The unaudited pro forma information does not reflect any operating efficiency or potential cost savings that could result from the consolidation of NEEO. Accordingly, the unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results of the combined company if the acquisition had occurred at the beginning of the period presented, nor is it indicative of the future results of operations. Three Months Ended March 31, 2019 2018 Revenue $ 60,447 $ 59,306 Income (loss) from operations (3,242) (247) Net income (loss) $ (2,386) $ (241) Net income (loss) per common share: Basic $ (0.09) $ (0.01) Diluted $ (0.09) $ (0.01) Distributor Acquisitions During the three months ended March 31, 2019, the Company began working directly with home automation integrators in Ireland, New Zealand, and Switzerland to better serve and support customers in those countries. The Company transferred $1.4 million in consideration for the acquisition of these distributors. This consideration was allocated to $0.7 million of inventory, $0.1 million of other assets, and $0.6 million of goodwill. The Company determined these acquisitions were not significant.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill consisted of the following (in thousands): Amount Balance at December 31, 2018 $ 21,530 Current period acquisitions 9,874 Foreign currency translation adjustment (1) Balance at March 31, 2019 $ 31,403 Goodwill represents the excess of consideration transferred over the fair value of assets acquired and liabilities assumed. Amortizable Intangible Assets The Company’s intangible assets and related accumulated amortization consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 23,854 $ (11,251) $ 12,603 Customer relationships 12,009 (4,424) 7,585 Trademark/trade name 6,776 (1,575) 5,201 Total intangible assets $ 42,639 $ (17,250) $ 25,389 December 31, 2018 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 17,495 $ (10,145) $ 7,350 Customer relationships 12,009 (4,050) 7,959 Trademark/trade name 6,776 (1,434) 5,342 Non-competition agreements 295 (295) — Total intangible assets $ 36,575 $ (15,924) $ 20,651 The weighted average amortization period for developed technology, customer relationships, and trademarks/trade names is 5.2 years, 8.4 years, and 12.0 years, respectively; and 7.0 years for all amortizable intangible assets in total. The Company recorded amortization expense during the three-month periods ended March 31, 2019 and 2018 for these intangible assets as follows (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 864 $ 921 Research and development 259 28 Sales and marketing 497 497 Total amortization of intangible assets $ 1,620 $ 1,446 Amortization of finite lived intangible assets as of March 31, 2019 for the next five years is as follows (in thousands): Amount Remainder of 2019 $ 5,355 2020 6,051 2021 3,457 2022 3,243 2023 3,183 Thereafter 4,100 $ 25,389

Long-Term Obligations

Long-Term Obligations	3 Months Ended
	Mar. 31, 2019
Long-Term Obligations
Long-Term Obligations	7. Long-Term Obligations Loan and Security Agreement On February 6, 2018, Control4 entered into the 2018 Loan Amendment with SVB, which amends the 2013 Loan Agreement. In the 2018 Loan Amendment, Control4 increased the revolving credit facility from $30.0 million to $40.0 million under the terms of the 2013 Loan Agreement (the “New Credit Facility”). All borrowings under the New Credit Facility are collateralized by the general assets of the Company. Amounts borrowed under the New Credit Facility are due and payable in full on the maturity date, which is January 29, 2020. Advances made pursuant to the New Credit Facility depend on Control4’s leverage ratio and are either: (i) Prime Rate Advances, which bear interest at the Prime Rate plus a Prime Rate Margin of either 0% or 0.25%, or (ii) LIBOR Rate Advances, which bear interest at the LIBOR Rate plus a LIBOR Rate Margin of either 2.50% or 2.75%. Control4 will be assessed an unused revolving line facility fee of 0.25% in any quarter wherein the amount of advances under the New Credit Facility is less than $15.0 million. As of March 31, 2019, Control4 had no outstanding borrowings under the revolving credit facility. The 2018 Loan Amendment contains various restrictive and financial covenants, and the Company was in compliance with each of these covenants as of March 31, 2019.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2019
Revenue Recognition
Revenue Recognition	8. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration expected to be received in exchange for those products or services. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping charges billed to dealers and distributors are included in product revenue and related shipping costs are included in cost of revenue. The Company has elected to account for shipping and handling activities performed after control has been transferred to the customer as a fulfillment cost and accrues for these costs if revenue is recognized before contractually agreed-upon shipping and handling occurs. Solution Products Revenue The Company sells its solution products through a network of independent dealers, distributors and retailers. These dealers, distributors and retailers generally sell the Company’s products as part of a bundled sale, which typically includes other third‑party products and related services, project design, installation services and on‑going support. The Company’s products are generally highly dependent on, and interrelated with, the underlying operating system and cannot function without the operating system. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to dealers, distributors, and retailers, which is typically at the time the product is shipped. In cases where revenue is allocated to software updates and technical support, primarily because the updates and technical support are provided at no additional charge, revenue is recognized as the updates and technical support are provided, which is ratably over the estimated life of the related device. Certain customers may receive cash-based incentives or credits; which are accounted for as variable consideration. The Company records estimated reductions to revenue for dealer incentives at the time of the initial sale. The estimated reductions to revenue are based on the sales terms and the Company’s historical experience and trend analysis. The most common incentive relates to amounts paid or credited to dealers for achieving defined volume levels or growth objectives. Subscription Service Revenue The Company offers a subscription service that allows consumers to control and monitor their homes remotely and allows the consumer’s respective Control4 dealer to perform remote diagnostic services. Subscription revenue is deferred at the time of payment and recognized ratably over the contract period which is typically one year. Third-Party Product Revenue The Company recognizes revenue net of cost of revenue for non-inventoried, third‑party products sold through the Company’s online ordering system. The Company’s primary role is to arrange for another entity to provide the goods or services and the Company does not control the promised good or service before it is transferred to the customer. Significant Judgments The Company’s contracts with dealers, distributors, and retailers can include promises to transfer multiple products and services. Determining whether multiple products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. The Company uses a single amount to estimate SSP for items that are not sold separately, including software updates and technical support provided at no additional charge. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, the SSP is determined using information that may include market conditions and other observable inputs. The Company’s products are generally sold with a limited right of return and the Company may provide other credits or incentives, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Disaggregated Revenue The Company’s revenue includes amounts earned through sales to dealers and distributors located outside of the United States. There was no single foreign country that accounted for more than 10% of total revenue for the three months ended March 31, 2019 and 2018. The following table sets forth revenue from the United States, Canada and all other international dealers and distributors combined (in thousands): Three Months Ended March 31, 2019 2018 Revenue-United States $ 41,003 $ 40,964 Revenue-Canada 5,171 5,264 Revenue-all other international sources 14,251 12,921 Total revenue $ 60,425 $ 59,149 International revenue (excluding Canada) as a percent of total revenue % % Contract Balances As of March 31, 2019 and December 31, 2018, accounts receivable, net of allowance for doubtful accounts, were $30.3 million and $33.0 million, respectively. The Company extends credit to some of its dealers and distributors, which consist primarily of small, local businesses. Issuance of credit is based on ongoing credit evaluations by the Company of dealers’ and distributors’ financial condition and generally requires no collateral. Trade accounts receivable are recorded at the invoiced amount and do not generally bear interest. The Company maintains an allowance for doubtful accounts to reserve for potential uncollectible receivables. The allowance is based upon the creditworthiness of the Company’s dealers and distributors, the dealers’ and distributors’ historical payment experience, the age of the receivables and current market and economic conditions. Provisions for potentially uncollectible receivables are recorded in sales and marketing expenses. The Company writes off accounts receivable balances to the allowance for doubtful accounts when it becomes likely that they will not be collected. The following table presents the changes in the allowance for doubtful accounts (in thousands): Allowance Balance at December 31, 2018 $ 1,529 Provision 8 Write-offs (291) Balance at March 31, 2019 $ 1,246 Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined the contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing products and services, not to receive financing from customers, such as invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. Deferred revenue is comprised mainly of unearned revenue related to subscription services as well as revenue deferred on the sale of solution products for software updates and technical support. The following table presents the changes in deferred revenue for the three months ended March 31, 2019 (in thousands): Deferred Revenue Balance at December 31, 2018 $ 8,699 Deferred revenue 4,593 Recognition of deferred revenue (4,548) Balance at March 31, 2019 $ 8,744 Revenue allocated to remaining performance obligations represent contracted revenue that has not yet been recognized (“contracted not recognized”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but not recognized revenue was $9.8 million as of March 31, 2019, of which the Company expects to recognize approximately 44% of the revenue over the next 12 months and the remainder over a period of three to four years. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has elected to immediately expense contract acquisition costs that would be amortized in one year or less. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year; these incremental costs were immaterial during both periods presented.

Equity Compensation

Equity Compensation	3 Months Ended
	Mar. 31, 2019
Equity Compensation
Equity Compensation	9. Equity Compensation Stock Options In 2003, the Board of Directors adopted the 2003 Equity Incentive Plan (the “2003 Plan”), which provided for the granting of nonqualified and incentive stock options, stock appreciation rights, stock awards, restricted stock units and restricted stock awards. Under the 2003 Plan, the Company was able to grant nonqualified and incentive stock options to directors, employees and non-employees providing services to the Company. On June 11, 2013, the Company’s Board of Directors adopted the 2013 Stock Option and Incentive Plan (the “2013 Plan”), which was subsequently approved by the Company’s stockholders. The 2013 Plan became effective as of the closing of the Company’s initial public offering. To the extent that any awards outstanding under the 2003 Plan are forfeited or lapse unexercised after August 1, 2013, the shares of common stock subject to such awards will become available for issuance under the 2013 Plan. The 2013 Plan provides for annual increases in the number of reserved shares of 5% of the outstanding number of shares of the Company’s Common Stock as of the preceding December 31. On January 1, 2019, the number of reserved shares was increased by 1,325,845 in accordance with the provisions of the 2013 Plan. A summary of stock option activity for the three months ended March 31, 2019 is presented below: Weighted Average Shares Subject Weighted Remaining to Options Average Contractual Outstanding Exercise Price Life (Years) Balance at December 31, 2018 1,081,212 12.98 Exercised (32,010) 9.70 Expired (2,626) 16.96 Forfeited (1,336) 7.28 Balance at March 31, 2019 1,045,240 13.08 Exercisable options at March 31, 2019 1,010,354 13.21 4.4 Vested and expected to vest at March 31, 2019 1,045,240 13.08 4.4 The following table summarizes information about stock options outstanding and exercisable at March 31, 2019: Options Outstanding Options Exercisable Weighted- Weighted- Weighted Average Average Average Number of Remaining Number of Remaining Exercise Underlying Contractual Underlying Contractual Range of Exercise Prices Price Shares Life (in years) Shares Life (in years) $ - 6.22 269,614 2.4 267,480 2.3 $ - 10.57 274,926 4.9 242,174 4.8 $ - 15.60 270,481 5.6 270,481 5.6 $ - 21.16 230,219 4.8 230,219 4.8 1,045,240 1,010,354 For the stock option awards vested during the three months ended March 31, 2019, the total fair value was $0.1 million. The following table summarizes the aggregate intrinsic-value of options exercised, exercisable and vested and expected to vest (in thousands): For the Three Months Ended and as of March 31, 2019 2018 Options Exercised $ 269 $ 2,765 Options Exercisable 4,757 15,335 Options Vested and Expected to Vest 5,026 17,203 Restricted stock units A summary of restricted stock unit activity for the three months ended March 31, 2019 is presented below: Number of Weighted Average Shares Grant Date Fair Value Non-vested balance at December 31, 2018 824,365 $ 19.77 Awarded 808,520 17.69 Vested (314,606) 19.07 Forfeited (9,002) 19.39 Non-vested balance at March 31, 2019 1,309,277 18.66 During the three months ended March 31, 2019, 314,606 restricted stock units vested of which 103,094 shares were withheld for tax purposes resulting in the issuance of 211,512 shares of common stock. Company Matching Contribution to the 401(k) Plan The Company offers a 401(k) Plan and in November 2016, the Company’s Board of Directors authorized a matching contribution by the Company starting in 2017 and amended effective in 2019. Current matching contributions are as follows: the Company will match 100% of the first 1% of salary contributed by a participant, and 70% of the next 5% of salary contributed by a participant, for a maximum matching contribution of 4.5% of the salary of a participant up to the limit on contributions imposed by the Internal Revenue Service (“IRS”) . Currently, the Company funds its match in contribution with shares of Control4’s common stock. During the three months ended March 31, 2019, the Company contributed 34,854 shares of stock to employees under this plan and recorded $0.6 million of expenses associated with this contribution. Stock-based compensation expense Total stock-based compensation expense has been classified as follows in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 78 $ 68 Research and development 1,287 1,084 Sales and marketing 870 959 General and administrative 1,294 1,224 Total stock-based compensation expense $ 3,529 $ 3,335 At March 31, 2019, there was $0.6 million of total unrecognized compensation cost related to non-vested stock option awards that will be recognized over a weighted-average period of 0.3 years. At March 31, 2019, there was $18.0 million of total unrecognized compensation cost related to non-vested restricted stock units that will be recognized over a weighted-average period of 2.3 years if all vesting conditions are met.

Share Repurchases

Share Repurchases	3 Months Ended
	Mar. 31, 2019
Share Repurchases
Share Repurchases	10. Share Repurchases During the three months ended March 31, 2019, the Company repurchased 139,782 shares for $2.5 million compared to 300,000 shares for $7.4 million in the same period in 2018. In October 2018, the Company’s Board of Directors authorized the expansion of the repurchase program providing approval for the Company to repurchase an additional $20 million in Control4 common stock from time to time on the open market until December 31, 2019. As a result, t he Company has $13.6 million remaining under the share repurchase program.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Taxes
Income Taxes	11. Income Taxes Income tax benefit was $0.8 million for the three months ended March 31, 2019, compared to $0.1 million for the three months ended March 31, 2018, or approximately 28% and 14% of income (loss) before income taxes, respectively. The effective tax rate for the three months ended March 31, 2019 differs from the U.S. federal statutory rate of 21% As of December 31, 2018, the Company’s NOL carryforward amounts for U.S. federal income and state tax purposes were $57.1 million and $61.1 million, respectively. The federal and state NOL carryforwards will expire between 2020 and 2037 if not utilized. In addition to the NOL carryforwards, as of December 31, 2018, the Company had U.S. federal and state research and development credit carryforwards of $6.4 million and $2.8 million, respectively, which will expire between 2019 and 2034. The Company files income tax returns in the United States, including various state and local jurisdictions. The Company’s subsidiaries file income tax returns in Australia, China, Germany, India, New Zealand, Serbia, Switzerland, and the United Kingdom. The Company is subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company is no longer subject to income tax examinations for the following jurisdictions and years: federal, for years before 2015; state and local, for years before 2014; or foreign, for years before 2013. However, federal net operating loss and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used.

Retirement Benefits

Retirement Benefits	3 Months Ended
	Mar. 31, 2019
Retirement Benefits
Retirement Benefits	12. Retirement Benefits As part of the acquisition of NEEO, the Company assumed a defined benefit plan covering all employees in Switzerland. GAAP requires recognition of the funded status, or difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the balance sheet, by recording a corresponding expense in net loss. If the projected benefit obligation exceeds the fair value of plan assets, then that difference or unfunded status represents the pension liability. The Company records a net periodic pension cost in the condensed consolidated statements of comprehensive income (loss). The liabilities and annual income or expense of the pension plan is determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The expected long-term rate of return on plan assets during the year is 1.5% Future benefits, to the extent that they are based on compensation, include salary increases consistent with past experiences and estimates of future increases in the Swiss labor market. The fair value of plan assets is determined based on prevailing market prices. The components of net periodic pension cost and other amounts recognized in other comprehensive loss before taxes are as follows (in thousands): Three Months Ended March 31, 2019 Service Cost $ 50 Interest Cost 2 Expected Return on Plan Assets (2) Amortization of initial net obligation (asset) 7 Amortization of net (gain) loss 2 Net periodic benefit cost 59 The components of net periodic benefit cost other than the service cost component are included in the line item “other income (expense), net” in the condensed consolidated statement of operations. The Company contributed $172,000 to the pension plan during the three months ended March 31, 2019. The Company expects to contribute approximately $60,000 to the pension plan during the remainder of 2019.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Related Party Transactions
Related Party Transactions	13. Related Party Transactions As part of the acquisition of NEEO, the Company assumed a $0.2 million obligation due to one of the former owners of NEEO, who is now a current employee, that is outstanding as of March 31, 2019.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies Purchase Commitments The Company had non-cancellable purchase commitments for the purchase of inventory, which extend through March 2020 totaling approximately $61.3 million as of March 31, 2019. Indemnification of Directors and Officers The Company has agreed to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company has a directors’ and officers’ insurance policy that provides corporate reimbursement coverage that limits its exposure and enables it to recover a portion of any future amounts paid. The Company has no liabilities recorded for these agreements as of March 31, 2019, as there were no outstanding claims. Legal Matters From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company is not presently a party to any legal proceedings, that if determined adversely to Control4, the Company believes would individually or in the aggregate have a material adverse effect on the business, results of operations, financial condition or cash flows.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events.
Subsequent Events	15. Subsequent Events On May 8, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Wirepath Home Systems, LLC, a North Carolina limited liability company (“Parent”), and Copper Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of Parent, to be acquired for an aggregate value of approximately $680 million (the “Merger”). Under the terms of the Merger Agreement, Company stockholders will receive $23.91 per share in cash upon the closing of the Merger. The Merger is subject to approval by the Company’s stockholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the decisions, orders, consents or expiration of any waiting periods required to consummate the Merger under the foreign investment, monopolization and anti-competition laws and regulations of certain foreign jurisdictions, the accuracy of the representations and warranties and compliance with the covenants contained in the Merger Agreement, subject to qualifications, and other customary closing conditions. The Merger is currently expected to close in the second half of 2019.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Description of Business and Summary of Significant Accounting Policies
Unaudited Interim Financial Statements	Unaudited Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, considered necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, or any other future interim or annual period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 11, 2019. The December 31, 2018 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date.
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in the unaudited condensed consolidated financial statements.
Segment Reporting	Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, the Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one operating segment.
Concentrations of Risk	Concentrations of Risk The Company’s accounts receivable are derived from revenue earned from its worldwide network of independent dealers and distributors. The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars, except for sales to dealers and distributors located in Australia, Canada, the European Union, New Zealand, Switzerland, and the United Kingdom, which are generally denominated in Australian dollars, Canadian dollars, euros, New Zealand dollars, Swiss francs, and pounds sterling, respectively. There were no individual account balances greater than 10% of total accounts receivable as of March 31, 2019 and December 31, 2018. No dealer or distributor accounted for more than 10% of total revenue for the three months ended March 31, 2019 and 2018. While the Company partners with many manufacturers, generally one manufacturer is the Company’s sole source for a particular product or product family. A significant disruption in the operations of one of these manufacturers would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations.
Use of Accounting Estimates	Use of Accounting Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, sales returns, provisions for doubtful accounts, product warranty, inventory obsolescence, litigation, determination of fair value of stock options, deferred tax asset valuation allowances and income taxes. Actual results may differ from those estimates.
Limited Product Warranties	Limited Product Warranties The Company provides its customers a limited product warranty of two, three, or ten years depending on product type and brand. The limited product warranties require the Company, at its option, to repair or replace defective products during the warranty period at no cost to the customer or refund the purchase price. The Company estimates the costs that may be incurred to replace, repair or issue a refund for defective products and records a reserve at the time revenue is recognized. Factors that affect the Company’s warranty liability include the cost of the products sold, the Company’s historical experience, and management’s judgment regarding anticipated rates of product warranty returns, net of refurbished products. The Company assesses the adequacy of its recorded warranty liability each period and makes adjustments to the liability as necessary. Warranty costs accrued include amounts accrued for products at the time of shipment, adjustments for changes in estimated costs for warranties on products shipped in the period, and changes in estimated costs for warranties on products shipped in prior periods. It is not practicable for the Company to determine the amounts applicable to each of these components. The following table presents the changes in the product warranty liability for the three months ended March 31, 2019 (in thousands): Warranty Liability Balance at December 31, 2018 $ 2,524 Warranty costs accrued 905 Warranty claims (1,030) Balance at March 31, 2019 $ 2,399
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period that have a dilutive effect on net income (loss) per share. Potentially dilutive common shares result from the assumed exercise of outstanding stock options and settlement of restricted stock units. The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ (1,970) $ 966 Denominator: Weighted average common stock outstanding for basic net income (loss) per common share 26,563 25,904 Effect of dilutive securities—stock options and restricted stock units — 1,622 Weighted average common shares and dilutive securities outstanding 26,563 27,526 Potentially dilutive securities, including common equivalent shares, in which the assumed proceeds exceed the average market price of common stock for the applicable period, were not included in the calculation of diluted net income (loss) per share as their impact would be anti-dilutive. The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Options to purchase common stock 1,065 — Restricted stock units 1,114 166 Total 2,179 166
Restricted Cash	Restricted Cash Restricted cash as of March 31, 2019 and December 31, 2018 is composed of a guarantee made by the Company’s subsidiary in the United Kingdom to HM Revenue & Customs related to a customs duty deferment account.
Leases	Leases In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842 ) ,” which supersedes the guidance in ASC 840, “Leases .” The guidance requires balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The Company adopted the standard effective January 1, 2019 and elected the package of practical expedients available under the standard. The Company also elected to apply the simplified transition option that allows entities to not apply the new leases standard in the comparative periods presented in financial statements in the year of adoption. Internal controls have been implemented to enable the preparation of financial information on adoption. The adoption of the standard resulted in recording right-of-use (“ROU”) assets of $10.0 million and lease liabilities of $11.9 million as of January 1, 2019. The ROU assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not materially affect our condensed consolidated statements of operations or condensed consolidated statements of cash flows. The Company determines if an arrangement is a lease at inception. Operating lease activity is included in operating lease right-of-use assets, and current and long-term operating lease liabilities on the condensed consolidated balance sheets for leases with terms greater than 12 months. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when its reasonably certain the Company will exercise that option.

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Description of Business and Summary of Significant Accounting Policies
Schedule of changes in the product warranty liability	The following table presents the changes in the product warranty liability for the three months ended March 31, 2019 (in thousands): Warranty Liability Balance at December 31, 2018 $ 2,524 Warranty costs accrued 905 Warranty claims (1,030) Balance at March 31, 2019 $ 2,399
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share	The following table presents the reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) $ (1,970) $ 966 Denominator: Weighted average common stock outstanding for basic net income (loss) per common share 26,563 25,904 Effect of dilutive securities—stock options and restricted stock units — 1,622 Weighted average common shares and dilutive securities outstanding 26,563 27,526
Schedule of anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share	The following weighted-average common stock equivalents were anti-dilutive and therefore were excluded from the calculation of diluted net income (loss) per share (in thousands): Three Months Ended March 31, 2019 2018 Options to purchase common stock 1,065 — Restricted stock units 1,114 166 Total 2,179 166

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2019
Balance Sheet Components
Schedule of inventories	Inventories consisted of the following (in thousands): March 31, December 31, 2019 2018 Finished goods $ 42,213 $ 39,142 Component parts 3,630 3,490 Work-in-process 24 52 $ 45,867 $ 42,684
Schedule of property and equipment, net	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2019 2018 Income tax receivable $ 4,215 $ 2,073 Prepaid expenses 2,436 1,683 Other 2,982 2,344 $ 9,633 $ 6,100 Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2019 2018 Leasehold improvements $ 6,426 $ 5,954 Lab and warehouse equipment 6,137 5,938 Computer equipment and software 5,788 5,380 Manufacturing tooling and test equipment 4,697 4,598 Furniture and fixtures 4,645 4,670 Other 1,159 1,159 28,852 27,699 Less: accumulated depreciation (19,312) (18,036) $ 9,540 $ 9,663
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2019 2018 Income tax receivable $ 4,215 $ 2,073 Prepaid expenses 2,436 1,683 Other 2,982 2,344 $ 9,633 $ 6,100
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 Compensation accruals $ 3,054 $ 5,444 Sales returns and current portion of warranty liability 2,564 2,539 Other accrued liabilities 1,533 1,159 $ 7,151 $ 9,142
Schedule of other long-term liabilities	Other long-term liabilities consisted of the following (in thousands): March 31, December 31, 2019 2018 Deferred revenue $ 3,156 $ 3,192 Other 1,855 1,272 Warranty 827 875 $ 5,838 $ 5,339

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Financial Instruments
Schedule of cash and available-for-sale investments' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term investments	The following tables show the Company’s cash and available-for-sale investments’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category, recorded as cash and cash equivalents or short- or long-term investments as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 14,782 $ — $ — $ 14,782 $ 14,782 $ — $ — Level 1: Money market funds 5,046 — — 5,046 5,046 — — U.S. government notes 15,083 1 — 15,084 — 15,084 — Subtotal 20,129 1 — 20,130 5,046 15,084 — Level 2: Corporate bonds 22,098 9 (5) 22,102 — 18,901 3,201 Commercial paper 14,804 — — 14,804 — 14,804 — Subtotal 36,902 9 (5) 36,906 — 33,705 3,201 Total $ 71,813 $ 10 $ (5) $ 71,818 $ 19,828 $ 48,789 $ 3,201 December 31, 2018 Cash and Adjusted Unrealized Unrealized Cash Short-term Long-term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 30,501 $ — $ — $ 30,501 $ 30,501 $ — $ — Level 1: Money market funds 6,903 — — 6,903 6,903 — — U.S. government notes 10,420 — (14) 10,406 — 10,406 — Subtotal 17,323 — (14) 17,309 6,903 10,406 — Level 2: Corporate bonds 21,612 1 (37) 21,576 — 21,576 — Commercial paper 23,803 — — 23,803 2,991 20,812 — Subtotal 45,415 1 (37) 45,379 2,991 42,388 — Total $ 93,239 $ 1 $ (51) $ 93,189 $ 40,395 $ 52,794 $ —
Schedule of pre-tax income (losses) not designated as hedging instruments	The following table shows the pre-tax income (losses) of the Company’s derivative instruments not designated as hedging instruments (in thousands): Three Months Ended March 31, Income Statement Location 2019 2018 Foreign exchange forward contracts Other income (expense), net $ (420) $ (548)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases
Summary of other information related to leases	Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,274 Right-of-use assets obtained in exchange for new operating lease liabilities 1,088 Weighted-average remaining lease term - operating leases 3.2 years Weighted-average discount rate - operating leases 5.8 %
Summary of future minimum lease payments under non-cancelable operating leases	Future minimum rental payments due under non-cancelable operating leases with initial or remaining terms in excess of one year consist of the following as of March 31, 2019 (in thousands): One year $ 5,140 Two years 4,730 Three years 2,000 Four years 902 Five years 482 Thereafter 610 Total lease payments 13,864 Less landlord paid tenant improvements (597) Less imputed interest (1,419) Total $ 11,848

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2019
Acquisitions
Payments to acquire businesses modified by measurement period adjustments	The following reflects the Company’s preliminary allocation of consideration transferred for the NEEO acquisition (in thousands): NEEO Acquisition Cash $ 445 Accounts receivable 17 Inventory 577 Other assets acquired 542 Intangible assets 6,384 Goodwill 9,242 Total assets acquired 17,207 Accounts payable 758 Accrued liabilities 1,478 Pension liability 488 Total net assets acquired $ 14,483
Schedule of unaudited pro forma information regarding the acquisition	Three Months Ended March 31, 2019 2018 Revenue $ 60,447 $ 59,306 Income (loss) from operations (3,242) (247) Net income (loss) $ (2,386) $ (241) Net income (loss) per common share: Basic $ (0.09) $ (0.01) Diluted $ (0.09) $ (0.01)

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets
Schedule of changes in carrying amount of goodwill	Changes in the carrying amount of goodwill consisted of the following (in thousands): Amount Balance at December 31, 2018 $ 21,530 Current period acquisitions 9,874 Foreign currency translation adjustment (1) Balance at March 31, 2019 $ 31,403
Schedule of company's intangible assets and related accumulated amortization	The Company’s intangible assets and related accumulated amortization consisted of the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 23,854 $ (11,251) $ 12,603 Customer relationships 12,009 (4,424) 7,585 Trademark/trade name 6,776 (1,575) 5,201 Total intangible assets $ 42,639 $ (17,250) $ 25,389 December 31, 2018 Gross Carrying Accumulated Amount Amortization Net Developed technology $ 17,495 $ (10,145) $ 7,350 Customer relationships 12,009 (4,050) 7,959 Trademark/trade name 6,776 (1,434) 5,342 Non-competition agreements 295 (295) — Total intangible assets $ 36,575 $ (15,924) $ 20,651
Schedule of amortization expense during the respective periods	The Company recorded amortization expense during the three-month periods ended March 31, 2019 and 2018 for these intangible assets as follows (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 864 $ 921 Research and development 259 28 Sales and marketing 497 497 Total amortization of intangible assets $ 1,620 $ 1,446
Schedule of amortization of finite lived intangible assets	Amortization of finite lived intangible assets as of March 31, 2019 for the next five years is as follows (in thousands): Amount Remainder of 2019 $ 5,355 2020 6,051 2021 3,457 2022 3,243 2023 3,183 Thereafter 4,100 $ 25,389

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue Recognition
Schedule of revenue from United States, Canada and all other international dealers and distributors combined	The following table sets forth revenue from the United States, Canada and all other international dealers and distributors combined (in thousands): Three Months Ended March 31, 2019 2018 Revenue-United States $ 41,003 $ 40,964 Revenue-Canada 5,171 5,264 Revenue-all other international sources 14,251 12,921 Total revenue $ 60,425 $ 59,149 International revenue (excluding Canada) as a percent of total revenue % %
Summary of changes in the allowance for doubtful accounts	The following table presents the changes in the allowance for doubtful accounts (in thousands): Allowance Balance at December 31, 2018 $ 1,529 Provision 8 Write-offs (291) Balance at March 31, 2019 $ 1,246
Schedule of changes in deferred revenue	The following table presents the changes in deferred revenue for the three months ended March 31, 2019 (in thousands): Deferred Revenue Balance at December 31, 2018 $ 8,699 Deferred revenue 4,593 Recognition of deferred revenue (4,548) Balance at March 31, 2019 $ 8,744

Equity Compensation (Tables)

Equity Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Equity Compensation
Summary of stock option activity	Weighted Average Shares Subject Weighted Remaining to Options Average Contractual Outstanding Exercise Price Life (Years) Balance at December 31, 2018 1,081,212 12.98 Exercised (32,010) 9.70 Expired (2,626) 16.96 Forfeited (1,336) 7.28 Balance at March 31, 2019 1,045,240 13.08 Exercisable options at March 31, 2019 1,010,354 13.21 4.4 Vested and expected to vest at March 31, 2019 1,045,240 13.08 4.4
Summary of stock options outstanding and exercisable	The following table summarizes information about stock options outstanding and exercisable at March 31, 2019: Options Outstanding Options Exercisable Weighted- Weighted- Weighted Average Average Average Number of Remaining Number of Remaining Exercise Underlying Contractual Underlying Contractual Range of Exercise Prices Price Shares Life (in years) Shares Life (in years) $ - 6.22 269,614 2.4 267,480 2.3 $ - 10.57 274,926 4.9 242,174 4.8 $ - 15.60 270,481 5.6 270,481 5.6 $ - 21.16 230,219 4.8 230,219 4.8 1,045,240 1,010,354
Summary of aggregate intrinsic-value of options exercised, outstanding and exercisable	The following table summarizes the aggregate intrinsic-value of options exercised, exercisable and vested and expected to vest (in thousands): For the Three Months Ended and as of March 31, 2019 2018 Options Exercised $ 269 $ 2,765 Options Exercisable 4,757 15,335 Options Vested and Expected to Vest 5,026 17,203
Summary of restricted stock unit activity	Number of Weighted Average Shares Grant Date Fair Value Non-vested balance at December 31, 2018 824,365 $ 19.77 Awarded 808,520 17.69 Vested (314,606) 19.07 Forfeited (9,002) 19.39 Non-vested balance at March 31, 2019 1,309,277 18.66
Schedule of total stock-based compensation expense classified in Statements of Operations	Total stock-based compensation expense has been classified as follows in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended March 31, 2019 2018 Cost of revenue $ 78 $ 68 Research and development 1,287 1,084 Sales and marketing 870 959 General and administrative 1,294 1,224 Total stock-based compensation expense $ 3,529 $ 3,335

Retirement Benefits (Tables)

Retirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2019
Retirement Benefits
Schedule of components of net periodic pension cost	Three Months Ended March 31, 2019 Service Cost $ 50 Interest Cost 2 Expected Return on Plan Assets (2) Amortization of initial net obligation (asset) 7 Amortization of net (gain) loss 2 Net periodic benefit cost 59

Description of Business and S_4

Description of Business and Summary of Significant Accounting Policies (Segment) (Details)	3 Months Ended
	Mar. 31, 2019segment
Segment Reporting
Number of operating segments	1

Description of Business and S_5

Description of Business and Summary of Significant Accounting Policies (Concentrations of Risk) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting
Revenue concentration	$ 0	$ 0
Concentration risk, percentage	10.00%	10.00%

Description of Business and S_6

Description of Business and Summary of Significant Accounting Policies (EPS) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income (loss)	$ (1,970)	$ 966
Denominator:
Weighted average common stock outstanding for basic net income per common share (in shares)	26,563	25,904
Effect of dilutive securities—stock options and restricted stock units (in shares)		1,622
Weighted average common shares and dilutive securities outstanding (in shares)	26,563	27,526

Description of Business and S_7

Description of Business and Summary of Significant Accounting Policies (Anti-dilutive) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	2,179	166
Options | Common Stock
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	1,065
Restricted stock units
Anti-dilutive weighted-average common stock equivalents excluded from the calculation of diluted net income per share
Total (in shares)	1,114	166

Description of Business and S_8

Description of Business and Summary of Significant Accounting Policies (Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Description of Business and Summary of Significant Accounting Policies
Operating lease right-of-use assets	$ 10,567	$ 10,000
Lease liabilities	$ 11,848	$ 11,900

Description of Business and S_9

Description of Business and Summary of Significant Accounting Policies (Warranties) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Changes in the product warranty liability
Balance at the beginning of the period	$ 2,524
Warranty costs accrued	905
Warranty claims	(1,030)
Balance at the end of the period	$ 2,399
Alternate
Product Warranty
Product warranty period	3 years
Minimum
Product Warranty
Product warranty period	2 years
Maximum
Product Warranty
Product warranty period	10 years

Balance Sheet Components (Inven

Balance Sheet Components (Inventories, Property and Equipment) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories
Finished goods	$ 42,213	$ 39,142
Component parts	3,630	3,490
Work-in-process	24	52
Total inventories	45,867	42,684
Property and equipment, net
Property and equipment, gross	28,852	27,699
Less: accumulated depreciation	(19,312)	(18,036)
Property and equipment, net	9,540	9,663
Leasehold improvements
Property and equipment, net
Property and equipment, gross	6,426	5,954
Lab and warehouse equipment
Property and equipment, net
Property and equipment, gross	6,137	5,938
Computer equipment and software
Property and equipment, net
Property and equipment, gross	5,788	5,380
Manufacturing tooling and test equipment
Property and equipment, net
Property and equipment, gross	4,697	4,598
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	4,645	4,670
Other
Property and equipment, net
Property and equipment, gross	$ 1,159	$ 1,159

Balance Sheet Components (Prepa

Balance Sheet Components (Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Prepaid expenses and other assets
Income tax receivable	$ 4,215	$ 2,073
Prepaid expenses	2,436	1,683
Other	2,982	2,344
Total prepaid expenses and other current assets	$ 9,633	$ 6,100

Balance Sheet Components (Accru

Balance Sheet Components (Accrued liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accrued liabilities
Compensation accruals	$ 3,054	$ 5,444
Sales returns and current portion of warranty liability	2,564	2,539
Other accrued liabilities	1,533	1,159
Total accrued liabilities	$ 7,151	$ 9,142

Balance Sheet Components (Other

Balance Sheet Components (Other long-term liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Balance Sheet Components
Deferred revenue	$ 3,156	$ 3,192
Other	1,855	1,272
Warranty	827	875
Total other long-term liabilities	$ 5,838	$ 5,339

Financial Instruments (Details)

Financial Instruments (Details) - Measured on a recurring basis - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Measurements
Adjusted Cost, assets	$ 71,813	$ 93,239
Fair Value, assets	71,818	93,189
Unrealized Gains, assets	10	1
Unrealized Losses, assets	(5)	(51)
Cash and Cash Equivalents
Fair Value Measurements
Fair Value, assets	19,828	40,395
Short-term investments
Fair Value Measurements
Fair Value, assets	48,789	52,794
Long-term investments
Fair Value Measurements
Fair Value, assets	3,201
Cash
Fair Value Measurements
Fair value, cash and cash equivalents	14,782	30,501
Adjusted Cost, assets	14,782	30,501
Cash | Cash and Cash Equivalents
Fair Value Measurements
Fair value, cash and cash equivalents	14,782	30,501
Level 1
Fair Value Measurements
Adjusted Cost, assets	20,129	17,323
Fair Value, assets	20,130	17,309
Unrealized Gains, assets	1
Unrealized Losses, assets		(14)
Level 1 | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, assets	5,046	6,903
Level 1 | Short-term investments
Fair Value Measurements
Fair Value, assets	15,084	10,406
Level 1 | Money market funds
Fair Value Measurements
Fair value, cash and cash equivalents	5,046	6,903
Adjusted Cost, assets	5,046	6,903
Level 1 | Money market funds | Cash and Cash Equivalents
Fair Value Measurements
Fair value, cash and cash equivalents	5,046	6,903
Level 1 | U.S. government notes
Fair Value Measurements
Adjusted Cost, available-for-sale securities	15,083	10,420
Unrealized Gains, available-for-sale securities	1
Unrealized Losses, available-for-sale securities		(14)
Fair Value, available-for-sale investments	15,084	10,406
Level 1 | U.S. government notes | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	15,084	10,406
Level 2
Fair Value Measurements
Adjusted Cost, available-for-sale securities	36,902	45,415
Unrealized Gains, available-for-sale securities	9	1
Unrealized Losses, available-for-sale securities	(5)	(37)
Fair Value, available-for-sale investments	36,906	45,379
Level 2 | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments		2,991
Level 2 | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	33,705	42,388
Level 2 | Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	3,201
Level 2 | Corporate bonds
Fair Value Measurements
Adjusted Cost, available-for-sale securities	22,098	21,612
Unrealized Gains, available-for-sale securities	9	1
Unrealized Losses, available-for-sale securities	(5)	(37)
Fair Value, available-for-sale investments	22,102	21,576
Level 2 | Corporate bonds | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	18,901	21,576
Level 2 | Corporate bonds | Long-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	3,201
Level 2 | Commercial paper
Fair Value Measurements
Adjusted Cost, available-for-sale securities	14,804	23,803
Fair Value, available-for-sale investments	14,804	23,803
Level 2 | Commercial paper | Cash and Cash Equivalents
Fair Value Measurements
Fair Value, available-for-sale investments		2,991
Level 2 | Commercial paper | Short-term investments
Fair Value Measurements
Fair Value, available-for-sale investments	$ 14,804	$ 20,812

Financial Instruments (Investme

Financial Instruments (Investment and Derivative Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Foreign exchange contracts
Fair Value Measurements
Assets related to derivative instruments	$ 0
Liabilities related to derivative instruments	0
Foreign exchange contracts | Other income (expense), net | Not designated as hedging instrument
Fair Value Measurements
Foreign exchange forward contracts	$ (420)	$ (548)
Minimum
Fair Value Measurements
Maturity period of long-term investments	1 year
Maximum
Fair Value Measurements
Maturity period of long-term investments	2 years

Leases - Other Information (Det

Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases
Options to extend leases	true
Operating lease cost	$ 1,100	$ 800
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	1,274
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,088
Weighted-average remaining lease term - operating leases	3 years 2 months 12 days
Weighted-average discount rate - operating leases	5.80%
Minimum
Leases
Renewal term of the lease	3 years
Maximum
Leases
Renewal term of the lease	5 years

Leases - Future Minimum Rental

Leases - Future Minimum Rental Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Future minimum lease payments under non-cancelable operating leases
One year	$ 5,140
Two years	4,730
Three years	2,000
Four years	902
Five years	482
Thereafter	610
Total lease payments	13,864
Less landlord paid tenant improvements	(597)
Less imputed interest	(1,419)
Total	$ 11,848	$ 11,900

Acquisitions (Details)

Acquisitions (Details) $ in Thousands	Feb. 01, 2019USD ($)
Business Acquisition [Line Items]
Cash acquired in acquisition	$ 445
Business acquisitions holdback liability	$ 1,300
NEEO AG
Business Acquisition [Line Items]
Purchase agreement, portion of purchase price held, period from acquisition date (in months)	18 months
Before measurement period adjustment | NEEO AG
Business Acquisition [Line Items]
Purchase price	$ 11,000
Measurement period adjustment | NEEO AG
Business Acquisition [Line Items]
Deferred tax liability removed	1,700
After measurement period adjustment | NEEO AG
Business Acquisition [Line Items]
Purchase price	$ 14,500

Acquisitions (Consideration Tra

Acquisitions (Consideration Transferred) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Feb. 01, 2019	Dec. 31, 2018
Payments to acquire businesses modified by measurement period adjustments
Cash		$ 445
Accounts receivable		17
Inventory		577
Other assets acquired		542
Intangible assets		6,384
Goodwill	$ 31,403	9,242	$ 21,530
Total assets acquired		17,207
Accounts payable		758
Accrued liabilities		1,478
Pension liability		488
Total net assets acquired		$ 14,483

Acquisitions (Pro Forma Informa

Acquisitions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Feb. 01, 2019
Acquired inventory and fixed assets			$ 17,207
NEEO AG
Revenue	$ 60,447	$ 59,306
Income (loss) from operations	(3,242)	(247)
Net income (loss)	$ (2,386)	$ (241)
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.09)	$ (0.01)
Diluted (in dollars per share)	$ (0.09)	$ (0.01)

Acquisitions (Identifiable Inta

Acquisitions (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands	Feb. 01, 2019	Mar. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill	$ 9,242	$ 31,403	$ 21,530
NEEO AG
Other
Net loss associated with acquisition		200
Acquisition related costs		$ 500
NEEO AG | Remote-control technology
Identifiable Intangible Assets
Acquired intangible assets	$ 5,800
Weighted average amortization period	5 years
NEEO AG | Other internally developed technology
Identifiable Intangible Assets
Acquired intangible assets	$ 600
NEEO AG | Other internally developed technology | Minimum
Identifiable Intangible Assets
Weighted average amortization period	2 years
NEEO AG | Other internally developed technology | Maximum
Identifiable Intangible Assets
Weighted average amortization period	3 years

Acquisitions (Distributor Acqui

Acquisitions (Distributor Acquisitions) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Feb. 01, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Inventory		$ 577
Other assets acquired		542
Goodwill	$ 31,403	$ 9,242	$ 21,530
Distributor acquisitions
Business Acquisition [Line Items]
Consideration transferred	1,400
Inventory	700
Other assets acquired	100
Goodwill	$ 600

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Business Combination - Goodwill
Balance at beginning of the period	$ 21,530
Current period acquisitions	9,874
Foreign currency translation adjustment	(1)
Balance at end of the period	$ 31,403

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Intangible assets
Gross Carrying Amount	$ 42,639	$ 36,575
Accumulated Amortization	(17,250)	(15,924)
Intangible assets, net	$ 25,389	20,651
Weighted average amortization period	7 years
Developed technology
Intangible assets
Gross Carrying Amount	$ 23,854	17,495
Accumulated Amortization	(11,251)	(10,145)
Intangible assets, net	$ 12,603	7,350
Weighted average amortization period	5 years 2 months 12 days
Customer relationships
Intangible assets
Gross Carrying Amount	$ 12,009	12,009
Accumulated Amortization	(4,424)	(4,050)
Intangible assets, net	$ 7,585	7,959
Weighted average amortization period	8 years 4 months 24 days
Trademark/trade name
Intangible assets
Gross Carrying Amount	$ 6,776	6,776
Accumulated Amortization	(1,575)	(1,434)
Intangible assets, net	$ 5,201	5,342
Weighted average amortization period	12 years
Non-competition agreements
Intangible assets
Gross Carrying Amount		295
Accumulated Amortization		$ (295)

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortization expense
Amortization of intangible assets	$ 1,620	$ 1,446
Cost of revenue
Amortization expense
Amortization of intangible assets	864	921
Research and development
Amortization expense
Amortization of intangible assets	259	28
Sales and marketing
Amortization expense
Amortization of intangible assets	$ 497	$ 497

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets (Amortization) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortization of finite-lived intangible assets
Remainder of 2019	$ 5,355
2020	6,051
2021	3,457
2022	3,243
2023	3,183
Thereafter	4,100
Intangible assets, net	$ 25,389	$ 20,651

Long-Term Obligations (Details)

Long-Term Obligations (Details) - USD ($) $ in Millions	Feb. 06, 2018	Mar. 31, 2019	Dec. 31, 2018
Long-Term Obligations
Maximum borrowing capacity		$ 40	$ 30
New credit facility
Long-Term Obligations
Outstanding borrowings		$ 0
Commitment fee for quarterly unused capacity (as a percent)	0.25%
Unused line of credit fee threshold	$ 15
Minimum | Prime Rate
Long-Term Obligations
Basis spread on variable rate (as a percent)		0.00%
Minimum | LIBOR
Long-Term Obligations
Basis spread on variable rate (as a percent)		2.50%
Maximum | Prime Rate
Long-Term Obligations
Basis spread on variable rate (as a percent)		0.25%
Maximum | LIBOR
Long-Term Obligations
Basis spread on variable rate (as a percent)		2.75%

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregated) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 60,425	$ 59,149
United States
Disaggregation of Revenue [Line Items]
Revenue	41,003	40,964
Canada
Disaggregation of Revenue [Line Items]
Revenue	5,171	5,264
All other international sources
Disaggregation of Revenue [Line Items]
Revenue	$ 14,251	$ 12,921
International revenue (excluding Canada) as a percent of total revenue	24.00%	22.00%

Revenue Recognition (Contract B

Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue Recognition
Accounts receivable, net	$ 30,316		$ 33,016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at the beginning of the period	1,529
Provision	8	$ 71
Write-offs	(291)
Balance at the end of the period	$ 1,246
Payment term, general requirement for payment	30 days
Balance at the beginning of the period	$ 8,699
Deferred revenue	4,593
Recognition of deferred revenue	(4,548)
Balance at the end of the period	$ 8,744

Revenue Recognition (Performanc

Revenue Recognition (Performance obligation) (Details) $ in Millions	Mar. 31, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue	$ 9.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	12 months
Percentage expected to be recognized	44.00%
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	4 years

Equity Compensation (Activity)

Equity Compensation (Activity) (Details) - Stock options - $ / shares	Jan. 01, 2019	Mar. 31, 2019	Jun. 11, 2013
Shares Subject to Options Outstanding
Balance at the beginning of the period (in shares)	1,081,212	1,081,212
Exercised (in shares)		(32,010)
Expired (in shares)		(2,626)
Forfeited (in shares)		(1,336)
Balance at the end of the period (in shares)		1,045,240
Exercisable options (in shares)		1,010,354
Vested and expected to vest at the end of the period (in shares)		1,045,240
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 12.98	$ 12.98
Exercised (in dollars per share)		9.70
Expired (in dollars per share)		16.96
Forfeited (in dollars per share)		7.28
Balance at the end of the period (in dollars per share)		13.08
Exercisable options at the end of the period (in dollars per share)		13.21
Vested and expected to vest (in dollars per share)		$ 13.08
Weighted-Average Remaining Contractual Life
Exercisable options		4 years 4 months 24 days
Vested and expected to vest		4 years 4 months 24 days
2013 Plan
Stock options
Potential annual increase in shares authorized for issuance as a percentage of shares outstanding as of the preceding December 31			5.00%
Increase in number of shares authorized for issuance	1,325,845

Equity Compensation (Range) (De

Equity Compensation (Range) (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Options Outstanding
Number of Underlying Shares | shares	1,045,240
Options Exercisable
Number of Underlying Shares | shares	1,010,354
4.89-7.49
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 4.89
Range of Exercise Price, high end of range (in dollars per share)	7.49
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 6.22
Number of Underlying Shares | shares	269,614
Weighted-Average Remaining Contractual Life	2 years 4 months 24 days
Options Exercisable
Number of Underlying Shares | shares	267,480
Weighted-Average Remaining Contractual Life	2 years 3 months 18 days
8.16-12.93
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 8.16
Range of Exercise Price, high end of range (in dollars per share)	12.93
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 10.57
Number of Underlying Shares | shares	274,926
Weighted-Average Remaining Contractual Life	4 years 10 months 24 days
Options Exercisable
Number of Underlying Shares | shares	242,174
Weighted-Average Remaining Contractual Life	4 years 9 months 18 days
12.98-19.56
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 12.98
Range of Exercise Price, high end of range (in dollars per share)	19.56
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 15.60
Number of Underlying Shares | shares	270,481
Weighted-Average Remaining Contractual Life	5 years 7 months 6 days
Options Exercisable
Number of Underlying Shares | shares	270,481
Weighted-Average Remaining Contractual Life	5 years 7 months 6 days
20.91-22.92
Equity compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 20.91
Range of Exercise Price, high end of range (in dollars per share)	22.92
Options Outstanding
Weighted Average Exercise Price (in dollars per share)	$ 21.16
Number of Underlying Shares | shares	230,219
Weighted-Average Remaining Contractual Life	4 years 9 months 18 days
Options Exercisable
Number of Underlying Shares | shares	230,219
Weighted-Average Remaining Contractual Life	4 years 9 months 18 days

Equity Compensation (Fair Value

Equity Compensation (Fair Value) (Details) - Stock options - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock options
Total fair value for the awards vested during the period	$ 100
Intrinsic-value
Options Exercised	269	$ 2,765
Options Exercisable	4,757	15,335
Options Vested and Expected to Vest	$ 5,026	$ 17,203

Equity Compensation (Restricted

Equity Compensation (Restricted Stock Units) (Details) - Restricted stock units	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Equity Compensation
Shares withheld for tax purposes (in shares)	103,094
Issuance of shares net of shares withheld (in shares)	211,512
Number of shares
Non-vested balance at beginning of period (in shares)	824,365
Awarded	808,520
Vested	(314,606)
Forfeited	(9,002)
Non-vested balance at end of period (in shares)	1,309,277
Weighted Average Grant Date Fair Value
Non-vested balance at beginning of period (in dollars per share) | $ / shares	$ 19.77
Awarded (in dollars per share) | $ / shares	17.69
Vested (in dollars per share) | $ / shares	19.07
Forfeited (in dollars per share) | $ / shares	19.39
Non-vested balance at end of period (in dollars per share) | $ / shares	$ 18.66

Equity Compensation (401(k) Pla

Equity Compensation (401(k) Plan) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)shares
Defined Contribution Plan Disclosure [Line Items]
Maximum amount of employees' gross pay the employee may contribute (as a percent)	4.50%
Shares contributed (in shares) | shares	34,854
Expenses associated with contribution | $	$ 0.6
First 1% of employees' salary
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution (as a percent)	100.00%
Employees' gross pay for which the employer contributes a matching contribution (as a percent)	1.00%
Second 5% of employees' salary
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution (as a percent)	70.00%
Employees' gross pay for which the employer contributes a matching contribution (as a percent)	5.00%

Equity Compensation (Expense) (

Equity Compensation (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock options
Total stock-based compensation expense
Total stock-based compensation expense	$ 3,529	$ 3,335
Total unrecognized compensation cost related to non-vested stock option awards	$ 600
Weighted-average period over which unrecognized compensation cost will be recognized	3 months 18 days
Stock options | Cost of revenue
Total stock-based compensation expense
Total stock-based compensation expense	$ 78	68
Stock options | Research and development
Total stock-based compensation expense
Total stock-based compensation expense	1,287	1,084
Stock options | Sales and marketing
Total stock-based compensation expense
Total stock-based compensation expense	870	959
Stock options | General and administrative
Total stock-based compensation expense
Total stock-based compensation expense	1,294	$ 1,224
Restricted stock units
Total stock-based compensation expense
Total unrecognized compensation cost related to non-vested restricted stock units	$ 18,000
Weighted-average period over which unrecognized compensation cost will be recognized	2 years 3 months 18 days

Share Repurchases (Details)

Share Repurchases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Oct. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Number of common stock repurchased (in shares)	139,782	300,000
Value of common stock repurchased	$ 2,522	$ 7,448
Common stock authorized for repurchase			$ 13,600
Maximum
Equity, Class of Treasury Stock [Line Items]
Common stock authorized for repurchase			$ 20,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Taxes [Line Items]
Income tax benefit	$ 766	$ 116
Effective income tax rate (as a percent)	28.00%	14.00%
U.S. federal statutory rate (as a percent)	21.00%
State
Income Taxes [Line Items]
Net operating loss			$ 61,100
Tax credit carryforwards			2,800
Federal
Income Taxes [Line Items]
Net operating loss			57,100
Tax credit carryforwards			$ 6,400

Retirement Benefits (Details)

Retirement Benefits (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Retirement Benefits
Expected long-term rate of return on plan assets	1.50%
Service Cost	$ 50,000
Interest Cost	2,000
Expected Return on Plan Assets	(2,000)
Amortization of initial net obligation (asset)	7,000
Amortization of net (gain) loss	2,000
Net periodic benefit cost	59,000
Contributions by employer	172,000
Expected future employer contributions, remainder of 2019	$ 60,000

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	Mar. 31, 2019USD ($)
Related Party Transactions
Obligation due to related party	$ 0.2

Commitments and Contingencies (

Commitments and Contingencies (Details)	Mar. 31, 2019USD ($)claim
Purchase Commitments
Non-cancellable purchase commitments	$ 61,300,000
Indemnification agreements
Indemnification
Accrued liability	$ 0
Number of outstanding claims | claim	0

Subsequent Events (Details)

Subsequent Events (Details) - Wirepath Home Systems, LLC - Subsequent events $ / shares in Units, $ in Millions	May 08, 2019USD ($)$ / shares
Subsequent events
Proceeds from acquisition under Merger Agreement | $	$ 680
Business acquisition, share price | $ / shares	$ 23.91