Control4 Can Financially Bear Tariffs, Considers Changing Sourcing; Stock Up After Q2
Control4 can financially handle the Trump administration's planned tariffs on Chinese goods that concern some tech companies (see 1808030034), executives said Thursday. Friday, the stock closed up 20.6 percent to$31.67after reporting record revenue and net income in Q2. Chief Financial…
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Officer Mark Novakovich said the company will absorb and offset the impact of planned tariffs and doesn’t plan to change product pricing this year, partly due to lower tax rates. “We will continue to ... explore all options available to reduce the impact.” The home automation company is exploring many sourcing options or scenarios, Novakovich said. He said it's too early to make a decision because of costs associated with changes, and too soon to make long-term commitments "until we know more about the duration of some of these tariffs and the specific product classes that they are going to definitively impact." CEO Martin Plaehn confirmed his company is working with Apple for control of Apple TV over IP for a product resulting from the bigger company releasing application program interfaces to enable third-party companies to control media streamers.