NAPCO reports ‘amazing’ results

AMITYVILLE, N.Y. — NAPCO Security Technologies' fourth quarter financial results got a nice boost from recurring service revenue (RSR) and its Alarm Lock and Marks lines. 

The company reported RSR increased 27% to $20.3 million in the fourth quarter and 26% to $75.7 million for the year compared to the same periods the previous year. It reported gross margin for RSR increased to 90.4% and 90.5% for the quarter and the year, respectively, compared to 89% and 89%. 

“Our strategic focus continues to capitalize on key industry trends, including wireless, fire and intrusion alarms, (which is driving recurring service revenues); school security solutions; enterprise access control systems; and architectural locking products,” said Richard Soloway, chairman and CEO, who noted the fourth quarter was the 15th consecutive quarter of record sales. “At NAPCO, our management team is committed to prioritizing growth, profitability and returns on equity while effectively managing costs.”   

NAPCO reported net sales increased 13% to $50.3 million in the fourth quarter, the highest quarterly sales in the company's history, and 11% to $188.8 million for the year, another record, compared to the same periods the previous year. 

Soloway says the company’s locking hardware lines continue to see growth in school and classroom security, health care and retail loss-prevention, in addition to commercial and residential applications. Sales for these lines grew approximately 21% in the fourth quarter compared to the same period the previous year, and approximately 8% compared to the previous quarter. He said the lines now represent 71% of NAPCO hardware sales.  

“We continue to remain focused on further penetrating each of these markets,” he added. 

Other highlights for the quarter include the company’s introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home; and the decision to increase its quarterly dividend to $0.125 per share, payable on Sept. 24. 

"Fiscal 2024 was an amazing record-breaking year, but as I have said before, there is more work to be done,” Soloway said.