NAPCO reports record-breaking revenues for Q3 of fiscal 2024

AMITYVILLE, N.Y.—NAPCO Security Technologies has announced record-breaking financial results for its third quarter of fiscal 2024.

The New York-based manufacturer and designer of high-tech electronic security equipment and wireless communication devices for intrusion and fire alarm systems, as well as provider of school safety solutions, posted its 14th consecutive record-breaking quarter for sales during Q3.

Net sales for Q3 increased 13% to $49.3 million - the highest quarterly sales in the company's history - as compared to $43.5 million for the same period last year. In addition, recurring service revenue (RSR) for the quarter increased 29% to $19.5 million - representing 40% of total revenue - as compared to $15.1 million for the same period last year.

Other financial highlights in NAPCO’s Q3 earnings report featured net income increasing 38% to a quarterly record $13.2 million as compared to $9.5 million for the same period a year ago, and adjusted EBITDA for the quarter increasing 37% to a quarterly record $15.6 million as compared to $11.3 million for the same period last year.

"The third quarter of fiscal 2024 was the strongest quarter in our company's history,” said NAPCO Chairman and CEO Richard Soloway. “NAPCO's record-breaking results for Q3 of fiscal year 2024 was primarily the result of the continued growth and profitability from recurring revenues, as well as the strong sales from our Alarm Lock and Marks locking product lines. Radio sales in Q3 improved over Q2, increasing by approximately 2%. We expect radio sales to continue to be a key contributor to our hardware sales and continue to lead to the continued growth of our highly profitable recurring revenues."

Soloway noted that NAPCO’S Alarm Lock and Marks locking hardware lines continue to see growth in school and classroom security, healthcare, and retail loss-prevention, as well as in multi-dwelling commercial and residential applications. “Locking sales in Q3 grew approximately 16% compared to last year and approximately 10% compared to Q2 and represents 66% of hardware sales,” he noted. “We continue to remain focused on further penetrating each of these markets.”

NAPCO also recently introduced Prima, an all-in-one panel for security, fire, video, and the connected home. “Our goal is for Prima to address an important mass segment of the security market, including residential and small business systems,” the CEO said. “With built-in Wi-Fi/cellular radio communications, customer alert notifications, and video and smart home subscription options for each installed system, the security dealer, as well as the company, can add more recurring-revenue generating accounts.”

Soloway concluded, "We are nine months through fiscal 2024 and while we have already generated net income of $36.3 million, there is more work to be done. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technical superiority, and strong profitability, for the balance of fiscal 2024 and beyond.”

You can find the full release of NAPCO’s Q3 fiscal 2024 results at investor.napcosecurity.com.