NAPCO’s Q2 financial results continue to prove strong as 2023 marches on

AMITYVILLE, N.Y. – The momentum shown in NAPCO’s first quarter fiscal results gives no sign of slowing down as the company presented its Q2 2023 fiscal results to investors on Feb. 6.

NAPCO continues to break records as its net sales for the quarter increased 27 percent to a Q2 record of $42.3 million as compared to $33.4 million for the same period last year. Their recurring service revenue (RSR) that the company attributed to much of their current success in the past few quarters increased 35 percent to $14.9 million as compared to $11 million for the same period last year. Recurring service revenue had a prospective annual run rate of approximately $59 million based on January 2023 recurring revenues.  (NAPCO is projecting that number to hit $150 million yearly by 2026).

“This is our ninth consecutive quarter of sales growth,” said NAPCO Security Technologies CEO Richard Soloway. “Recurring revenue continued to grow at a very strong rate and the annual run rate is now approximately $59 million based on January 2023 recurring revenues. Our balance sheet remains strong with our cash balance at $47.1 million and we have no debt.”

Soloway said that the company continues to focus on key industry trends like wireless fire and intrusion alarms, school security solutions, enterprise access control systems, and architectural locking products. CFO Kevin Buchel attributed the growth in the company’s products sales to be driven by increases to the commercial and fire alarm business. The company also pointed to school security as continuing to be a top priority for the company saying that, “…the need for improved security measures is greater than ever, “ and “As such, our fully integrated technologies for school security continues to remain a top priority for NAPCO and we remain focused on further penetrating this market.”

Soloway concluded the presentation by welcoming a new member to the company’s board of directors. "Finally, I am pleased to announce that David Paterson, the Governor of New York from March 2008 until January 2011, has joined our Board of Directors,” he said. “David has vast experience in crime and security issues and is an outspoken advocate of safety by combatting crime traditionally and with new methods and systems. He will bring his unique perspectives to NAPCO as we plan for the future growth and success of the company."

The full release and an archive of the webcast can be found online at investor.napcosecurity.com.