Napco Security Technologies Revenues Rise in Q2

Recurring service revenue for the quarter increased 46% to $4.1 million as compared to $2.8 million for the same quarter last year.

AMITYVILLE, N.Y. — Napco Security Technologies (Nasdaq: NSSC) on Monday reported fiscal second-quarter net income of $2.9 million or 15 cents per share for the quarter ended Dec. 31, 2018. This compares with $1.23 million or 7 cents per share in last year’s second quarter.

Analysts had expected the company to earn 9 cents per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

Based here, the company revenue for the quarter rose 17.6% to $24.8 million from $21.1 million last year. Net sales for the six months increased 14% to $48.2 million, as compared to $42.3 million for the same period last year.

Recurring service revenue for the quarter increased 46% to $4.1 million as compared to $2.8 million for the same quarter last year and for the six months increased 46% to $7.9 million from $5.4 million last year. Recurring service revenue now has a prospective annual run rate of $17.2 million based on December 2018 recurring revenues.

Net income for the quarter increased 133% to a second quarter record of $2.9 million from $1.2 million a year ago. Net income for the six months increased 106% to $4.4 million from $2.1 million a year ago.

In press release, Napco Chairman and President Richard Soloway states the past quarter saw the company reach record milestones in both sales and profits. In particular he says the company is encouraged by its ability to continue to build upon and expand a portfolio of recurring service revenue-generating product offerings.

“Our strategic targeting of high-growth, professionally-installed, primarily commercial markets, such as wireless fire and intrusion alarm communicators, fire alarm control panels, school security products, IoT smart business/home solutions and access control locking products, has supplied us with the necessary fuel required for incremental future growth,” he says.

Napco shares have declined 2% since the beginning of the year. The stock has climbed 61% in the last 12 months.

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