Napco Misses Q4 EPS by 2 Cents, Beats on Revenues
Napco reported its net sales for the fiscal year were a record $87.4 million, up 6% from the same period last year.
AMITYVILLE, N.Y. — Napco Security Technologies (Nasdaq: NSSC) reported Tuesday that its net income for the fiscal fourth quarter dipped 6% compared to the same period last year, although the company said its net sales were up.
Napco, based here, reported net income of $3.2 million, down from $3.4 million for the same period a year ago. Net sales for the quarter ended June 30 increased 7% to $25.7 million.
For the year, the company reported profit of $5.6 million, or 30 cents per share. Revenue was reported as $87.4 million. The company reported 17 cents earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of 19 cents.
Financial highlights include:
- Net sales for the fiscal year were a record $87.4 million, up 6% from the same period last year. Net sales for the fourth quarter were $25.7 million, up 7% from the same quarter last year.
- Recurring revenue for the fiscal year increased 65% and now has an annual run rate of $9.7 million based on June 2017 recurring revenue.
- Income before taxes for fiscal 2017 increased 2.5% to $6.3 million from $6.1 million a year ago.
- Debt, net of cash was reduced to zero as of June 30.
“Our growing sales momentum demonstrates that increased investments in R&D, selling and marketing expenses are having a positive impact on our revenue, while still maintaining the fiscal discipline required to reduce our debt, net of cash, to zero,” Richard Soloway, president and CEO of Napco, said in a news release. “We believe the elevated engineering and marketing expenditure levels in fiscal 2017 will not increase significantly in fiscal 2018, which should greatly enhance our profitability as our fiscal 2017 investments generate higher sales in fiscal 2018 and beyond.”
Napco is a leading manufacturer of electronic security, including recurring revenue, connected home, video surveillance, fire alarm, access control and door-locking systems. The company consists of four divisions: Napco, its security and connected home segment, plus three wholly-owned subsidiaries, Alarm Lock, Continental Instruments and Marks USA.
Napco’s stock price has a 12-month low of $6.39 and a 12-month high of $10.95. The company has a 50-day moving average price of $8.70 and a 200 day moving average price of $9.44.
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