NAPCO Security Systems Inc. announced financial results for its first quarter ended Sept. 30.
Net sales remained relatively constant at $13.9 million as compared to $14 million for the same period last year. Net income for the quarter decreased 61 percent to $374,000 or $0.02 per fully diluted share as compared to $952,000 or $0.05 per fully diluted share for the same period last year.
Sales for the quarter reflected minor increases in intrusion-related sales as offset by moderate decreases in the access control products. Gross margins decreased to 37 percent in the current quarter as compared to 39.6 percent in the same quarter last year.
The company attributed the decrease in gross margins “primarily to lower production levels and an associated decrease in overhead absorption rates in the first three months of fiscal 2007 as compared to the same period in fiscal 2006.”
“Over the years, the first quarter has historically been our softest, with sales increasing in the second and third quarters and peaking in the forth quarter,” says Richard Soloway, chairman and president. “While I expect the sales to improve throughout the balance of fiscal 2008, I was also encouraged by the improvement shown this quarter in the intrusion sales.”
