NAPCO Reports 158% Net Income Increase for 2Q Financial Earnings

NAPCO Security Technologies reported a net sales of $19.6 million for its second quarter results.

AMITYVILLE, N.Y. – NAPCO Security Technologies (NASDAQ: NSSC), has reported $951,000, or $0.05 per share, for its second fiscal quarter ending Dec. 31, 2014, an increase of 158% compared to$368,000, or $0.02 per share, for the same quarter last year.

The company reported net sales of $19.6 million, an increase of 7% compared to the same quarter in the previous year. NAPCO’s results also beat analysts’ expectations, which estimated that the firm would post $18.4 million in net sales, Sleek Money reports.

“This past quarter’s performance reflected exceptional synergies across the Company’s Divisions and operational efforts,” NAPCO Security Technologies Chairman and President Richard Soloway says. “From the investments we’ve made in driving our recurring revenue generating and high-margin product lines, to efficient improvements in our overall gross margin, these have all come together to deliver a nice increase in both sales and profit.”

RELATED: Security Posts a Positive Year for Investors, Again

The firm reported that sales for its access control product increased 23% in the second quarter, compared to the same quarter a year ago, while sales of intrusion products increased 12% for the quarter.

Recurring revenue for NAPCO’s Alarm Division rose 53%, and grew sequentially by 9%, according to the company.

“Our integrated access control and wireless locking solution, marketed by our Continental and Alarm Lock Divisions, continues to drive exceptional sales growth in the higher education vertical,” Soloway explains. “We saw a large sale and installation of our integrated access control solution sold to a major Midwestern college [in the second quarter]. This product solution has been a success because by combining traditional campus-wide access control, with more cost-effective wireless locking access points.”

The company also reported that the gross margin improved 350 basis points to 31.2% for the quarter as compared to 27.7% for the same quarter last year.

Income before taxes for the quarter increased by 147% to $1,039,000 as compared to $420,000 last year, the company reports.

Debt, net of cash, has been reduced by $26.6 million from $35.9 million to $9.3 million since acquiring Marks in August of 2008, according to the company.

“We continue to demonstrate our substantial earnings power and the ability to execute our strategy of rolling out new, recurring revenue products that reduce seasonality in our business and drive a higher margin revenue mix,” Soloway says. “Our excellent second quarter performance is indicative of NAPCO’s operating leverage and gives us confidence as we move into the seasonally strong second half of the year.”

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.

A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!

Subscribe Today!

Get Our Newsletters