Business
NAPCO Announces First Quarter Fiscal 2023 Results
-1st Quarter Sales Increase 27% to a Q1 Record $39.5 Million- -1st Quarter Recurring Service Revenues Increase 35% to $13.8 Million With Gross Margins of 88%-
About this update from Napco Security Technologies, Inc.
[{"type":"text","content":"-1st Quarter Sales Increase 27% to a Q1 Record $39.5 Million-\n-1st Quarter Recurring Service Revenues Increase 35% to $13.8 Million With Gross Margins of 88%-\n-Net Income of $6.4M and Adjusted EBITDA* of $8.3 Million for the Quarter-\nAMITYVILLE, N.Y., Nov. 7, 2022 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a leading provider of school safety solutions, today announced financial results for its first quarter of fiscal 2023.\nFinancial Highlights: \nNet sales for the quarter increased 27% to a Q1 record of $39.5 million as compared to $31.1 million for the same period last year.Recurring service revenue (\"RSR\") for the quarter increased 35% to $13.8 million as compared to $10.2 million for the same period last year. Recurring service revenue now has a prospective annual run rate of approximately $58 million based on October 2022 recurring revenues.Gross margin for recurring service revenue for the quarter was 88% as compared to 86% for the same period last year.Net income for the quarter was $6.4 million as compared to $7.8 million for the same period a year ago. Net income for Q1 last year benefited from $3.9 million of Other income as the result of extinguishment of debt.Earnings per share (diluted) for the quarter was $0.17 as compared to $0.21 for the same period a year ago. Of the $0.21 reported EPS for last years Q1, $0.11 was a result of the extinguishment of debt.Adjusted EBITDA* for the quarter was $8.3 million as compared to $4.7 million for the same period a year ago, a 77% increase.Adjusted EBITDA* per share (diluted) for the quarter was $0.22 as compared to $0.13 for the same period a year ago, a 69% increase.Cash and cash equivalents, other investments and marketable securities were $44.4 million at September 30, 2022, a 5% decrease as compared to $46.8 million at June 30, 2022. The Company had no debt as of September 30, 2022.Cash (Used in) Provided by Operating Activities for the three months was $(2.0) million as compared to $3.5 million for the same period last year. This decrease was primarily due to Inventories increasing by $14.1 million, resulting primarily from the Company's decision to purchase hard to g...