Business
NAPCO Announces Preliminary Third Fiscal Quarter 2020 Results
-Sales Increase 4% to a Third Fiscal Quarter Record $26.2 Million- -23rd Consecutive Quarter of Year-Over-Year Record Sales- -Recurring Service Revenues Grew
About this update from Napco Security Technologies, Inc.
[{"type":"text","content":"-Sales Increase 4% to a Third Fiscal Quarter Record $26.2 Million-\n -23rd Consecutive Quarter of Year-Over-Year Record Sales-\n -Recurring Service Revenues Grew 38% to $6.2 Million-\n\n\nAMITYVILLE, N.Y., April 7, 2020 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the world's leading manufacturers of high-tech electronic security devices that are fueling the Company's fast growing recurring service revenues, as well as a leading provider of school safety solutions, today announced preliminary sales results for its third fiscal quarter ended March 31, 2020.\nHighlights:\nNet sales for the quarter increased 4% to a third quarter record $26.2 million as compared to $25.1 million for the same quarter last year. Net sales for the nine months increased 7% to $78.4 million as compared to $73.3 million for the same period last year. Recurring service revenue for the quarter increased 38% to $6.2 million as compared to $4.5 million for the same quarter last year. Recurring service revenue for the nine months increased 38% to $17.3 million as compared to $12.5 million for the same period last year. Recurring service revenue now has a prospective annual run rate of $25.4 million based on March 2020 recurring revenues. As of March 31, 2020, the Company had approximately $10 million cash on hand and $11 million available under its revolving line of credit.Richard Soloway, Chairman and President, commented, \"While we do not typically provide a business update outside of our normal quarterly cadence, we recognize these are not normal times. Given the unprecedented impact of COVID-19 on the entire world, we believe this information is warranted. As we continue to navigate this public health crisis, we have decided to provide our preliminary third quarter sales results, including recurring service revenues. \nWe have also decided to provide some insight into operations at this time. Our Company remains open for business and we continue to provide security equipment to our distributors, dealers and integrators nationwide. Despite what has been going on globally our Company was still able to generate a 4% increase in sales for Q3. We are extremely proud of the Company's increased sales levels despite the uncertain business environment during the quarter. Our preliminary sales, particularly with respect to hardware ship...