Business
NAPCO Announces Second Quarter Fiscal 2023 Results
-2nd Quarter Net Sales Increase 27% to a Q2 Record $42.3 Million--2nd Quarter Recurring Service Revenues Increase 35% to $14.9 Million With Gross Margins of
About this update from Napco Security Technologies, Inc.
[{"type":"text","content":"-2nd Quarter Net Sales Increase 27% to a Q2 Record $42.3 Million--2nd Quarter Recurring Service Revenues Increase 35% to $14.9 Million With Gross Margins of 89%--Quarterly Record Net Income of $8.4M and Adjusted EBITDA* of $10.3 Million -\nAMITYVILLE, N.Y., Feb. 6, 2023 /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 second quarter of fiscal 2023.\nFinancial Highlights: \nNet sales for the quarter increased 27% to a Q2 record of $42.3 million as compared to $33.4 million for the same period last year.Recurring service revenue (\"RSR\") for the quarter increased 35% to $14.9 million as compared to $11.0 million for the same period last year. Recurring service revenue had a prospective annual run rate of approximately $59 million based on January 2023 recurring revenues.Gross margin for recurring service revenue for the quarter was 89% as compared to 87% for the same period last year.Net income for the quarter was a quarterly record $8.4 million as compared to $1.0 million for the same period a year ago.Earnings per share (diluted) for the quarter was $0.23 as compared to $0.03 for the same period a year ago.Adjusted EBITDA* for the quarter was a quarterly record $10.3 million as compared to $3.1 million for the same period a year ago, a 232% increase.Adjusted EBITDA per share (diluted)* for the quarter was $0.28 as compared to $0.08 for the same period a year ago, a 250% increase.Cash and cash equivalents, other investments and marketable securities were $47.1 million at December 31, 2022 as compared to $46.8 million at June 30, 2022, a 1% increase. The Company had no debt as of December 31, 2022.Cash Provided by Operating Activities for the six months ended December 31, 2022 was $1.1 million as compared to $7.8 million for the same period last year. This decrease was primarily due to Inventories increasing by $14.8 million, resulting primarily from the Company's decision to purchase hard to get parts used in products that generate recurring service revenues for the Company.Richard Soloway, Chairman and President, commented, \"The strong sales and p...