SecurityWorldMarket

12/02/2019

Napco results show record sales

Amityville, NY

Napco Security Technologies, Inc. has announced financial results for its second fiscal quarter ended December 31, 2018.

Net sales for the quarter increased 18% to a second quarter record $24.8 million as compared to $21.1 million for the same quarter last year. Net sales for the six months increased 14% to $48.2 million, as compared to $42.3 million for the same period last year.   Net income for the quarter increased 133% to a second quarter record of $2.9 million from $1.2 million a year ago. Net income for the six months increased 106% to $4.4 million from $2.1 million a year ago.

Richard Soloway, Chairman and President commented, "This past quarter saw our Company reach record milestones in both sales and profits and we were particularly encouraged by our ability to continue to build upon and expand our stable of RSR (recurring service revenue) generating product offerings. Our strategic targeting of high-growth, professionally-installed, primarily commercial markets, such as wireless fire and intrusion alarm communicators, fire alarm control panels, school security products, IoT smart business/home solutions and access control locking products, has supplied us with the necessary fuel required for incremental future growth.

The Starlink line of universal fire alarm, intrusion alarm and IoT communicators, now comprising the most full-featured and extensive assortment of alarm communication solutions in the industry, has become a major entrant in the Wireless Cellular Alarm Communicator Category, contributing a $17.2 million annual run rate of RSR income, to Napco. The recent launch of Starlink Verizon LTE fire, intrusion and IoT communicators, solidifies our position in the category by offering, state-of-the-art hardware solutions on todays most advanced LTE communication network. With the millions of fire and intrusion alarm panels, currently communicating vital alarm signals via soon-to-be-obsolete, hard-wired landlines, needing a wireless communicator upgrade to continue reporting, we see good prospects for considerable, vibrant sales growth, for the Starlink product line, going forward."

Mr. Soloway continued, "In early Q1, NAPCO launched our innovative all-in-one Firelink, 8-32 zone fire alarm control panel with a built-in cellular LTE, StarLink-powered alarm communicator. Driving considerable savings in installation labor, time and money, Firelink comes pre-configured and pre-activated enabling our dealers to easily replace and upgrade an aging landline-connected fire panel or conduct a new turn-key installation which meets, up-to-date fire code communication requirements. As recognition of its breakthrough technology, Firelink was awarded the prestigious ESX Innovation Award at the 2018 Electronic Security Expo, in Nashville, Tennessee.

This past quarter, our universal Starlink Connect IoT cellular communicator, which can be installed to upgrade virtually any of the millions of existing, traditional alarm panels already in the field, to add on connected home or connected business services, continued to experience strong growth. The RSR-generating Starlink Connect enables our dealers to trade up their current security-only customers to a variety of app-driven, remote device-operated services such as control of their security system, lighting, locks, thermostats, garage door and video camera/doorbell. The recently launched, Napco Ibridge Video Doorbell, which lets consumers know who is at the door and speak to them, real-time, remotely, from any smartphone or smart device, can also be added to any Starlink Connect IoT installation, to generate incremental RSR."


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