Group 1 - A class action lawsuit has been filed against Napco Security Technologies, Inc. for alleged securities fraud and unlawful business practices [2][4]. - Investors have until June 24, 2025, to request appointment as Lead Plaintiff if they purchased Napco securities during the Class Period [2]. - Napco reported a significant decline in hardware sales attributed to reduced sales from two major distributors, leading to the withdrawal of its long-term 45% EBITDA margin target [4]. Group 2 - Following the announcement of the financial results, Napco's stock price dropped by $9.77 per share, or 26.62%, closing at $26.93 per share on February 3, 2025 [4].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 decreased by 10.8% to $44 million compared to $49.3 million in Q3 2024 [11] - Net income for Q3 2025 decreased by 23.3% to $10.1 million, or $0.28 per share, compared to $13.2 million, or $0.36 per share, in the same period last year [20] - Adjusted EBITDA for Q3 2025 decreased by 15.4% to $13.2 million, equating to a margin of 30% [22] - The company remains debt-free with cash and cash equivalents totaling $89.3 million as of March 31, 2025 [23] Business Line Data and Key Metrics Changes - Recurring monthly service revenue grew by 10.6% in Q3 to $21.6 million, up from $19.5 million in Q3 2024 [12] - Equipment sales for Q3 decreased by 24.8% to $22.4 million compared to $29.7 million in the same period last year [12] - Gross profit for recurring service revenue increased by 9.5% to $19.6 million, maintaining a gross margin of 91% [15] Market Data and Key Metrics Changes - The company reported that recurring service revenue accounted for 49% of total revenue in Q3 2025 [26] - The annualized run rate for recurring service revenue increased to approximately $89 million based on April 2025 results, up from $86 million in January 2025 [27] Company Strategy and Development Direction - The company is focused on accelerating innovation and expanding its product development pipeline, which is described as the strongest ever [9] - New product lines, including cloud-based solutions, are being introduced to enhance recurring revenue opportunities [27] - The company aims to penetrate markets such as school security, healthcare, and retail loss prevention [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite external challenges, emphasizing the resilience of the operating model [26] - The company anticipates continued growth in recurring revenue, particularly from the Starlink line of products [27] - Management noted that the security industry remains robust despite economic uncertainties, with ongoing demand for security solutions [78][80] Other Important Information - The company plans to issue a quarterly dividend of $0.14 per share, reflecting a sequential increase [33] - The company has engaged in significant stock buybacks, spending $18.8 million in Q3 and $36.7 million for the nine months [25] Q&A Session Summary Question: Can you discuss the mix of hardware capable of generating recurring services revenue? - The recurring revenue primarily comes from Starlink radios, with new advanced products introduced at ISC West [35] Question: What are you seeing in terms of quoting activities for projects? - Sell-through stats are encouraging, with increases in various segments, indicating improved demand [44] Question: Can you provide more detail on the weakness in the locking products area? - The weakness is attributed to tariff-driven issues and inventory management by distributors [54] Question: How sensitive is the demand for security systems to economic downturns? - The company believes its business is recession-resistant, as security needs persist regardless of economic conditions [80] Question: What is the magnitude of the price increases announced? - An 8.5% surcharge was implemented to cover tariff costs, with a typical annual price increase expected in July [89]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Napco Security Technologies, Inc. regarding a class action lawsuit due to alleged misleading statements about the company's growth and hardware sales performance [1]. Summary by Sections Allegations - The complaint alleges that Napco's management provided investors with optimistic projections about the company's growth and strength in its hardware division, claiming confidence in achieving fiscal 2026 growth targets based on expected demand for hardware products [1]. - On February 3, 2025, Napco reported a significant decline in hardware sales, attributing this to reduced sales from two major distributors, which led to a retraction of their long-term EBITDA margin target of 45% [1]. - Following the announcement, Napco's stock price plummeted from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in one day [1]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action by June 24, 2025, to potentially become lead plaintiffs [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle, with no cost or obligation to participate [2]. About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit, fraud, and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions that inflated stock prices [3].

Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased securities of NAPCO Security Technologies, Inc. during the specified Class Period, alleging misleading statements regarding the company's revenue outlook and growth potential [1][5]. Group 1: Lawsuit Details - The class action lawsuit covers purchasers of NAPCO securities from February 5, 2024, to February 3, 2025 [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - The lawsuit claims that NAPCO made false and misleading statements about its revenue projections and growth, which led to investor damages when the truth was revealed [5]. Group 2: Next Steps for Investors - Interested investors can join the class action by visiting the provided link or contacting the law firm directly [3][6]. - A lead plaintiff must be appointed by June 24, 2025, to represent the class in the litigation [1][3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest against a Chinese company at the time [4]. - The firm has consistently ranked highly in securities class action settlements and has recovered hundreds of millions for investors [4].

Core Viewpoint - Napco Security Technologies, Inc. is facing a class action lawsuit due to alleged securities fraud that negatively impacted investors between February 5, 2024, and February 3, 2025 [1][2] Company Performance - The lawsuit claims that the defendants misled investors regarding Napco's expected growth and strength in its hardware division, asserting confidence in achieving fiscal 2026 growth projections [2] - On February 3, 2025, Napco reported a significant decline in hardware sales, attributing the drop primarily to reduced sales from two major distributors [2] - Following the disappointing financial results, Napco retracted its long-term EBITDA margin target of 45%, stating uncertainty about achieving this goal by the end of fiscal 2026 [2] Stock Market Impact - Napco's stock price experienced a dramatic decline from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decrease of approximately 26.62% in just one day [2] Legal Proceedings - Investors who suffered losses during the specified timeframe have until June 24, 2025, to request appointment as lead plaintiff in the class action [3] - Participation in the lawsuit does not require any out-of-pocket costs or fees for class members [3] Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4]

Core Viewpoint - A class action securities lawsuit has been filed against Napco Security Technologies, Inc. due to alleged securities fraud affecting investors between February 5, 2024, and February 3, 2025 [1] Company Performance - The lawsuit claims that the defendants misled investors regarding Napco's expected growth and strength in its hardware division, asserting confidence in achieving fiscal 2026 growth projections [2] - On February 3, 2025, Napco reported a significant decline in hardware sales for the second quarter of fiscal 2025, attributing the drop primarily to reduced sales from two major distributors [2] - Following the disappointing financial results, Napco retracted its long-term EBITDA margin target of 45%, stating uncertainty about achieving this goal by the end of fiscal 2026 [2] - Napco's stock price plummeted from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in just one day [2] Legal Proceedings - Investors who suffered losses during the specified timeframe have until June 24, 2025, to request appointment as lead plaintiff in the lawsuit [3] - Class members may be entitled to compensation without incurring any out-of-pocket costs or fees [3] Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]

Core Viewpoint - The Gross Law Firm is notifying shareholders of Napco Security Technologies, Inc. about a potential class action lawsuit due to significant declines in the company's stock price following disappointing financial results and revised growth projections [1][3]. Summary by Sections Class Action Notice - Shareholders who purchased shares of Napco Security Technologies (NASDAQ: NSSC) during the specified class period (February 5, 2024, to February 3, 2025) are encouraged to contact the Gross Law Firm for possible lead plaintiff appointment [1][3]. Allegations - The complaint alleges that the defendants provided misleading information regarding Napco's expected growth and strength in its hardware division. They expressed confidence in achieving fiscal 2026 growth projections based on demand for hardware products [3]. - On February 3, 2025, Napco reported a significant decline in hardware sales, primarily due to reduced sales from two major distributors. Consequently, the company retracted its long-term 45% EBITDA margin target, stating uncertainty about achieving it by the end of fiscal 2026 [3]. - Following this announcement, Napco's stock price plummeted from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in one day [3]. Next Steps for Shareholders - Shareholders are advised to register for the class action by June 24, 2025, to participate in the case without any cost or obligation. Registered shareholders will receive updates through a portfolio monitoring software [4]. Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit, fraud, and illegal business practices. The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Napco Security Technologies, Inc. regarding a class action lawsuit due to alleged misleading statements about the company's growth and hardware sales performance [1]. Group 1: Allegations and Financial Impact - The lawsuit alleges that Napco's management provided investors with optimistic projections about the company's growth and hardware division strength, claiming confidence in achieving fiscal 2026 growth targets [1]. - Following the announcement of a significant decline in hardware sales attributed to reduced sales from two major distributors, Napco retracted its long-term EBITDA margin target of 45%, stating uncertainty about achieving it by the end of fiscal 2026 [1]. - Napco's stock price experienced a dramatic decline of approximately 26.62%, dropping from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, in just one day [1]. Group 2: Class Action Participation - Shareholders who purchased shares of NSSC during the specified class period are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for June 24, 2025 [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the lifecycle of the case, with no cost or obligation to participate [2]. Group 3: Law Firm's Mission - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit, fraud, and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions that inflated stock prices [3].

Core Viewpoint - A class action lawsuit has been filed against Napco Security Technologies, Inc. for allegedly misleading investors about its growth projections and sales performance during the specified period [1][2]. Allegations - The lawsuit claims that Napco failed to disclose its true ability to forecast product demand and its negotiating position with distributors, leading to inflated long-term growth projections [2]. - Napco attributed its declining hardware sales to one-off setbacks, while the complaint argues that the company's forecasting processes were inadequate [2]. Financial Impact - On February 3, 2025, Napco reported disappointing financial results for Q2 of fiscal 2025, showing a significant drop in hardware sales [3]. - Following this announcement, Napco's stock price fell from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in one day [3]. Class Action Participation - Shareholders interested in serving as lead plaintiffs must file their papers by June 24, 2025, but participation is not required to be eligible for recovery [4]. - The law firm Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5].

Company Overview - NAPCO Security Technologies, Inc. is a leading designer and manufacturer of high-tech electronic security devices and services, including intrusion, fire alarm, access control, and locking systems [3] - The company is also a prominent provider of school safety solutions and operates through four divisions: NAPCO and three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA [3] - NAPCO's products are widely installed by security professionals across various sectors, including commercial, industrial, institutional, residential, and government applications [3] Financial Results Announcement - NAPCO Security Technologies will release its financial results for the Fiscal Third Quarter 2025, which ended on March 31, 2025, on May 5, 2025, before the market opens [1] - Following the financial results announcement, a conference call for analysts and investors is scheduled for 11 A.M. ET on the same day [1] Investor Participation - The conference call will be webcast, and interested parties can participate via the Investor Relations section of the company's website or by dialing specific phone numbers [2] - A replay of the webcast will also be available on the company's Investor Relations website [2]