-Net Sales for the Quarter Increase 13% to $49.3 Million- -Net Income for the Quarter Increases 38% to $13.2 Million- -Adjusted EBITDA* for the Quarter Increases 37% to $15.6 Million- -3rd Quarter Recurring Service Revenues Increase 29% to $19.5 Million With a Gross Margin of 92%- -Board Declares Quarterly Dividend of $0.10 per share- AMITYVILLE, N.Y., May 6, 2024 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security ...

-Executive Changes Aimed at Maintaining and Improving Recent Growth Trajectories- AMITYVILLE, N.Y., May 2, 2024 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced exciting changes aimed at bolstering its management team with new ...

AMITYVILLE, N.Y., May 1, 2024 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading designers and manufacturers of high-tech electronic security devices, wireless recurring communication services for intrusion, fire alarm, access control and locking systems as well as a leading provider of school safety solutions will release financial results for its Fiscal Third Quarter 2024 which ended March 31, 2024 on Monday May 6, 2024 before the market opens followed by a conference cal ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Napco (NSSC) . This company, which is in the Zacks Security and Safety Services industry, shows potential for another earnings beat.This security products and software company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for ...

[PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents NAPCO Security Technologies' unaudited condensed consolidated financial statements for the quarter ended December 31, 2023, including balance sheets, income statements, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$185.9 million** by December 31, 2023, driven by cash and inventory growth, with stockholders' equity rising to **$158.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $149,728 | $131,359 | | **Total Assets** | **$185,878** | **$166,654** | | **Total Current Liabilities** | $21,211 | $19,686 | | **Total Liabilities** | $27,894 | $26,485 | | **Total Stockholders' Equity** | **$157,984** | **$140,169** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales for the three months ended December 31, 2023, rose to **$47.5 million**, with net income surging to **$12.6 million** due to strong service revenue growth Three Months Ended December 31, (in thousands, except per share data) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Net Sales** | **$47,547** | **$42,314** | | Equipment Revenues | $29,007 | $27,434 | | Service Revenues | $18,540 | $14,880 | | **Gross Profit** | **$25,012** | **$14,354** | | **Operating Income** | **$13,805** | **$4,328** | | **Net Income** | **$12,610** | **$3,929** | | **Diluted EPS** | **$0.34** | **$0.11** | Six Months Ended December 31, (in thousands, except per share data) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Net Sales** | **$89,223** | **$81,807** | | Equipment Revenues | $53,398 | $53,121 | | Service Revenues | $35,825 | $28,686 | | **Gross Profit** | **$47,425** | **$28,920** | | **Operating Income** | **$25,360** | **$7,976** | | **Net Income** | **$23,088** | **$7,013** | | **Diluted EPS** | **$0.62** | **$0.19** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow for the six months ended December 31, 2023, significantly improved to **$18.7 million**, increasing cash and equivalents to **$47.3 million** Six Months Ended December 31, Cash Flow Summary (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $18,693 | $1,088 | | Net Cash Used in Investing Activities | ($1,454) | ($10,856) | | Net Cash (Used in) Provided by Financing Activities | ($5,883) | $45 | | **Net increase (decrease) in Cash and Cash Equivalents** | **$11,356** | **($9,723)** | | **Cash and Cash Equivalents - Ending** | **$47,311** | **$32,007** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, revenue disaggregation, stock options, and legal proceedings, highlighting strong growth in Services and Door locking devices - The company's business is primarily the manufacturing and design of electronic security devices, with significant growth driven by recurring service revenues from wireless communication services and school security products[14](index=14&type=chunk) Disaggregation of Revenues by Major Product Lines (in thousands) | Major Product Lines | Three months ended Dec 31, 2023 | Three months ended Dec 31, 2022 | Six months ended Dec 31, 2023 | Six months ended Dec 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Intrusion and access alarm products | $11,258 | $11,342 | $20,554 | $24,874 | | Door locking devices | $17,749 | $16,092 | $32,844 | $28,247 | | Services | $18,540 | $14,880 | $35,825 | $28,686 | | **Total Revenues** | **$47,547** | **$42,314** | **$89,223** | **$81,807** | - As of December 31, 2023, the company had no outstanding debt under its **$11.0 million** revolving line of credit, which expires in June 2024[72](index=72&type=chunk) - A class action lawsuit was filed against the company and certain officers on August 29, 2023, alleging securities fraud. The company intends to vigorously defend against the action[111](index=111&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong financial performance for the quarter, with **12.4% net sales growth**, expanded gross profit margin, and **$79 million** in liquidity [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Net sales grew **12.4%** to **$47.5 million** for the quarter, driven by service and door-locking products, with operating income surging **219.0%** Key Performance Metrics Comparison | Metric | Three months ended Dec 31, 2023 | Three months ended Dec 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Total net sales | $47,547,000 | $42,314,000 | 12.4% | | Service revenues | $18,540,000 | $14,880,000 | 24.6% | | Total gross profit | $25,012,000 | $14,354,000 | 74.3% | | Gross profit as a % of net sales | 52.6% | 33.9% | 55.2% | | Operating income | $13,805,000 | $4,328,000 | 219.0% | | Net income | $12,610,000 | $3,929,000 | 220.9% | - The significant increase in gross profit on equipment sales was attributed to lower costs of certain components compared to the prior year when the company was affected by global supply chain shortages[130](index=130&type=chunk) - Selling, general and administrative (SG&A) expenses increased primarily due to higher legal, advertising, and internal control enhancement costs, but decreased as a percentage of net sales from **18.4%** to **18.2%** for the quarter[133](index=133&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$79 million** in cash and equivalents, generating **$18.7 million** in operating cash flow, with no outstanding long-term debt - The company generated **$18.7 million** in cash from operations during the six months ended December 31, 2023, and believes its working capital and credit agreement are sufficient to fund operations for the next year[137](index=137&type=chunk) - Inventories increased by **$4.3 million** to **$52.6 million** at December 31, 2023, primarily to build up radio products and secure hard-to-source components to mitigate supply chain risks[139](index=139&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risks include interest rate changes and foreign currency fluctuations, with a **10%** USD/RD$ exchange rate change impacting annual operating income by **$940,000** - The company's primary market risks are interest rate changes on its debt and foreign currency exposure[143](index=143&type=chunk) - A **10%** strengthening or weakening of the U.S. dollar against the Dominican Peso (RD$) would result in an approximate annual change of **$940,000** in income from operations[144](index=144&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective as of December 31, 2023, due to three material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of December 31, 2023, due to material weaknesses in internal control over financial reporting[145](index=145&type=chunk) - Three material weaknesses were previously identified relating to: 1. Ineffective IT general controls over user access and change management 2. Deficiencies in the calculation of reserves for excess and slow-moving inventory 3. Inaccurate inventory costing and COGS calculations during the first three quarters of fiscal 2023[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - Remediation efforts are ongoing, including installing monitoring software for IT, enhancing inventory forecast reviews, and refining the component cost calculation methods. The material weaknesses are not yet considered fully remediated[151](index=151&type=chunk)[155](index=155&type=chunk) [PART II: OTHER INFORMATION](index=33&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) A class action lawsuit alleging securities fraud was filed on August 29, 2023, which the company intends to vigorously defend without recording a liability - A class action lawsuit was filed against the Company, its CEO, and CFO on August 29, 2023, alleging securities fraud related to public statements made between November 2022 and August 2023[111](index=111&type=chunk) - The Company has not recorded a liability for this litigation and intends to defend against the action vigorously[111](index=111&type=chunk)[112](index=112&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were identified for the period, remaining consistent with those disclosed in the Form 10-K for fiscal year ended June 30, 2023 - There has been no material change in the risk factors previously disclosed in the Company's Form 10-K for the fiscal year ended June 30, 2023[155](index=155&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits for the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - The exhibits filed with this report include: - Certifications from the CEO (Richard L. Soloway) and CFO (Kevin S. Buchel) - Section 1350 Certifications - Inline XBRL Instance Document and related taxonomy files[158](index=158&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File number: 0-10004 NAPCO SECURITY TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) Delaware 11-2277818 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended June 30, 2023 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | --- | | Title of each class | Symbol(s) | Name of each exchange on which registered | | Common Stock, par value $0.01 per share | NSSC | The Nasdaq Stock Market LLP | Securities regist ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File number: 0-10004 NAPCO SECURITY TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) Delaware 11-2277 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File number: 0-10004 NAPCO SECURITY TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) Delaware 11-2 ...

Napco Security Technologies, Inc. (NASDAQ:NSSC) Q2 2023 Earnings Conference Call February 7, 2023 11:00 AM ET Company Participants Patrick McKillop - Vice President, Investor Relations Richard Soloway - President and Chief Executive Officer Kevin Buchel - Executive Vice President and Chief Financial Officer Conference Call Participants Jim Ricchiuti - Needham & Company Brain Ruttenbur - Imperial Capital Raj Sharma - B. Riley Christopher Hillary - Roubaix Capital Operator Greetings, and welcome to NAPCO Secu ...