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 ...

Financial Data and Key Metrics Changes - The company reported record sales of $42.3 million for fiscal Q2 2023, a 27% increase compared to $33.4 million in the same period last year [12][26] - Recurring monthly revenue grew by 35% to $14.9 million, up from $11 million year-over-year [27] - Net income for Q2 reached $8.4 million or $0.23 per diluted share, a 714% increase from $1 million or $0.03 per diluted share in the prior year [34] - Adjusted EBITDA for the quarter was $10.3 million or $0.28 per diluted share, a 232% increase compared to $3.1 million or $0.08 per diluted share last year [35] Business Line Data and Key Metrics Changes - Equipment sales increased by 23% to $27.4 million in Q2, compared to $22.4 million in the same period last year [45] - Gross profit for equipment sales increased 245% to $6.2 million with a gross margin of 23%, compared to $1.8 million and 8% margin last year [29] - Gross profit for recurring revenues increased 37% to $13.2 million with a gross margin of 89%, compared to $9.6 million and 87% margin last year [30] Market Data and Key Metrics Changes - The company noted that 80% of its business is commercial, making it highly recession-resistant [40] - The backlog remains at a higher-than-normal level but is decreasing, indicating strong demand for products [62] Company Strategy and Development Direction - The company is focusing on capitalizing on key industry trends such as wireless, fire and intrusion alarms, and school security solutions [24] - Management aims to achieve $150 million in recurring revenue and $150 million in equipment revenue by the end of fiscal 2026 [60] - The introduction of Air Access is expected to generate recurring revenue across all divisions, marking a significant opportunity for growth [79][167] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to replace old 3G radios with new 5G radios, anticipating increased sales and recurring revenue [41][61] - The supply chain constraints are easing, and the company expects improved equipment margins in the coming months [43] - The ongoing concerns about a potential recession are acknowledged, but the company remains optimistic about its recession-resistant business model [40] Other Important Information - The company has a strong balance sheet with $47.1 million in cash and no debt [13][38] - Research and development expenses increased by 12% to $2.2 million, reflecting ongoing investment in product development [16] Q&A Session Summary Question: Impact of Verizon 3G sunset on demand - Management noted that dealers who failed to act on the sunset are now scrambling to replace radios, which is expected to lead to increased sales and recurring revenue [82][88] Question: Redesign activities and gross margins - The company is working on redesigning its radio sourcing to improve gross margins, with expectations of noticeable improvements in Q3 and Q4 [70][85] Question: Backlog levels and visibility - Management confirmed that while backlog levels are decreasing, they remain historically high, and strong demand continues to drive new orders [108] Question: School security projects and equipment sales - The company highlighted that school security projects are contributing positively to equipment sales, with significant wins in large school districts [111][151]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ⌧ Number of shares outstanding of each of the issuer's classes of common stock, as of: November 4, 2022 COMMON STOCK, $.01 PAR VALUE PER SHARE 36, ...

November 2022 (NSSC:NASDAQ) Disclaimer Special Note on Forward-Looking Statements This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth drivers of Napco Security Technologies, Inc.'s (the "Company") business such as school secu ...

Napco Security Technologies, Inc. (NASDAQ:NSSC) Q1 2023 Earnings Conference Call November 7, 2022 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 Mike Walkley - Canaccord Genuity Jim Ricchiuti - Needham & Company Jaeson Schmidt - Lake Street Brain Ruttenbur - Imperial Capital Raj Sharma - B. Riley Operator Greetings an ...

Financial Data and Key Metrics Changes - The company reported record sales of $143.6 million for fiscal 2022, a 26% increase from $114 million in the previous year [10] - Net income for the quarter increased 36% to $7.5 million, or $0.20 per diluted share, compared to $5.5 million, or $0.15 per diluted share, for the same period last year [28] - Adjusted EBITDA for the quarter increased 29% to a record $9.3 million, or $0.25 per diluted share, compared to $7.2 million, or $0.20 per diluted share, for the same period last year [29] Business Line Data and Key Metrics Changes - Recurring monthly revenue grew 33% for Q4 to $12.7 million, compared to $9.5 million for the same period last year, and increased 36% for the fiscal year to $46 million [14] - Equipment sales in Q4 increased 18% to $30.5 million, compared to $25.9 million for Q4 last year, and for fiscal 2022, equipment sales increased 22% to $97.6 million [15] Market Data and Key Metrics Changes - The company noted that 80% of its business is commercial, particularly in the fire alarm sector, which is considered recession-resistant [37] - The backlog remains at historic highs, indicating strong demand for the company's products [41] Company Strategy and Development Direction - The company is focusing on key industry trends such as wireless fire and intrusion alarms, school security solutions, and enterprise access control systems [11] - The introduction of Air Access, a cellular-based access control system, is expected to generate recurring revenue and is seen as a $1 billion market opportunity [44][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching a recurring revenue goal of $150 million earlier than 2026, driven by strong sales of StarLink radios and the upcoming 3G sunset [38][51] - The management team is actively managing supply chain issues and expects improvements in equipment margins in the next six to nine months [40][54] Other Important Information - The company has a strong balance sheet with cash balances exceeding $46 million and no debt [11][30] - Research and development costs increased due to salary increases and additional staff, but decreased as a percentage of net sales due to record sales growth [22] Q&A Session Summary Question: How much of the 18% growth in the equipment business was price-driven? - Management indicated that price increases contributed about 3 to 4 points to the growth [65] Question: What are the expectations regarding component and expediting costs? - Management noted that supply chain prices are expected to persist through the end of the calendar year, with some improvements in logistics but not in component costs [67] Question: Can you provide more color on sell-through among larger channel partners? - Management confirmed strong sell-through statistics from key distributors, indicating strength in the business [71] Question: How is the backlog trending? - The backlog remains similar to the $10 million level mentioned last quarter, indicating strong demand [75] Question: How are vendors dealing with price pressures? - Management stated that vendors are trying to keep up with demand, and the company is actively working to secure components [84] Question: Can you comment on the traction for Air Access? - Management indicated that Air Access is in early stages and is expected to take about 18 months to become a significant contributor [108]

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, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities 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 ( ...

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, 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 11-2277 ...