Core Viewpoint - Kahn Swick & Foti, LLC has initiated an investigation into NAPCO Security Technologies, Inc. following significant financial misstatements and a securities class action lawsuit against the company [1][3]. Financial Misstatements - NAPCO disclosed a material weakness in its internal controls over financial reporting for the first three quarters of fiscal 2023, leading to overstated inventories and understated cost of goods sold (COGS) [2]. - The company confirmed that net income was overstated by as much as 114.97%, income per share by 112.5%, operating income by 118.02%, and gross profit and gross margins by 35.59% [2]. Legal Proceedings - NAPCO is facing a securities class action lawsuit for failing to disclose material information, with the court recently denying the company's motion to dismiss the case [3]. - The investigation by KSF is focused on potential breaches of fiduciary duties by NAPCO's officers and/or directors, as well as violations of state or federal laws [3].

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Napco Security Technologies, Inc. ("Napco" or the "Company") (NASDAQ: NSSC) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Napco investors who were adversely affected by alleged securities fraud between February 5, 2024 and February 3, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/napco-securit ...

Core Viewpoint - Napco Security Technologies, Inc. is facing significant challenges, including a securities class action lawsuit and declining sales, which have raised concerns about its distribution network and forecasting capabilities [1][3][4]. Financial Performance - Napco reported a 10.8% year-on-year decline in sales, totaling $43.96 million for the third quarter of fiscal year 2025, despite beating Wall Street's revenue expectations [2][6]. - The company experienced a substantial 25% drop in equipment sales in the second quarter of fiscal 2025 compared to the previous year, leading to significant declines in gross margin and gross profit [6][7]. Legal Issues - A securities class action lawsuit has been filed against Napco, representing investors who purchased securities between February 5, 2024, and February 3, 2025, following a sharp decline in stock price due to disappointing earnings disclosures [3][4]. - The lawsuit alleges that Napco made false and misleading statements regarding its sales and forecasting practices, failing to disclose its inability to accurately predict demand for its products [4][5]. Market Reaction - Following the negative disclosures, Napco's stock price dropped by 26% in a single trading day, erasing $9.77 per share in value, prompting analysts to downgrade their ratings on the company [3][7]. - Hagens Berman, a securities litigation firm, is investigating potential securities fraud claims against Napco, emphasizing ongoing concerns about the company's ability to manage its distribution network and forecast demand accurately [8].

NEW YORK, May 07, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC). Shareholders who purchased shares of NSSC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/napco-security-technologies-inc-loss-submission-form/?id=147116&f ...

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 - Robbins LLP is investigating claims that Napco Security Technologies misrepresented its ability to meet fiscal 2026 growth projections, failing to disclose the true state of product demand forecasting and distributor negotiations [2]. - The complaint states that Napco made optimistic long-term projections while downplaying setbacks in hardware sales, which ultimately led to a decline in sales and failure to meet projections [2]. Financial Impact - On February 3, 2025, Napco announced disappointing financial results for Q2 of fiscal 2025, revealing a significant drop in hardware sales. Following this announcement, the stock price fell from $36.70 on January 31, 2024, to $26.93 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. Participation in the case is not required to be eligible for recovery [4]. Legal Representation - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless the case is won [5].

PLEASE CLICK HERE TO SUBMIT YOUR CONTACT INFORMATION NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP  ("Wolf Haldenstein") announces the filing of a class action lawsuit against Napco Security Technologies, Inc. (NASDAQ: NSSC). This action is on behalf of investors who purchased Napco securities between February 5, 2024, and February 3, 2025, inclusive (“Class Period”). The lawsuit alleges that Napco made misleading statements about its financial performance, leading to ...

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of securities of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) between February 5, 2024 and February 3, 2025, both dates inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than June 24, 2025. SO WHAT: If you purchased NAPCO securities during the Class Period you may be entitled to co ...

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Napco Security Technologies, Inc. ("Napco" or the "Company") (NASDAQ: NSSC) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Napco investors who were adversely affected by alleged securities fraud between February 5, 2024 and February 3, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/napco-securit ...

Financial Performance - Net sales decreased by 10.8% to $44.0 million for the three months ended March 31, 2025, and by 5.5% to $130.9 million for the nine months[134]. - Recurring service revenue increased by 10.6% to $21.6 million for the three months and by 15.4% to $63.9 million for the nine months[134]. - Total gross profit margin improved from 53.8% to 57.2% for the three months and from 53.4% to 56.7% for the nine months[134]. - The overall gross profit for the nine months increased by $323,000 to $74.2 million, representing 56.7% of net sales[153]. - Gross profit from service revenues was 90.8% for the three months, slightly down from 91.8% in the prior year, while it increased to 91.1% for the nine months compared to 90.5%[134]. Cash Flow and Investments - Cash flows from operations generated were $38.9 million for the nine months ended March 31, 2025, compared to $31.0 million in fiscal 2024[134]. - Cash and cash equivalents increased by $8,072,000 during the nine months ended March 31, 2025, totaling $89,297,000 as of that date[164]. - Net cash provided by operating activities was $38.9 million for the nine months ended March 31, 2025, attributed to net income of $31.8 million and changes in operating assets and liabilities[166]. - The net cash provided by investing activities was $15.1 million during the nine months ended March 31, 2025, primarily from the redemption of other investments[168]. - Cash used in financing activities was $45.9 million for the nine months ended March 31, 2025, mainly related to the purchase of treasury shares and payment of dividends[169]. - The Company had no outstanding debt as of March 31, 2025, with an available revolving credit line of $20,000,000[165]. Expenses - The company experienced a significant increase in research and development expenses, rising by 15.5% to $3.2 million for the three months and by 20.9% to $9.3 million for the nine months[156]. - Research and development expenses for the nine months ended March 31, 2025 increased by $1,613,000 to $9,349,000, representing 7.1% of net sales compared to 5.6% for the prior period[157]. - Selling, general and administrative (SG&A) expenses for the nine months ended March 31, 2025 increased by $4,391,000 to $30,710,000, primarily due to compensation increases and hiring additional staff[159]. Tax and Interest - The Company's effective tax rate for the nine months ended March 31, 2025 was 14.4%, up from 12.9% in the prior year, due to lower estimated R&D tax credits and higher non-deductible stock-based compensation[163]. - Interest and other income, net for the nine months ended March 31, 2025 increased by $1,121,000 to $2,927,000, driven by higher interest income on short-term investments[161]. - A 100 basis point increase in interest rates would result in a decrease in the fair value of the investment portfolio by approximately $318,000[171]. Market and Strategic Focus - The U.S. announced a new universal baseline tariff of 10% on imports, which may increase product costs and impact margins[137]. - The company is focused on innovation and adapting to industry trends through ongoing research and development activities[135].

Financial Performance - Net sales for Q3 2025 were $43.96 million, a decrease of 10.8% year-over-year[3] - Net income for Q3 2025 was $10.12 million, down 23.3% from $13.20 million in Q3 2024[3] - Diluted EPS decreased to $0.28 from $0.36 in the prior fiscal year quarter, representing a decline of 22.2%[3] - Adjusted EBITDA for the quarter was $13.16 million, a decrease of 15.5% year-over-year[3] - Operating income for the three months ended March 31, 2025, was $11,146,000, down from $14,494,000 in 2024, a decrease of approximately 23.4%[16] - Net income for the three months ended March 31, 2025, was $10,122,000, compared to $13,196,000 in 2024, representing a decline of about 23.4%[16] - Adjusted EBITDA for the nine months ended March 31, 2025, was $37,877,000, down from $43,519,000 in 2024, a decrease of approximately 13.0%[20] Revenue Breakdown - Recurring service revenue (RSR) increased by 10.6% to $21.6 million, while equipment sales decreased by 24.8% to $22.4 million[7] - RSR represented 49% of total revenue in Q3, with a prospective annual run rate of approximately $89 million based on April 2025 figures[5] - For the three months ended March 31, 2025, net sales decreased to $43,961,000 from $49,267,000 in the same period of 2024, representing a decline of approximately 10.4%[16] - Equipment revenues for the nine months ended March 31, 2025, were $66,993,000, down from $83,133,000 in 2024, a decrease of about 19.4%[17] - Service revenues increased to $63,904,000 for the nine months ended March 31, 2025, compared to $55,357,000 in 2024, reflecting an increase of approximately 15.5%[17] Profitability Metrics - Gross profit margin improved to 57.2%, compared to 53.8% in the same quarter of the previous fiscal year[3] - Gross profit for the nine months ended March 31, 2025, was $74,232,000, slightly up from $73,909,000 in 2024, indicating a growth of about 0.4%[17] Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended March 31, 2025, increased to $38,903,000 from $31,032,000 in 2024, an increase of approximately 25.5%[18] - The ending cash and cash equivalents balance as of March 31, 2025, was $73,413,000, up from $55,518,000 in 2024, reflecting an increase of about 32.2%[18] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.14 per share, an increase from the previous dividend of $0.125 per share[7] Strategic Initiatives - The company introduced a new cloud-based MVP Access platform aimed at enhancing security management capabilities[6] - The company plans to implement a price increase on all equipment products in response to tariff uncertainties[6]