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Sep 30, 2022
Napco Q1 2023 Earnings Report
NAPCO's first quarter of fiscal year 2023 resulted in record sales and increased recurring service revenues.
Key Takeaways
NAPCO Security Technologies reported a 27% increase in net sales to a record $39.5 million for the first quarter of fiscal 2023. Recurring service revenues increased by 35% to $13.8 million, with gross margins of 88%. Net income was $6.4 million, and Adjusted EBITDA was $8.3 million.
Net sales increased by 27% to a Q1 record of $39.5 million.
Recurring service revenue increased by 35% to $13.8 million with gross margins of 88%.
Net income was $6.4 million, compared to $7.8 million for the same period last year.
Adjusted EBITDA increased by 77% to $8.3 million.
Napco
Napco
Forward Guidance
NAPCO is confident in its ability to navigate the challenging operating environment and deliver strong growth in both equipment and recurring revenue by leveraging its experienced management team and focusing on seamless security solutions.
Positive Outlook
- Demand for products and services remains strong.
- Management team has experience in dealing with supply chain shortages.
- Focus on providing seamless security solutions.
- Growth in recurring revenue is expected to continue.
- New products like Air Access are expected to generate new recurring revenue.
Challenges Ahead
- Challenging operating environment.
- Ongoing logistical challenges within supply chains.
- Uncertain economic environment.
- Volatility associated with current global supply chain constraints.
- Significant inventory increase due to purchasing difficult to get electronic components.