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Dec 31, 2023
Napco Q2 2024 Earnings Report
NAPCO reported record revenues, net income, and adjusted EBITDA for Q2 of fiscal year 2024.
Key Takeaways
NAPCO Security Technologies reported a strong second quarter in fiscal 2024, marked by record revenues, net income, and adjusted EBITDA. Net sales increased by 12% to $47.5 million, driven by a 25% increase in recurring service revenues and growth in equipment revenues. Net income soared by 221% to $12.6 million, and adjusted EBITDA increased by 191% to $15.1 million.
Net sales increased by 12% to $47.5 million, the highest quarterly sales in the Company’s history.
Recurring service revenue increased by 25% to $18.5 million with a gross margin of 90%.
Net income increased by 221% to $12.6 million.
Adjusted EBITDA increased by 191% to $15.1 million.
Napco
Napco
Forward Guidance
NAPCO is focused on product innovation, technical superiority, and strong profitability, with a commitment to continued financial strength and the ongoing dividend program.
Positive Outlook
- Improved gross margin for hardware sales is expected to increase further as the fiscal year progresses.
- Strong net income and Adjusted EBITDA* margins indicate the financial strength of our business.
- The company is set to pay another dividend of $0.10 per share on March 22, 2024.
- Company is focused on product innovation.
- Company is focused on technical superiority.
Challenges Ahead
- There is more work to be done in the second half of fiscal 2024.
- Radio sales were still 13% below the radio sales for Q2 last year.
- We are encouraged with the improved gross margin for hardware sales of 29%, we believe this could improve further as the fiscal year progresses.
- The Company undertakes no duty to update such information, except as required under applicable law
- Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements