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Mar 31, 2022
Napco Q3 2022 Earnings Report
NAPCO reported a 27% increase in sales to a record of $35.9 million, with recurring service revenues increasing 35% to $12.0 million.
Key Takeaways
NAPCO Security Technologies, Inc. announced strong revenue growth for the third quarter of fiscal 2022, with sales reaching a record $35.9 million, a 27% increase compared to the same period last year. Recurring service revenue also saw a significant increase of 35%, reaching $12.0 million. However, net income decreased by 34% due to increased costs from supply chain disruptions.
Net sales increased by 27% to a record $35.9 million.
Recurring service revenue increased by 35% to $12.0 million.
Net income decreased by 34% to $2.9 million due to supply chain disruptions.
Cash, cash equivalents, and marketable securities increased by 18% to $47.4 million.
Napco
Napco
Forward Guidance
NAPCO is confident in its ability to navigate the difficult economic environment and continue to deliver strong growth in both equipment and recurring revenue. The demand for products and services continues to be very strong.
Positive Outlook
- School security jobs are returning.
- Recurring service revenue remains strong.
- Management has experience dealing with supply chain shortages.
- Providing seamless security solutions for customers.
- Growing recurring revenue with existing and new products.
Challenges Ahead
- Ability to fully meet the strong demand for products continues to be constrained by the ongoing supply chain challenges.
- Electronic component shortages and logistics delays.
- Constraints have slowed the pace of revenue realization.
- Historically high backlog levels which may continue throughout calendar 2022, particularly for electronic products.
- Volatility associated with shortages of electronic components, increased shipping costs and raw material price inflation.