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Mar 31, 2023
Napco Q3 2023 Earnings Report
NAPCO reported record Q3 sales and net income, driven by growth in both equipment and recurring service revenues.
Key Takeaways
NAPCO Security Technologies reported a strong third quarter for fiscal year 2023, marked by record sales and profitability. Net sales increased by 21% to $43.5 million, with recurring service revenues up by 26% to $15.1 million. The company's net income reached a record $10.8 million, and adjusted EBITDA also hit a quarterly record of $12.7 million. The company initiated a quarterly dividend program.
Net sales increased by 21% to a record $43.5 million compared to the same period last year.
Recurring service revenue increased by 26% to $15.1 million, with a gross margin of 90%.
Net income reached a record $10.8 million, a 231% increase compared to the previous year.
Adjusted EBITDA was a record $12.7 million, a 123% increase year-over-year.
Napco
Napco
Forward Guidance
NAPCO anticipates strong demand to continue through the balance of fiscal 2023 and into their next fiscal year, focusing on seamless security solutions, recurring service revenue growth, and penetrating the school security market.
Positive Outlook
- Strong sales of product lines including Starlink radios, Alarm Lock and Marks locking products, and Continental access control systems.
- Focus on providing seamless security solutions to customers.
- Continued growth in recurring service revenue.
- Introduction of new products like Air Access to generate new recurring service revenue.
- Commitment to generating strong revenue growth and increased profitability to deliver significant value to shareholders.
Challenges Ahead
- The press release contains forward-looking statements that are subject to various risks and uncertainties.
- Actual results could differ materially from those anticipated due to factors such as the impact of the COVID-19 pandemic and supply chain challenges.
- Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.
- The company cannot guarantee future results, level of activity, performance, or achievements.
- Investors are cautioned not to place undue reliance on these forward-looking statements.