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Jun 30, 2020
Napco Q4 2020 Earnings Report
NAPCO's Q4 results reflected the challenging business environment resulting from the COVID-19 pandemic and the strength of its business model, with strong recurring service revenues and increased gross margins.
Key Takeaways
NAPCO Security Technologies reported a decrease in net sales for the quarter due to the impact of the COVID-19 pandemic on equipment sales, but recurring service revenues remained strong with a 35% growth. The company is focused on driving recurring revenue growth, investing in new technologies, and managing costs.
Recurring service revenues grew by 35% year-over-year.
Gross margins for recurring service revenues increased to 83%.
Equipment sales were impacted by COVID-19 related restrictions.
The company is focused on expanding recurring revenues and managing costs.
Forward Guidance
NAPCO expects to introduce Air Access®, a new cellular access control (cloud- hosted) product line, in the upcoming fiscal year, which is designed to generate recurring monthly revenue for locking dealers and for the Company from its locking and access control divisions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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