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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.
Napco
Napco
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.