Loading...
•
Jun 30, 2021
Napco Q4 2021 Earnings Report
NAPCO delivered record results, with a significant increase in sales and net income, driven by strong recurring service revenues.
Key Takeaways
NAPCO Security Technologies reported record fourth-quarter results, with a 54% increase in net sales to $35.4 million and net income of $5.0 million, compared to a net loss of $1.9 million in the same period last year. Recurring service revenue grew by 43% to $9.5 million, with a gross margin of 87%. The company's strong performance was attributed to its commercial intrusion and fire alarm business, which was not significantly affected by COVID-19.
Net sales for the quarter increased 54% to a record $35.4 million.
Recurring service revenue for the quarter increased 43% to $9.5 million with a gross margin of 87%.
Net income for the quarter was a record $5.0 million, compared to a net loss of $1.9 million for the same period last year.
Earnings per share (diluted) for the quarter was $0.27 as compared to a loss per share of $0.10 for the same period a year ago.
Forward Guidance
NAPCO anticipates continued growth and profitability expansion in fiscal year 2022, driven by its focus on expanding recurring revenue product offerings and managing logistical challenges.
Positive Outlook
- Record-setting revenue and profitability in Q4 and fiscal 2021.
- Continued strong recurring revenue margins.
- Expansion of recurring revenue product offerings into all product lines.
- Focus on generating strong revenue growth.
- Focus on increased profitability.
Challenges Ahead
- Challenging global logistics and supply chain environments.
- Postponements of planned security upgrades due to the COVID-19 pandemic.
- Shift in product mix with lower hardware margins.
- Lower overhead absorption rate resulting from the reduction of inventories.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...