NAPCO locks in Q3

AMITYVILLE, N.Y.—Richard Soloway, CEO of NAPCO Security Technologies, attributed “recurring revenues enabled by hardware innovations” as the catalyst to a 14th consecutive record-breaking quarter for sales during the third quarter of fiscal 2024. Net sales increased 13% to$49.3 million - the highest quarterly sales in the company's history - while recurring service revenue (RSR) increased 29% to$19.5 million, representing 40% of total revenue. Locked in product development  During the Q3 earnings call, Soloway pointed out the success of NAPCO’s Alarm Lock and Marks locking hardware lines being implemented in various verticals.  “We continue to see growth in school and classroom security, healthcare and retail loss-prevention, as well as in multi-dwelling commercial and residential applications,” he stated. “Locking sales in Q3 grew approximately 16% compared to last year and approximately 10% compared to Q2 and represents 66% of hardware sales. We continue to remain focused on further penetrating each of these markets.”  On the heels of ISC West, Soloway cited NAPCO’s “successful launch of several highly distinctive products,” including its Marks USA Panic Exit Hardware line and StarLink Fire Max 2 commercial fire alarm cell communicators, as contributors to a successful show with “customer interest levels peaked” and a “record number of sales leads.”  Soloway also noted that NAPCO's Prima all-in-one system for security, fire, video and the connected home - launched late last year continues to gain traction, extending beyond the traditional dealer base. “Prima now features more emergency condition detection and all-weather cameras at a competitively priced price point enhancing both equipment capabilities and RMR potential,” he said. “Our goal is for Prima to address an important mass segment of the security market, including residential and small business systems.”  ‘Strong sales and profitability’  With yet another record-breaking quarter in the books, Soloway told investors that he is extremely optimistic about NAPCO’s growth in the final quarter of fiscal 2024 and beyond.  “In the last nine months of fiscal 2024 we have generated strong sales and profitability,” he said. “We believe we can continue this growth well into the future as we work toward our fiscal 2026 goals and beyond.”  You can find the full release of NAPCO’s Q3 fiscal 2024 results at investor.napcosecurity.com.