Napco Security Technologies Reports Record Sales in Fiscal 2024

By Bobby Samwell • Monday, August 26 15:16 • Permanent Link

Napco Security Technologies, Inc. has reported record-breaking financial results for fiscal 2024. The company's net sales for the quarter increased by 13% to $50.3 million, marking the highest quarterly sales in its history. This growth trend also extended to the full fiscal year, with net sales increasing by 11% to a record $188.8 million. Recurring service revenue ("RSR") saw a notable increase, with a 27% jump to $20.3 million for the quarter and a 26% rise to $75.7 million for the year. Gross margin for RSR also increased to 90.4% for the quarter and 90.5% for the year.

Net income for the quarter increased by 28% to a record $13.5 million, while the net income for the year surged by 84% to $49.8 million. Earnings per share (diluted) for the quarter and the year also saw significant increases of 28% and 84%, respectively. Adjusted EBITDA for the quarter increased by 18% to $15.4 million, contributing to a 72% increase for the year, reaching a record $58.9 million.

The company's financial health is further demonstrated by its balance sheet, with cash and cash equivalents, other investments, and marketable securities increasing by 46% to $97.7 million. Additionally, cash provided by operating activities for the year ended June 30, 2024, amounted to $45.4 million, an 84% increase over the previous period.

Napco Security Technologies also declared a quarterly dividend of $0.125 per share, representing a 25% sequential increase, reflecting the strong financial performance.

Furthermore, the company's operating income for the quarter increased by 18% to $14.0 million, while for the year, it soared by 77% to $53.8 million. Despite the increase in research and development costs and selling, general, and administrative expenses, Napco Security Technologies maintained a strong financial position and achieved impressive growth in various financial metrics.

The company's chairman and CEO, Richard Soloway, expressed satisfaction with the record-breaking year and emphasized the company's focus on product innovation, technical superiority, and continued financial strength for fiscal 2025 and beyond.

As a result of these announcements, the company's shares have moved -15.1% on the market, and are now trading at a price of $47.1. For more information, read the company's full 8-K submission here.

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