NAPCO Security Technologies has reported fiscal fourth-quarter earnings of $3.4 million. The company said it had profit of 18 cents per share.
The security products and software company posted revenue of $24.1 million in the period. For the year, the company reported profit of $5.8 million, or 31 cents per share. Revenue was reported as $82.5 million.
During an earnings conference call, NAPCO Chairman, President and CEO Richard Soloway said the company achieved record results in the fourth quarter and for the year despite being up against difficult comparisons with a strong performance last year.
“The fourth quarter was our fifth in a row to have record quarterly revenue performance and produced the highest quarterly net income in our history. Recurring revenue grew 63 percent last year and while still a relatively small piece of our overall revenue as it grows it will provide greater margin contribution as well as greater consistency and predictability in our financial results,” said Soloway.
Soloway said growth in the Internet of Things (IoT) along with improving school security and safety are key market drivers that continue to impact the company’s results favorably.
“Alarms, locking and access control are one of the first and fastest growing sets of devices and systems to benefit from and connect to the Internet. As a result, there are opportunities for NAPCO to take market share while upgrading installed base of existing technologies as well as benefits from accelerating end market growth as customers realize the benefits of connecting these devices and systems to the internet,” Soloway continued.
To take advantage of this paradigm shift, he said NAPCO strategies are “focused on introducing new and innovative products and services that are compelling to the end user customer as well as products and services that help our dealers grow and succeed.”
NAPCO shares have climbed 19 percent since the beginning of the year. The stock has increased 19 percent in the last 12 months.