Napco Security Technologies, Inc. (Nasdaq: NSSC) kept its focus on two key areas to boost its revenue and grow its recurring monthly revenue (RMR) for the first three months of the year. Napco, makers of intrusion security, Internet of Things (IoT) smart home, video and fire systems, as well as access control and door locking products, grew revenues in its fiscal Q3 by $1 million, reporting net sales of $20.8 million, as compared to $19.8 million for the same quarter last year.
Meanwhile, its RMR for the third quarter increased 68 percent compared to the same quarter a year ago and grew 14 percent from the previous three months. Gross margin for the quarter increased to 32 percent as compared to 30.8 percent for the same quarter last year. The company has $2.4 million in cash reserves.
Dick Soloway, chairman and president of the Amityville, N.Y.-based company, commensd, “Our investments in our future continue to position Napco solidly, for optimal sales growth.”
In a call to investors, he particularly stressed the focus on RMR and the school safety market. Napco’s new StarLink Connect Series of Universal Alarm Communicators with Connected Home Services recently won the Security Sales & Integration MVP Award for Best Home Control and collected hardware from the Security Industry Association’s New Product Showcase awards.
SEE RELATED: IP/Cellular Communicators Dominate at ISC West
Soloway called StarLink “one of the largest product introductions in our company's history,” noting the product extends Napco’s presence in the RMR-oriented alarm/event communication and remote connected home services category.”
School Safety Focus
On the school safety front, Soloway highlighted the companys UniVerse POE single-door control from its Continental Access Control Division, which is built on the new CA4K Access Control Software Platform.
The product delivers “a labor-saving, economical solution for the education or healthcare vertical markets,” says Soloway. The cloud-based Access Control as a Service (ACaaS) software saves end users “considerable investment in infrastructure and IT expenditures” and subsequently delivers RMR to Napco and its integrators.
He concludes, “Recurring revenue continues to grow at a very strong rate for us driven by alarm communications and the Internet of Things. School security continues to receive a significant amount of attention and we expect new spending related to making improvements for school safety to continue at a strong rate. To take advantage of these paradigm shifts, our strategy is focused on introducing new innovative products and services that are compelling to the end user as well as products and services to help our dealers grow and succeed. Our staff of 40 plus R&D engineers is working diligently to get new products developed as quickly as they can.”