Napco Security Technologies (Nasdaq: NSSC) on Tuesday reported net sales for the third quarter increased 13% to $25.1 million, compared to $22.2 million for the same quarter the prior year. Net sales for the nine months ended March 31 increased 14% to $73.3 million versus $64.5 million for the same period last year.
Napco posted quarterly earnings of 17 cents per share, beating the Zacks Consensus Estimate of 11 cents per share. This compares to earnings of 10 cents per share a year ago. The figures are adjusted for non-recurring items.
The company reported recurring service revenue in the quarter increased 44% to $4.5 million, compared to $3.2 million for the same period last year.
For the nine months, recurring service revenue increased 46% to $12.5 million from $8.6 million last year.
Napco Net Income Up 71%
Net income for the quarter increased 71% to $3.1 million from $1.8 million a year ago. Net income for the nine months increased 90% to $7.5 million from $4 million a year ago.
During an earnings call Tuesday, Napco President and CEO Richard Soloway said the third quarter marked record revenue and strong profitability performance for the company, with 19 consecutive quarters of year-over-year record sales.
The increase in sales for the three and the nine months ended March 31 were attributed primarily related to increased sales of the alarm communications services, intrusion and access products, and door-locking products.
“Our recurring revenues continue to grow at a rapid rate. The annual run rate is now $18.9 million as of March 2019. Our strategy of targeting professional installations and mostly commercial end market is driving the continuous growth,” he said.
In afternoon trading on Wednesday the company’s stock had increased nearly 3% to $28.85. Napco shares have risen 59% since the beginning of the year. The stock has more than doubled in the last 12 months, according to Zacks.
This article originally appeared on our sister publication Security Sales & Integration's website.