Headquartered in Amityville, NY Fiscal year ends June NASDAQ: NSSC napcosecurity.com
NAPCO Security Technologies designs and manufactures electronic security equipment and provides wireless communication services for intrusion and fire alarm systems. It also offers school safety solutions.
The business has two revenue streams:
- Equipment sales, including intrusion and fire alarm panels, access control and locking products. These are sold largely through distributors.
- Recurring service revenue, generated from cellular and wireless alarm communication services. This stream has gross margins above 90% and now accounts for more than half of total revenue.
The company operates through four divisions: NAPCO and three wholly owned subsidiaries, Alarm Lock, Continental Instruments and Marks USA. Its products are installed by tens of thousands of security professionals in commercial, industrial, institutional, residential and government applications.
NAPCO carries no debt and pays a quarterly cash dividend. Updated
A six-quarter streak of earnings beats ended as two locking distributors cut purchases, pushing equipment revenue down 7.3% and leaving both EPS and revenue missing expectations. Recurring service revenue still hit a record, and that line decides how long this setback lasts.
1,301 companies report next week, and Monday alone front-loads the read on consumer, travel and chips before the open: Estée Lauder, Marriott, Fox, Check Point and Tower Semiconductor. With misses getting punished harder than usual this season, positioning ahead of Monday morning matters.
Has Napco Security Technologies CEO Richard Soloway been increasing or decreasing his share count over the past year? Does he know something we don’t?
NAPCO Security Technologies designs and manufactures electronic security equipment and provides wireless communication services for intrusion and fire alarm systems. It also offers school safety solutions.
The Wall Street consensus 12-month price target for NSSC is $44.33.
