Napco Security Technologies Reports Financial Results for Fiscal 2025 Second Quarter

Napco Security Technologies, Inc. recently announced its financial performance for the second quarter of fiscal 2025, ended December 31, 2024. The company, a leading provider of high-tech security equipment and wireless communication devices, reported a 9.7% year-over-year decrease in net sales, which amounted to $43.0 million. Despite the decline in net sales, the company saw a 14.4% increase in recurring service revenue (RSR) to $21.2 million.

The gross profit margin for the quarter stood at 57.0%, demonstrating an improvement from the prior fiscal year quarter. The diluted earnings per share (EPS) were reported at $0.28 compared to $0.34 in the previous fiscal year quarter.

Regarding dividends, Napco Security Technologies declared a quarterly cash dividend of $0.125 per share on January 30, 2025. This amount is set to be paid on April 3, 2025, to shareholders of record as of March 12, 2025.

Richard Soloway, Chairman and CEO of Napco Security Technologies, highlighted the company’s mixed performance for the first half of fiscal 2025. The increase in RSR and gross margin was noted, although there was a reduction in equipment revenue due to various reasons, including decreased sales to distributors and timing issues related to custom locking products.

Soloway further expressed optimism in the company’s growth prospects, especially in the school safety solutions, healthcare, retail loss-prevention, and residential security sectors. He mentioned the positive reception of Prima by Napco, an All-in-One security panel, and the new cloud-based MVP Access platform introduced at the recent International Security Conference.

Looking ahead, the company aims to strengthen its financial position, drive product innovation, and enhance profitability throughout the remainder of fiscal 2025 and beyond. Napco Security Technologies plans to continue its dividend program, with the next $0.125 quarterly dividend scheduled for April 3, 2025.

For more information, an earnings conference call will be conducted at 11 a.m. ET on February 3, 2025. Interested parties can access the call through the Investor Relations section of the company’s website.

Napco Security Technologies, Inc. remains focused on delivering innovative security solutions and maintaining its position in the electronic security market. Additional details about the company and its financial results can be found on its website.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Napco Security Technologies’s 8K filing here.

About Napco Security Technologies

Napco Security Technologies, Inc develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks.