The hot streak continues for Napco Security Technologies, which rode an 80 percent leap in net income to set a new first-quarter revenue record.
Reporting Monday on the first three months of its 2017 fiscal year, the Amityville-based provider of high-tech security solutions noted $20.2 million in earnings, marking an 11 percent increase over revenues reported for 1Q FY2016 and setting a new first-quarter high-water mark. The impressive haul also marked the sixth straight quarter of record-breaking revenues.
Other gains in the slam-bang quarter ended Sept. 30 include that net income increase – rising from $315,000 in 1Q FY2016 to $568,000 – and a modest year-over-year rise in diluted earnings per share, up a penny to 3 cents.
While happily attributing the bright financials to existing products and services – including a 65 percent increase in recurring revenues generated by commercial fire and intrusion alarm subscribers – Napco Security Technologies Chairman and President Richard Soloway said company principals were “particularly pleased to see that our investment in the engineering and marketing of fertile new product opportunities is driving our double-digit top-line growth.”
Those promising products include a new Internet of Things-enabled communicator, StarLink Connect, which Napco Security Technologies plans to unveil at this month’s International Security Conference & Exhibition East trade show at New York City’s Jacob K. Javits Convention Center.
StarLink Connect is designed as an upgrade to “tens of millions of currently installed security systems,” Soloway noted, giving them state-of-the-art IoT connectivity including remote control of alarms, lighting, thermostats, surveillance cameras and electronic door locks through smart devices.
“This will supply both our company and dealers with incremental, subscriber-based, [recurring] income streams,” he said, noting deeper reaches into IoT connectivity and related services generates substantial Recurring Monthly Revenues “in addition to the initial hardware sale.”
“Our product development and marketing investment, enabling us to enter growing and lucrative markets, will continue to fuel our future growth,” Soloway added. “Targeting categories such as alarm communications … grows the company’s profitability.”