Napco posts highest 1Q income in 5 years
Napco Security Technologies Inc. of Amityville swung from a loss to a profit in its fiscal first quarter as sales rose for its alarm and access-control products.
Revenue in the three months ended Sept. 30 rose 13 percent from the year-earlier period to $17.2 million -- Napco's highest first-quarter total in five years, the company said.
Net income increased to $123,000, or a penny a share, the highest first-quarter income in five years, compared to a loss in the year-earlier quarter of $434,000, or two cents a share. The increase came despite a reduction in tax benefits.
The company cited higher product sales and a 200 basis point increase in gross margin, to 29.2 percent from 27.2 percent.
Shares of Napco rose 23 cents, or 4 percent, to $6.05 at the close of trading Monday. The company has a stock market value of about $117 million.
Chairman and president Richard Soloway said, "Our efforts to develop, introduce and promote product lines which deliver recurring monthly revenue to the company are paying off."
In the first quarter the company introduced an enhanced package of security and access-control and educational measures for the operators of schools and other public buildings, called Project LocDown.