Napco Security Technologies Inc. reported a 92 percent jump in net income Monday as its monthly subscription revenue grew.
The Amityville maker of electronic security and "connected home" devices for homes, businesses and schools had net income of $1.83 million for the quarter ended March 31, up from $952,000 a year earlier.
Net sales grew annually by 7 percent, to $22.2 million, and recurring service revenue increased 49 percent compared with the same period last year, the company reported Monday.
Earnings per diluted share were 10 cents, up from 5 cents a year earlier.
The company’s stock rose 8.3 percent Monday to close at $11.80. A year ago it traded at $10.
Napco chairman and president Richard Soloway said in a statement Monday that the company’s focus on increasing subscription revenue “is working well.”
Napco’s StarLink intrusion and firm alarm systems and wireless communicators, he said, “continue to be strong product offerings. Given the millions of intrusion and fire alarm panels across the country, which currently communicate alarms via hard-wired landlines, facing obsolescence and needing a wireless upgrade to continue to operate, we should see considerable future growth in this product area.”
Napco bought back 122,795 shares of its common stock during the quarter, at a weighted average purchase price of $9.29 per share, under a repurchase program announced in 2014.