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Napco Security Technologies’ profit jumps on recurring revenue

Napco Security Technologies says it will issue its

Napco Security Technologies says it will issue its quarterly report on Thursday. Sept. 6, 2016. Credit: Steve Pfost

Napco Security Technologies Inc.’s net income jumped by nearly 57 percent in the most recent quarter as its recurring revenue increased, the company said Monday in a preliminary, unaudited statement.

The company said it will issue its quarterly report on Thursday.

The Amityville maker of electronic security, fire alarm and “connected home” devices for homes, businesses and schools said its net income was $890,000 for the quarter that ended Sept. 30.

Its net sales for the quarter were $21.2 million, 5 percent higher than a year earlier and a record for the company, Napco said. Recurring revenue, which is part of net sales, increased by 56 percent.

Napco offers a subscription-based service, StarLink Connect, that lets homeowners use an app to control their security systems, lights and other devices.

In a statement, Napco chairman and president Richard Soloway said, “The investments we have made in sales, marketing and engineering continue to provide a solid foundation for steady, consistent growth in sales and profitability and bode well for a strong future” for the company.

In an emailed response to a question, Soloway wrote, “As our volume rises, our profits rise quite dramatically due to factory efficiencies of better amortization of costs.”

Earnings per diluted share were 5 cents, up from 3 cents a year earlier.

Napco’s stock dropped 5 cents to close at $9.85 on Monday. In the past 12 months, the shares are up almost 40 percent.

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