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Napco Security reports 44% jump in net income

Napco Security Technologies Inc.'s headquarters in Amityville on

Napco Security Technologies Inc.'s headquarters in Amityville on Sept. 6 2016. Credit: Steve Pfost

Napco Security Technologies Inc.’s net income jumped 44 percent in the most recent quarter as its recurring revenue for alarm systems increased.

The Amityville company, which makes electronic security, fire alarm and “connected home” devices for homes, businesses and schools, reported net income of $1.2 million for the quarter ending Dec. 31.

Its net sales were $21.1 million for the quarter, up 1.9 percent from a year earlier, Napco reported. Recurring revenue, which is part of net sales, grew 52 percent.

Napco chairman and president Richard Soloway said in a statement that the company had “impressive sales growth” in its subscription-based StarLink intrusion and fire alarm systems. The services give property owners an app to control their security systems, lights and other devices.

The company hopes to get a boost from a proposed federal infrastructure spending plan, especially if the measure includes funding for school security systems, Soloway said on a conference call with analysts. Napco sells wireless security systems for K-12 schools, colleges and universities, as well as office buildings and malls. The University of California, Berkeley, uses its fire alarm system, Soloway said.

The company “is in a strong position to continue its growth in sales and profits going forward,” he said on the call.

Napco’s management repurchased 22,600 shares of its common stock in the most recent quarter, at a weighted average purchase price of $8.53 per share. Senior management now owns 38 percent of the company’s equity, Soloway said.

Earnings per diluted share were 7 cents, up from 5 cents a year earlier.

Napco’s stock rose 2.1 percent to close at $9.80 Monday. In the past 12 months, the shares’ value has risen by about 6 percent.

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