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NAPCO Security Tech (NASDAQ: NSSC) reported Q4 EPS of $0.20, $0.01 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $27.3 million versus the consensus estimate of $27.15 million.
- Net sales for the quarter increased 6% to a record $27.3 million as compared to $25.7 million for the same quarter last year. Net sales for the fiscal year were a record $91.7 million, a 5% increase, as compared to $87.4 million for FY2017.
- Recurring service revenue for the quarter increased 49% to $3.4 million as compared to $2.3 million for the same quarter last year and for the fiscal year increased 51% to $12 million from $7.9 million last year. Recurring service revenue now has a prospective annual run rate of $14.2 million based on June 2018 and $14.7 million based on July 2018.
- Net income for the quarter increased 15% to a fourth quarter record of $3.7 million from $3.2 million a year ago. Net income for the fiscal year increased 37% to a record $7.6 million from $5.6 million a year ago.
- Earnings per share (diluted) for the quarter was $0.20, as compared to $0.17 for the same period a year ago. Earnings per share (diluted) for the fiscal year was $0.41, as compared to $0.30 for the same period a year ago.
- Adjusted EBITDA* for the quarter increased 23% to $4.7 million from $3.8 million a year ago. Adjusted EBITDA* for the fiscal 2018 increased 27% to $10.0 million from $7.9 million in fiscal 2017.
- As of June 30, 2018 the Company has paid off its bank debt in full.
Richard Soloway, Chairman and President, commented, “We were pleased to see our Company reaching record milestones in both sales and profits, for Q4 and fiscal 2018. This performance is a confirmation that our investments in new product development, as well as entering new market segments which provide strong avenues for sales and recurring revenue growth, have positioned NAPCO well for the future. Importantly, fiscal 2018 also saw us keep our R&D and marketing expenditures constant, an objective of ours at the beginning of the year, which resulted in delivering a record $7.6 million in net income.
This past year saw our Company continue to play a leadership role in raising the level of school safety and security preparedness, at K-12 schools, universities and colleges across the U.S. Demand has increased substantially for our integrated line of education-focused security solutions, including our advanced wireless locking and access control solutions, marketed by our Alarm Lock, Marks and Continental Access Control Divisions and also our high-technology alarm and communication systems, from our NAPCO Division. Utilizing NAPCO’s proprietary School Access-control Vulnerability Index (“SAVI”) audit system, our Company trains dealers, integrators and school personnel on how to quantitatively measure a school’s security level. The index highlights deficiencies in the school’s preparedness level and creates an action plan so that security dealers and end-user school officials can address the situation.”
For earnings history and earnings-related data on NAPCO Security Tech (NSSC) click here.