Earnings Spotlight: NAPCO Security Technologies (NASDAQ:NSSC)

NAPCO Security Technologies (NASDAQ:NSSC) changed 11.66% to recent value of $16.86. The stock transacted 170276 shares during most recent day however it has an average volume of 166.78K shares. It spotted trading -51.70% off 52-week high price. On the other end, the stock has been noted 26.48% away from the low price over the last 52-weeks.

On April 7, 2020, NAPCO Security Technologies (NASDAQ:NSSC) one of the world’s leading manufacturers of high-tech electronic security devices that are fueling the Company’s fast growing recurring service revenues, as well as a leading provider of school safety solutions, reported preliminary sales results for its third fiscal quarter ended March 31, 2020.

Highlights:

  • Net sales for the quarter increased 4% to a third quarter record $26.2 million as compared to $25.1 million for the same quarter last year. Net sales for the nine months increased 7% to $78.4 million as compared to $73.3 million for the same period last year.
  • Recurring service revenue for the quarter increased 38% to $6.2 million as compared to $4.5 million for the same quarter last year. Recurring service revenue for the nine months increased 38% to $17.3 million as compared to $12.5 million for the same period last year. Recurring service revenue now has a prospective annual run rate of $25.4 million based on March 2020 recurring revenues.
  • As of March 31, 2020, the Company had approximately $10 million cash on hand and $11 million available under its revolving line of credit.

Richard Soloway, Chairman and President, commented, While we do not typically provide a business update outside of our normal quarterly cadence, we recognize these are not normal times. Given the unprecedented impact of COVID-19 on the entire world, we believe this information is warranted. As we continue to navigate this public health crisis, we have decided to provide our preliminary third quarter sales results, including recurring service revenues.

NSSC has a gross margin of 44.30% and an operating margin of 15.00% while its profit margin remained 13.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained 56.50% for this year while earning per share for the next 5-years is expected to reach at 1.50%.

The company has 18.64M of outstanding shares and 11.62M shares were floated in the market. According to the most recent quarter its current ratio was 4.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of 2.57% from the mean of 20 days, -17.43% from mean of 50 days SMA and performed -37.00% from mean of 200 days price. Company’s performance for the week was 11.14%, -8.27% for month and YTD performance remained -42.63%.

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