What You Must Know About stock? Napco Security Technologies Inc (NASDAQ: NSSC)
On Wednesday, Napco Security Technologies Inc (NASDAQ: NSSC) remained among the day losers and traded with change of -0.42% on volume of 124496 shares in the last session as compared to average volume of 83440 shares. During last trade its minimum price was $23.23 and it gained highest price of $24.29. NSSC has total market […]
On Wednesday, Napco Security Technologies Inc (NASDAQ: NSSC) remained among the day losers and traded with change of -0.42% on volume of 124496 shares in the last session as compared to average volume of 83440 shares. During last trade its minimum price was $23.23 and it gained highest price of $24.29. NSSC has total market capitalization of $428.41M. Its closing value stands at $23.5. NAPCO Security Technologies, Inc. (NSSC) recently reported financial results for its fourth quarter and fiscal year ended June 30, 2020. Financial Highlights: The COVID-19 pandemic has caused difficulties for security equipment professionals getting access to both commercial and residential installation sites. The Company believes this access issue is an industry-wide issue related to COVID-19 and not reflective of the loss of any market share exclusive to the Company or any long-term negative reflection of the post-pandemic vibrancy of the security industry as a whole. Net sales for the quarter reduced 22% to $23.0M as contrast to $29.6M for the same period last year. Net sales for the fiscal year reduced 2% to $101.4M as contrast to $102.9M for the same period last year. Recurring service revenue for the quarter increased 35% to $6.7M as contrast to $5.0M for the same period last year. Recurring service revenue for the fiscal year increased 38% to $24.0M as contrast to $17.4M for the same period last year. Recurring service revenue now has a prospective yearly run rate of $27.5M based on June 2020 recurring revenues. Gross Margin for recurring service revenue for the quarter was 83% as contrast to 78% for the same period last year. Gross Margin for recurring service revenue for the fiscal year was 82% as contrast to 78% a year ago. Adjusted EBITDA* for the quarter was $1.5M as contrast to $5.2M a year ago. Adjusted EBITDA earnings per share for the quarter was $0.08 as contrast to $0.28 for the same period a year ago. Adjusted EBITDA* for the fiscal year was $14.7M as contrast to $15.0M a year ago. Adjusted EBITDA earnings per share for the fiscal year was $0.80, as contrast to $0.81 for the same period a year ago. Non-recurring expenses relating to one-time charges to income taxes and intangible impairment totaled $3.4M. Net income for the quarter reduced to $(1.9)M from $4.7M a year ago. Earnings per share (diluted) for the quarter was $(0.10) as contrast to $0.26 for the same period a year ago. Net income for the fiscal year was $8.5M as contrast to $12.2M a year ago. Earnings per share (diluted) for the fiscal year was $0.46, as contrast to $0.66 for the same period a year ago. Cash and cash equivalents were $18.2M at June 30, 2020 as contrast to $8.0M at June 30, 2019. We were very happy with the recurring revenue growth, especially from fire radios, which helped fuel the increase in recurring gross margins this past quarter.  We continue to see the retirement of POTS or copper telephone land lines which presents an prospects for installers to upgrade older fire systems, and for new projects to include cellular or other system technologies. The government no longer requires that POTS lines be maintained and we are seeing a shift of theMs of fire alarms in the market transitioning to cellular communications.  Another prospects for the Company is the upgrade and replacement of current cellular alarm reporting systems to meet the deadline for 3G and CDMA cellular sunset cutoffs over the next 18 months. Financial Results Net sales for the three months ended June 30, 2020 reduced 22% to $23.0M, as contrast to $29.6M for the same period one year ago. Net sales for the fiscal year ended June 30, 2020 reduced 2% to $101.4M, as contrast to $102.9M for the same period one year ago. Research and development costs for the quarter were $1.9M for each of the quarters ended June 30, 2020 and 2019 and were 8% of sales and 6% of sales for the quarters ended June 30, 2020 and 2019, respectively. Research and development costs for fiscal year 2020 remained relatively constant at $7.3M or 7% of sales as contrast to $7.2M or 7% of sales last year. Selling, general and administrative expenses for the quarter reduced 19% to $5.1M, or 22% of sales, as contrast to $6.3M, or 21% of sales for the same period last year. Selling, general and administrative expenses for the fiscal year ended June 30, 2020 increased 2% to $23.7M, or 23% of sales, as contrast to $23.2M, or 23% of sales for the same period last year. Operating income before impairment for the three months ended June 30, 2020 was $1.0M as contrast to $4.8M for the same period a year ago, Operating income before impairment for the fiscal year ended June 30, 2020 was $12.7M, as contrast to $13.5M for the same period a year ago. Net income for the three months ended June 30, 2020 reduced to $(1.9)M, or $(0.10) per diluted share, as contrast to $4.7M, or $0.26 per share, for the same quarter last year. Net income for the fiscal year ended June 30, 2020 was $8.5M, or $0.46 per diluted share, as contrast to $12.2M, or $0.66 per share, for the same period last year. During the quarter, the Company recorded non-recurring expenses relating to one-time charges to income taxes and intangible impairment, totaling $3.4M. Adjusted EBITDA* for the three months ended June 30, 2020 was $1.5M, or $0.08 per diluted share, as contrast to $5.2M, or $0.28 per diluted share for the same period last year. Adjusted EBITDA* for the fiscal year ended June 30, 2020 was $14.7M, or $0.80 per diluted share, as contrast to $15.0M, or $0.81 per diluted share for the same period last year. Balance Sheet Summary At June 30, 2020, the Company had $18.2M in cash and cash equivalents as contrast to $8.0M as of June 30, 2019. Working capital (defined as current assets less current liabilities) was $62.8M at June 30, 2020 as contrast with working capital of $51.1M at June 30, 2019. Current ratio (defined as current assets divided by current liabilities) was 5.0:1 at June 30, 2020 and 4.6:1 at June 30, 2019. Company’s performance for the week was 3.48%, -5.66% for month and YTD performance remained -20.04%. The price moved ahead of 2.25% from the mean of 20 days, -3.54% from mean of 50 days SMA and performed 0.96% from mean of 200 days price.

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