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NAPCO Security Technologies(NSSC) - 2025 Q2 - Quarterly Results
NSSCNAPCO Security Technologies(NSSC)2025-02-03 20:27

Financial Performance - Net sales for Q2 Fiscal 2025 were 42.9million,adecreaseof9.742.9 million, a decrease of 9.7% year-over-year from 47.5 million[3] - Net income decreased to 10.5million,down17.010.5 million, down 17.0% from 12.6 million in the prior year[3] - Diluted EPS was 0.28,comparedto0.28, compared to 0.34 in the same quarter last year, reflecting a decline of 17.6%[6] - Adjusted EBITDA for Q2 was 12.2million,adecreaseof19.312.2 million, a decrease of 19.3% from 15.1 million in the prior year[3] - Operating income for the three months ended December 31, 2024, was 11,171,adeclineof19.011,171, a decline of 19.0% from 13,805 in the same period of 2023[15] - Net income for the six months ended December 31, 2024, was 21,652,down6.221,652, down 6.2% from 23,088 in 2023[16] - Adjusted EBITDA for the three months ended December 31, 2024, was 12,178,adecreaseof19.112,178, a decrease of 19.1% from 15,098 in the same period of 2023[19] - Basic income per share for the three months ended December 31, 2024, was 0.29,downfrom0.29, down from 0.34 in the prior year[15] Revenue Breakdown - Recurring service revenue (RSR) increased by 14.4% to 21.2million,representing4921.2 million, representing 49% of total revenue in Q2[5] - Equipment revenues decreased to 21,725, down 25.1% from 29,007intheprioryear,whileservicerevenuesincreasedto29,007 in the prior year, while service revenues increased to 21,208, up 14.4% from 18,540[15]ProfitabilityMetrics−Grossprofitmarginimprovedto57.018,540[15] Profitability Metrics - Gross profit margin improved to 57.0%, up from 52.6% in the same quarter last year[6] - Gross profit for the six months ended December 31, 2024, was 49,105, an increase of 3.5% from 47,425in2023[16]CashFlowandLiquidity−Cashflowsfromoperatingactivitiesincreasedby36.547,425 in 2023[16] Cash Flow and Liquidity - Cash flows from operating activities increased by 36.5% to 25.5 million compared to 18.7millionintheprioryear[3]−CashprovidedbyoperatingactivitiesforthesixmonthsendedDecember31,2024,was18.7 million in the prior year[3] - Cash provided by operating activities for the six months ended December 31, 2024, was 25,524, an increase of 36.5% compared to 18,693in2023[17]−Thecompanyreportedanendingcashandcashequivalentsbalanceof18,693 in 2023[17] - The company reported an ending cash and cash equivalents balance of 86,019 for the six months ended December 31, 2024, compared to 47,311in2023[17]DividendsandShareholderReturns−Thecompanydeclaredaquarterlydividendof47,311 in 2023[17] Dividends and Shareholder Returns - The company declared a quarterly dividend of 0.125 per share, payable on April 3, 2025[6] Product Development and Market Position - The Prima by NAPCO, an all-in-one security panel, is gaining traction in the market[7] - The new cloud-based MVP Access platform was introduced, aimed at generating monthly recurring revenue for the locking industry[8] Research and Development - Research and development expenses increased to 3,107forthethreemonthsendedDecember31,2024,up22.23,107 for the three months ended December 31, 2024, up 22.2% from 2,542 in 2023[15]