NAPCO Security Technologies(NSSC) Prnewswire·2025-02-18 23:07Core Viewpoint - NAPCO Security Technologies, Inc is under investigation for potential securities fraud and unlawful business practices following disappointing fiscal results and a significant drop in stock price [1][2][3]. Financial Performance - For the fiscal 2025 second quarter, NAPCO reported a decrease in net sales and diluted earnings per share compared to the same period in the previous year [2]. - The decline in equipment revenue was attributed to lagging sales in intrusion and access alarm products and door locking devices [2]. Distributor Issues - NAPCO faced specific challenges with two major distributors: one reduced purchases to cut inventory levels, while the other underwent a management restructuring that delayed transaction approvals [2]. Stock Market Reaction - Following the announcement of the fiscal results, NAPCO's stock price fell by 26.93 per share on February 3, 2025 [3].