NASDAQ$NSSC

Napco Security Technologies Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

NAPCO reported first quarter fiscal 2022 results with record sales and net income.

NAPCO Security Technologies reported a strong first quarter in fiscal year 2022, marked by a 34% increase in sales to a record $31.1 million and a 234% increase in net income to $7.8 million. Recurring service revenues grew by 41% to $10.2 million, with a gross margin of 86%. The company's cash and cash equivalents and marketable securities increased to $43.2 million.

  • Net sales increased by 34% to a record $31.1 million.
  • Recurring service revenue increased by 41% to $10.2 million with an 86% gross margin.
  • Net income increased by 234% to a record $7.8 million.
  • Earnings per share increased by 223% to $0.42.

Headline financials

Total Revenue

$31.1M

Previous: $23.2M+34.0%
EPS (adj)

$0.11

Previous: $0.07+57.1%
Adjusted EBITDA

$8.61M

No prior period
Capital Expenditures

-$522K

Previous: -$143K-265.0%
Free Cash Flow

$7.23M

Previous: $2.18M+232.3%
Net Income

$7.75M

Previous: $2.32M+234.3%
Operating Income

$4.18M

Previous: $2.65M+57.5%
Gross Profit

$13.5M

Previous: $10.7M+25.9%
Cash & Equivalents

$37.7M

Previous: $21.9M+72.6%
Total Assets

$125M

Previous: $106M+18.1%
Stock-Based Comp

$89K

Previous: $104K-14.4%

Revenue & EPS history

Napco · Revenue · Quarterly

$31.1M

Q1 2022+34%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Napco · $16.1M total across 1 segment · Q4 2023

  • Recurring Services
    $16.1M

Forward guidance

NAPCO anticipates continued strong recurring revenue and profitability, focusing on providing seamless security solutions and expanding recurring revenue with existing and new products.

Tailwinds

  • Company's strategy is to provide seamless security solutions for customers.
  • Company aims to continue to grow recurring revenue with both existing and new products.
  • Company is expanding recurring revenue product offerings into all product lines.
  • Company is focused on generating strong revenue growth.
  • Company is focused on increased profitability for the balance of fiscal 2022 and beyond

Headwinds

  • Supply chain constraints and shortages of electronic and other parts slowing the pace of revenue realization.
  • Higher than usual backlog levels that may continue into 2022, particularly for electronic products.
  • Gross margin on hardware decreased to 22%, primarily as a result of increased freight and component parts costs relating to the current, world-wide supply chain problems.
  • Shift in product mix to more of the Company’s Starlink radios (which generate the recurring service revenues).
  • COVID-19 pandemic impact

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+33.0%

Q1 2024

Best reaction

-26.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-15.2%-12.6%-22.9%
Q2 2026+11.4%+18.3%+18.1%
Q1 2026-6.8%-4.6%-7.1%
Q3 2025+3.6%+10.9%+20.2%
Q2 2025-26.6%-29.9%-33.7%
Q1 2025-6.9%+0.2%+5.7%
Q4 2024-16.4%-16.4%-25.2%
Q3 2024+7.7%+4.5%+22.0%
Q2 2024+21.3%+25.7%+14.9%
Q1 2024+33.0%+35.6%+69.5%
Q4 2023+8.9%-38.4%-38.6%
Q3 2023+20.9%+22.8%+39.2%
Q2 2023+14.3%+1.6%+8.8%
Q1 2023+8.9%+13.0%+5.0%
Q4 2022+16.3%+13.9%+17.2%
Q3 2022-2.2%+4.0%+21.9%
Q2 2022-2.9%-3.9%-0.1%
Q1 2022-5.9%-3.4%+2.5%
Q4 2021+18.5%+8.7%+18.3%
Q3 2021-1.8%-2.9%+1.5%
Q2 2021+15.1%+20.6%+33.5%
Q1 2021+10.3%+16.3%+25.3%
Q4 2020-4.8%-3.3%+5.6%
Q3 2020+12.2%+19.1%+34.0%
Q2 2020-25.6%-23.3%-30.0%
Q1 2020-0.1%-1.6%+4.3%
Q4 2019-24.0%-25.3%-26.2%
Q3 2019+12.0%+10.6%+21.2%
Q2 2019+21.8%+29.7%+32.9%
Q1 2019+12.9%+15.0%+7.8%
Q4 2018+2.0%+2.0%-3.6%
Q3 2018+7.9%+7.3%+7.8%
Q2 2018-0.4%-0.5%+1.6%
Q1 2018-3.4%-5.1%-5.6%
Q4 2017+18.6%+9.0%+28.4%
Q3 2017-5.0%-10.0%-6.7%
Q2 2017-0.6%-2.7%+6.5%
Q1 2017+4.8%+6.4%+19.1%
Q4 2016-5.9%-7.3%-2.0%
Q3 2016-0.7%
Q2 2016-2.6%
Q1 2016-4.4%
Q4 2015-3.1%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015-6.1%
Q4 2014+5.1%
Q3 2014+7.2%
Q2 2014-5.9%
Q1 2014-1.3%
Q4 2013-1.8%
Q3 2013-1.8%
Q2 2013+2.9%
Q1 2013-3.7%
Q4 2012+7.6%
Q3 2011-7.7%
Q3 2012-7.7%
Q2 2011-10.7%
Q2 2012-10.7%
Q1 2012-1.8%
Q4 2011+1.8%
Q1 2011+1.8%
Q4 2010-2.2%
Q3 2010-0.9%

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