July 26, 2010 -- In a public letter to his shareholders today, NAPCO Security Technologies Chairman and CEO Richard Soloway said that the company is preparing to launch new products at the ISC East tradeshow (a.k.a., ISC Solutions) in New York this fall.
According to Soloway, the key to these new product launches is that they would create recurring revenue for NAPCO. Soloway said that one product coming from NAPCO will be a wireless touchscreen tablet for controlling the home or business alarm systems, door entrances and video security camera systems.
"Our existing products with recurring revenue opportunities continue to expand," Soloway wrote to his shareholders. "While these revenues represent less than 10 percent of overall business, we have been laying the proper groundwork in preparation for further growth for these types of products and services."
The company is said to have put in place new accounting software to support the move toward recurring revenue products for NAPCO and its dealers.
In the letter, Soloway also indicated that they are moving production of Marks' lock products from the current U.S. location to NAPCO's facility in the Dominican Republic. "Upon the completion of this integration of Marks, shareholders of NAPCO should expect cost savings of approximate $2 million per year," wrote Soloway.