Richard Soloway, Chairman and President, stated, "Over the years, the first quarter has historically been our softest. Unlike the first quarter in other years, last year we reported a meaningful profit due to our business decision of realigning our intrusion and fire distribution network, and our corporate focus on higher margined commercial and industrial security products. The current first quarter reinforces the profit breakthrough with a comfortable increase and we anticipate this trend will continue. We also are convinced that NAPCO's growing list of new products, some of which are noted above, should generate significant future returns for us for many years to come."
"Contract manufacturing showed a meaningful contribution in the first quarter with larger alarm companies such as ADT and others and we view this as a positive indicator that this activity will become a significant contributor to both sales and earnings."
"We are very confident," Mr. Soloway concluded, "that we have all the necessary pieces in place to satisfy our customers' most demanding security needs. We have just completed our seventh consecutive quarter of year-over-year improved sales and earnings and have once again generated profits in our historically softest quarter. NAPCO's businesses are strong and growing and our financial strength assures us that we will have the resources to take advantage of those particular opportunities that will enhance our growth prospects and increase shareholder values."
NAPCO's balance sheet is strong with a current ratio of 4.3 to 1, and EBITDA* (Earnings before interest, taxes, depreciation and amortization) increased 36% to approximately $1.6 million as compared to $1.2 million in the year ago period.
NAPCO Security Systems, Inc. is one of the world's leading manufacturers of technologically advanced electronic security equipment including intrusion and fire alarm systems, access control systems and electronic locking devices. The Company's products, including those of Alarm Lock and Continental Instruments, feature some of the most popular and best-selling security control panels and sensors, locking devices and access control products. They are used in residential, commercial, institutional, industrial and governmental applications. NAPCO security products have earned a reputation for technical excellence, reliability and innovation, poising the Company for revenue growth in the rapidly expanding electronic security market, a market whose current size exceeds $30 billion.
For additional information on NAPCO, please visit the Company's web site at www.napcosecurity.com.