Reports Q1 revenue $39.5M, consensus $36.34M. CEO Richard Soloway commented, "Following a very strong sales performance in fiscal 2022, the momentum continued during 1Q23 with Q1 record sales of $39.5M, a 27% increase over last year’s Q1 and the eighth consecutive quarter of record year-over-year quarterly sales. Both equipment revenue and recurring service revenue, which increased 23% and 35%, respectively, contributed to the year-over-year overall sales growth…NAPCO executed exceptionally well in the first quarter, easily exceeding published street consensus estimates for Q1 on Revenue, Net Income, EPS and Adjusted EBITDA, despite ongoing challenges within our supply chains. We continue to remain focused on aggressively managing these logistical challenges, in order to ensure that we remain well positioned to meet the needs of our customers. We continue to manage these issues by re-engineering products, developing alternative, more readily available supply sources and delivery methods and continuing to work closely with our customers and suppliers to navigate through these extraordinary times…Our backlog remains near record levels and we remain confident in sustaining demand for our products against an increasingly uncertain economic environment…Our balance sheet continues to be very strong, with cash and cash equivalents, other investments and marketable securities of $44.4M and no debt at September 30, 2022…We remain confident in our ability to navigate through these difficult economic times and to continue to deliver strong growth in both equipment and recurring revenue. The demand for our products and services continues to be very strong…Our fundamental strategy continues to be to provide seamless security solutions for our customers and to continue to grow recurring revenue, now at a $58 million annual run rate, with both existing products as well as new ones, such as the unique to the industry Air Access products, which should generate a new stream of recurring revenue from the locking and access control segments of our business…The first quarter of FY23 was a strong performance for our Company and I remain confident that our best quarters are yet to come."
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