Napco Security reports Q3 EPS 36c, consensus 33c

Reports Q3 revenue $49.3M, consensus $48.44M. CEO Richard Soloway commented, “3Q24 was the strongest quarter in our company’s history. Revenue was $49.3M, which was the highest quarterly sales we ever achieved and was the fourteenth consecutive quarter of record sales for a quarterly reporting period. Our net income of $13.2M and Adjusted EBITDA of $15.6M were also quarterly record-breakers…Our balance sheet continues to get stronger, with cash and cash equivalents, other investments and marketable securities increasing 31% to $87.5M as compared to $66.7M at June 30, 2023, We have no debt and the net cash provided by operating activities for the nine months ended March 31, 2024 was also strong, amounting to $31.0M…We are nine months through FY24 and while we have already generated net income of $36.3M, Adjusted EBITDA of $43.5M and our Adjusted EBITDA margin is now 31%, there is more work to be done. While we continue to be encouraged with the gross margin for hardware sales of 29%, we believe this could improve further in Q4 and beyond . Our strong net income and Adjusted EBITDA margins indicate the financial strength of our business. As such, we are pleased to continue our dividend program and we will be paying another dividend of 10c per share on June 24, 2024”.