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NAPCO Security Technologies Inc. (NSSC-0.94%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $42,933,000 from $47,547,000 in the same quarter the previous year. Equipment revenues decreased by 25.1% while service revenues increased by 14.4%.
Gross profit for the quarter was $24,489,000, representing 57.0% of net sales, compared to 52.6% in the same quarter of the previous year. The increase in gross profit margin was attributed to higher service revenue margins.
Research and development expenses increased to $3,107,000 from $2,542,000, reflecting higher compensation and additional resources.
Selling, general, and administrative expenses increased to $10,211,000 from $8,665,000, primarily due to increased compensation, advertising, and insurance costs.
Net income for the quarter was $10,467,000, down from $12,610,000 in the previous year. The decrease in net income was primarily due to lower equipment sales.
Cash provided by operating activities was $25,524,000, while cash used in investing and financing activities was $17,718,000 and $22,564,000, respectively.
NAPCO had cash and cash equivalents of $86,019,000 as of December 31, 2024. The company maintains a revolving credit line of $20,000,000, none of which has been drawn.
The filing also details ongoing litigation, including a class action lawsuit and a derivative lawsuit, which the company intends to defend vigorously.
NAPCO continues to focus on developing high-tech security devices and communication services, with an emphasis on recurring service revenue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NAPCO Security Technologies Inc. quarterly 10-Q report dated February 3, 2025. To report an error, please email earnings@qz.com.