Q4 2024 NAPCO Security Technologies Inc Earnings Call Transcript
Key Points
- Record sales of $50.3 million for Q4, marking the 15th consecutive quarter of record sales.
- Recurring revenue subscription service grew 27% in Q4, with an annual run rate of $84 million.
- Strong balance sheet with cash balances reaching $97.7 million, a 46% increase over the previous year.
- No debt, indicating strong financial health.
- Gross profit for recurring service revenue increased 29% to $18.4 million with a gross margin of 90%.
- Radio sales were down 10% compared to Q4 of last year due to the sunsetting of 3G technology and high inventory levels at distributors.
- Research and development costs increased 28% to $3 million for the quarter, impacting overall expenses.
- Selling, general, and administrative expenses increased 22% to $10.9 million, partly due to trade show expenses and increased stock-based compensation.
- Provision for income taxes for the 12 months increased by 60% to $6.6 million, affecting net income.
- Equipment sales growth was modest at 5% for the quarter, indicating potential challenges in this segment.
Good morning, ladies and gentlemen, and welcome to the NAPCO Security Technologies fiscal Q4 and fiscal 2024 earnings conference call. (Operator Instructions) This call is being recorded on Monday, August 26, 2024.
I would now like to turn the conference over to Francis Okoniewski, VP, Investor Relations. Please go ahead.
Thank you, Joan, and good morning, everyone. This is Francis Okoniewski, Vice President of Investor Relations for NAPCO Security Technologies. Thank you all for joining today's conference call to discuss financial results for our fiscal fourth quarter and fiscal year 2024.
By now, all of you should have had the opportunity to review our earnings press release discussing our quarterly results. If you have not, a copy of the release is available in the Investor Relations section of our website, www.napcosecurity.com.
On the call today are Dick Soloway, Chairman, CEO of NAPCO Security
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