NAPCO Security Technologies, Inc., a provider of security products, such as electronic locking devices, alarm systems, and building access control systems, based in Amityville, New York, and set up in 1969, in a statement on Thursday, December 27, 2018, announced a new share repurchase program for the Company, approved by the Board of Directors.
As per the new share repurchase program, up to 500,000 shares of the approximately 18.6 million shares outstanding, will be repurchased from time to time in the open market or in privately negotiated transactions in accordance to market conditions and the market price of the common stock. Under the earlier repurchase program, which was authorized by the company board of directors in 2014, repurchase of up to 1,000,000 shares the Company has the ability to repurchase an approximate of 52,000 shares.
According to Richard Soloway, President & CEO of NAPCO, the company’s future looks bright, its sales and profits continue to grow in fiscal 2018, marking it as another record year. The company recently launched new products such as the Starlink Connect, and Dual Path communicators, which performed very well for it. The performance is estimated to the continued growth of NAPCO’s recurring revenue, which grew 46% in the first fiscal quarter 2019 and has an annual run rate of $15.6 million as on September 2018. The Company also witnessed an increase in its hardware products offering during the first fiscal quarter of 2019. Also, with School security remaining a vibrant area, the Company continues to win new business in this vertical. The recent legislation on school security, which was passed by 26 different states in the US, ensures a total sum of approximately $1 billion dollars for funding school security. This legislation proves to be beneficial for NAPCO’s business.