Napco credits distributors for growth, initiates stock split
AMITYVILLE, N.Y.--Napco Security Systems is on a roll, reporting this week record sales and profits in its third quarter results followed by a 3-for-2 stock split.
The manufacturer of intrusion, fire alarm, access control and locking systems saw net sales for the three months ended March 31, 2006 increase 9 percent to $17.1 million. Net income jumped 46 percent to $1.5 million, compared with $1 million for the same period last year.
Richard Soloway, chairman and president of Napco credited the growth to its distribution network and the company's expanding line of products. In 2004, the product manufacturer decided to distribute its products through a network of independent distributors and ended its long-standing distribution relationship with ADI.
In terms of products, the company released a new video product, the VIP-Gateway, which allows homeowners to check on their home through a cell phone or computer. It also received positive feedback from customers on its second generation wireless/ hardwire code-free alarm systems called Safewatch E-Z and Freedom.
The 3-for-2 stock split will be paid to shareholders of record as of May 24, 2006. Shareholders will receive one additional share of common stock for every two shares held.
The stock split will increase the total number of shares of common stock outstanding from 13.3 million to approximately 19.95 million.
Soloway expects the split to make Napco more attractive to investors. It marks the ninth stock split for the company since it went public in 1990.