Revised marketing strategy ups Napco earnings
AMITYVILLE, N.Y.--Napco Security System's top executive credited a revised marketing strategy for its fire and intrusion system as one of the reasons for an increase in revenues, net income and earnings-per-share for fiscal year 2005.
The company invested $5 million in research and development to create products for the residential, commercial, industrial and government markets, according to Richard Soloway, chairman and president.
Napco began to distribute its products exclusively through independent distributors beginning in 2004--an effort that contributed to increased sales, Soloway added.
Released in late September, Napco's results showed a 12 percent increase in earnings over fiscal year 2004, a 47 percent increase in operating income and a 69 percent jump in net income. The company repaid $6.4 million in debt, reducing its outstanding debt to $1.95 million.
In collaboration with ADT Security, Napco developed a second generation of its SAFEWATCH EZ product, a wireless security system. Soloway expects this product to contribute to future growth.
Napco manufactures intrusion, fire alarm and access control systems and electronic locking devices.