Net income for the quarter increased 20 per cent to $US872,000 or $US0.10 per diluted share compared to net income of $US728,000, or $0.08 per diluted share, reported for the same year ago period. The increase in sales for the second quarter was due primarily to increased sales of the Company’s Alarm Lock door locking and NAPCO burglar and fire alarm products. Net sales for the six months ended December 31, 2004 increased 20 per cent to $US29,459,000 from $US24,464,000 reported for the six months ended December 31, 2003. Net income for the first half of fiscal 2004 increased 211% to $US1,385,000, or $0.15 per diluted share, compared to net income of $US446,000, or $0.05 per diluted share, for the same period a year earlier. Richard Soloway, Chairman and President, stated, “As evidenced by our strong sales in the first quarter of fiscal 2005, and subsequently extended through the second fiscal quarter, our business strategy of reallocating our burglar and fire alarm sales across our extensive national network of independent distributors has been well received and the revitalization of that segment of our business has taken hold.” “Our independent distributor network has done an outstanding job of reaching out to an expanding list of security dealers who focus on residential, commercial, industrial and governmental security installations, resulting in increased acceptance and sales of NAPCO alarm products,” noted Mr. Soloway. “In addition,” Mr. Soloway added, “NAPCO has shown major improvements in our financial metrics. In the past six months we have reduced our outstanding bank debt by approximately $4 million to $4.4 million and since December 31, 2003 by $9.2 million. Net cash provided by operating activities during this period was $5.1 million compared to $2.6 million a year ago.” NAPCO has recently introduced its newest, expanded catalog (available on request) demonstrating once again NAPCO’s commitment to its customer’s need for state-of-the-art breakthrough security products and systems; a commitment that is met by devoting over $4 million annually to R&D.
