WSJ Reports Crime and Building Permit Increases as NAPCO Security Products Gain Traction
AMITYVILLE, N.Y., June 4, 2012 /PRNewswire/ — NAPCO Security Technologies, Inc.’s, (NASDAQ: NSSC), one of the world’s leading suppliers of high performance electronic security equipment for over 30 years, announced that new security products, including GEM C combo fire and burglar alarm, Networx wireless locking system, and Starlink2 two-way GSM alarm system communicator, are receiving excellent dealer feedback about their market acceptance, as increased crime rates and building starts (macro drivers for NAPCO products) are being reported by national media outlets, including the Wall Street Journal.
“Murders nearly doubled in San Jose last year and rose in Oakland, San Diego and Sacramento, according to a survey of police departments by The Wall Street Journal and federal statistics. All of those cities have fewer police officers now than in 2009 and the same is true in Miami, Tucson, and Colorado Springs, cities outside California where murders have risen for two consecutive years. Police in many places are making hard choices about how to allocate shrinking resource.” Cities See Murder Slide End Police Forces Shrunken by Budget Cuts Face Rise in Killings; Weighing Priorities in Stockton, Calif., by Scott Thurm, Justin Scheck and Bobby White, Wall Street Journal http://online.wsj.com/article/SB10001424052702303812904577297801570813854.html
“Manhattan experienced a 169% spike in new building permits issued so far this year, according to the buildings department, which issued 35 permits for construction including hotels, apartment buildings, an ‘affordable housing’ development and an art gallery in the first four months of 2012. Buildings commissioner, Robert LiMandri, is bullish that big building is coming back to New York City, according to the interview.” Permits Climb As Developers Up Their Bets, Laura Kusisto, Wall Street Journal http://online.wsj.com/article/SB10001424052702304752804577384453012841864.html
“Developers are working on or completing nearly $1 billion in projects throughout downtown Richmond, VA.” Louis Llovio, Richmond Times Dispatch
“There are sparks of activity in Boynton Beach, FL, that the city hasn’t seen in years. An uptick in building permits are taking shape in new construction projects that are filling up store fronts. More than 2,500 building permits have been issued since October, which adds up to more revenue than the city has seen since 2008.” Marissa Bragg
Richard Soloway, CEO of NAPCO Security Technologies, commented, “To put these statistics into context as to what it means for NAPCO, regarding crime, the more reports in the media, and family and friends that talk about it, (for example home invasions, murders, and the like) the more alarms and upgrades to current alarms is wanted by the consumers. In fact only 22% of US households have an alarm. So this is a positive trend for the Company. With commercial building there is a lead time with the security dealers installing fire, intrusion, locking and access systems. After getting the permit to build, the construction starts sequentially: first dig the hole, then pour concrete, then install the steel and finally build up the building floor by floor. Since the permits are issued throughout a year, each building has a different start date. Lots of permits results in many buildings going up. All of this activity for product buying is good news and could help NAPCO grow nicely.”
Mr. Soloway continued, “Although our products are not impulse buys and do require an education period to dealers, we are encouraged by the approval our products are receiving along with security and real estate developments, and we expect this to be very favorable for our business. We are doing a good job of managing profitability. If we can drive added sales with our new products, unleashing the leverage of our Dominican factory’s relatively fixed cost structure, it will be very meaningful for our bottom line. Some of these products also offer recurring monthly revenue, which adds perpetual profit on top of those additional sales.”
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc. is one of the world’s leading manufacturers of technologically advanced electronic security equipment including intrusion and fire alarm systems, access control and door locking systems. The Company consists of NAPCO plus three wholly-owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. The products are installed by security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for technical excellence, reliability and innovation, poising the Company for growth in the rapidly expanding electronic security market, a multi-billion dollar market.
For additional information on NAPCO, please visit the Company’s web site at www.napcosecurity.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve numerous risks and uncertainties. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company’s filings with the Securities and Exchange Commission.
James Carbonara, Regional Vice President
Wolfe Axelrod Weinberger Assoc. LLC
(212) 370-4500; (212) 370-4505 fax
SOURCE NAPCO Security Technologies, Inc.