NAPCO Security Tech (NASDAQ: NSSC) reported Q2 EPS of $0.05, versus $0.05 reported last year. Revenue for the quarter came in at $20.7 million, versus $20.5 million reported last year.

Richard Soloway, Chairman and President said, "I am pleased that quarterly revenue once again exceeded $20 million, which is the sales level where gross profit expansion and overhead absorption begins to occur. We continue to build momentum for future growth, by focusing on vibrant markets, such as school security, IoT and wireless alarm signal communicators, with an emphasis on products that deliver substantial recurring monthly revenue (RMR). New product development initiatives are squarely aimed at increasing our portfolio of RMR building product entries, with four product launches scheduled over the next six months in the (i) dual-path fire, (ii) IoT communicator, (iii) wireless video, and (iv) intrusion alarm product segments.

Mr. Soloway added, " Demand for our stable of integrated, cross-divisional product solutions for the school market, in the form of intrusion/fire alarms and communicators, access control, electronic access control locks and architectural locking hardware, known as our Project LocDown™, continues to grow. Also, our School Access-control Vulnerability Index (SAVI) and audit system continues to educate our dealers, integrators and school officials in creating safe and secure schools. In one of our recent successes, NAPCO's Continental Access Control Division was chosen as the keyless access control system for all of the North East Independent School District of San Antonio, which just received a bond for facility upgrades and improving security preparedness."

Mr. Soloway continued "Subscription-based recurring monthly revenue continues to grow significantly, with a 68% increase versus Q2 a year-ago, fueled by the sales increases of our base StarLink® 3G/4G, Verizon CDMA and commercial fire and intrusion alarm communicators, as well as, iBridge® Connected Home products. Our StarLink Fire and commercial communicators, launched in 2016, continue to see rapid growth and adoption by substantial dealers and integrators across the country. Fiscal Q3 will witness the launch of our StarLink Dual-Path Fire Communicator, which will enable us to expand our fire communicator business into major cities in the U.S., that require two methods of reporting fire alarms."

"Exhibited at the International Security Conference & Exhibition East trade show, in November, StarLink Connect, met with widespread acceptance among security dealers. Launching this March, StarLink Connect is a Verizon CDMA cellular communicator that can be easily installed to add a host of IoT, Connected Home services to tens of millions of legacy and new alarm systems in the marketplace. This innovative product provides alarm dealers with the ability to retrofit existing security installations to communicate alarm signals, as well as giving their customers the power to remotely operate their security systems, lighting, locks, thermostats, and video cameras, from any smart device. StarLink Connect will continue our rollout of new products which drive our Company\'s recurring monthly revenue and vastly increases our profitability."

Mr. Soloway concluded "Looking to the second half of our fiscal 2017 and beyond, with its array of new product launches and considerable momentum, NAPCO is well-positioned for increased sales and earnings for years to come."

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