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Napco Security Systems Inc. Reports Operating Results (10-K)

October 14, 2010 | About:
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10qk

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Napco Security Systems Inc. (NSSC) filed Annual Report for the period ended 2010-06-30.

Napco Security Systems Inc. has a market cap of $34.4 million; its shares were traded at around $1.8 with and P/S ratio of 0.5.

Highlight of Business Operations:

In March 2009, the Company began a Restructuring Plan consisting of a series of

actions to consolidate its Sales, Production and Warehousing operations of Marks

and those in Europe and the Middle East into the Corporate Headquarters in

Amityville, NY and its production facility in the Dominican Republic. The

majority of these actions have been completed by June 30, 2010, while certain

remaining Production-related actions are expected to be completed by December

31, 2010. Accordingly, the Company recognized restructuring costs of $1,274,000

in the fiscal year ended June 30, 2009. Of this amount, $210,000 relates to

Workforce Reductions communicated in March 2009 and $1,064,000 to Business Exits

and related costs associated with inventory and lease impairments related to the

closure of the Marks, European and Middle East facilities. As of June 30, 2010,

$1,138,000 of the $1,274,000 in restructuring costs has been paid and $136,000

remains in accrued expenses.



High $ 2.08 $ 2.86 $ 3.02 $ 2.58

Low $ 1.11 $ 1.43 $ 1.68 $ 1.70



High $ 4.54 $ 2.90 $ 2.82 $ 1.72

Low $ 2.45 $ 1.02 $ 0.76 $ 1.01



2010(1) 2009(1) 2008 2007(2) 2006(2)(3)

- - - - -

Statement of earnings data:

-



Net Sales $67,757 $69,565 $68,367 $66,202 $69,548

Gross Profit 14,522 15,096 20,412 23,998 26,956

Impairment of Goodwill 923 9,686 - - -

(Loss) Income from Operations (5,211) (14,917) 3,137 6,501 9,523

Net (Loss) Income (6,500) (13,382) 3,718 4,217 6,119

Cash Flow Data:

Net cash flows provided by (used in) operating activities 5,285 6,792 3,784 (3,674) (168)

Net cash flows used in investing activities (300) (25,229) (1,045) (1,294) (1,679)

Net cash flows (used in) provided by financing activities (3,572) 19,781 (1,722) 3,978 3,407



Per Share Data:

-

Net (loss) earnings per common share:

Basic $(.34) $(.70) $.19 $.21 $.31

Diluted $(.34) $(.70) $.19 $.20 $.30

Weighted average common shares outstanding:

Basic 19,096,000 19,096,000 19,263,000 19,961,000 19,785,000

Diluted 19,096,000 19,096,000 19,802,000 20,599,000 20,605,000

Cash Dividends declared per common share (4) $.00 $.00 $.00 $.00 $.00



In March 2009, the Company began a Restructuring Plan consisting of a series of

actions to consolidate its Sales, Production and Warehousing operations of Marks

and those in Europe and the Middle East into the Corporate Headquarters in

Amityville, NY and its production facility in the Dominican Republic. We expect

these restructuring initiatives to cost between $1,200,000 and $1,500,000. The

majority of these initiatives have been completed by June 30, 2010, while

certain remaining Production-related actions are expected to be completed by

December 31, 2010. Accordingly, the Company recognized restructuring costs of

$1,274,000 in the fiscal year ended June 30, 2009. Of this amount, $210,000

relates to Workforce Reductions communicated in March 2009 and $1,064,000 to

Business Exits and related costs associated with inventory and lease impairments

related to the closure of the Marks, European and Middle East facilities. As of

June 30, 2010, $1,138,000 of the $1,274,000 in restructuring costs has been

incurred and $136,000 remains in accrued expenses.



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