Company Description
NAPCO Security Technologies, Inc. (NASDAQ: NSSC) is a manufacturer and service provider focused on high‑tech electronic security devices and wireless communication services. According to the company’s disclosures, NAPCO designs and produces equipment and services for intrusion and commercial fire alarm systems, access control and locking applications, and is also described as a leading provider of school safety solutions. Its common stock trades on the Nasdaq Stock Market under the symbol NSSC.
The company states that it operates through four divisions: the NAPCO brand plus three wholly owned subsidiaries, Alarm Lock, Continental Instruments, and Marks USA. NAPCO is headquartered in Amityville, New York, and reports that its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential, and government applications. Across its communications, NAPCO emphasizes electronic security devices, wireless recurring communication services, and solutions that address a range of security and life‑safety needs.
Business focus and product areas
NAPCO describes itself as one of the world’s leading manufacturers and service providers of high‑tech electronic security devices. Its offerings include electronic security equipment and wireless communication devices that support intrusion and fire alarm systems, as well as access control and locking systems. The company highlights product lines and platforms such as:
- StarLink communications products, including cellular communicators for intrusion and commercial fire alarm systems.
- MVP Access, which NAPCO describes as a cloud‑based access control platform supporting security management and recurring monthly revenue models.
- MVP EZ, characterized as an app‑based platform aimed at locksmiths and smaller dealers for cloud‑based remote management services.
- Door‑locking products and architectural locking solutions, including offerings under the Marks USA brand.
In multiple press releases, NAPCO also references Gemini alarm systems, keypad and touchscreen interfaces, and various access control panels and credential readers. These products are presented as part of unified ecosystems that support intrusion detection, fire alarm signaling, access control, and locking in a range of end‑user environments.
Equipment and recurring service revenue
NAPCO’s public financial releases distinguish between equipment revenue and recurring service revenue (RSR). Equipment revenue is associated with sales of high‑tech electronic security equipment and related devices, including door‑locking products. Recurring service revenue is described as wireless recurring communication services for intrusion and fire alarm systems and other connected platforms. The company repeatedly highlights RSR as a significant and growing component of its business, noting that these services are tied to communication devices and cloud‑based platforms that generate ongoing monthly revenue.
In its commentary, NAPCO emphasizes that recurring service revenue is linked to offerings such as wireless fire and intrusion alarms, enterprise access control systems, and architectural locking products that connect through its communication services and cloud platforms. The company’s communications also reference a focus on expanding recurring service revenue solutions across its product families.
End markets and applications
According to NAPCO’s descriptions, its products are installed in a broad set of applications, including commercial, industrial, institutional, residential, and government settings. The company’s security devices and services are used for intrusion detection, commercial fire alarm signaling, access control, and locking. NAPCO also highlights school safety solutions as a specific focus area, positioning its technologies as part of safety and security measures for educational facilities.
NAPCO’s communications note that its products are installed by tens of thousands of professional security dealers, integrators, locksmiths, and other security professionals. The company also references use cases across education, healthcare, commercial, and government environments in connection with its MVP ecosystem and cloud platforms.
Corporate structure and brands
The company reports that it consists of four divisions: the core NAPCO business and three wholly owned subsidiaries, Alarm Lock, Continental Instruments, and Marks USA. In some communications, NAPCO also references brands such as Continental Access and StarLink Communications as part of its family of respected security brands. These brands cover areas such as locking hardware, access control, and communications products.
NAPCO describes itself as a vertically integrated security manufacturer, indicating that it manages multiple stages of product development and production within the company. It also notes that its products are used by a nationwide base of professional security dealers and integrators, and that its offerings are designed to support recurring monthly revenue models for these partners.
Technology platforms and ecosystems
Across several press releases, NAPCO highlights the development of unified security ecosystems and cloud‑connected platforms. For example, the company describes its MVP ecosystem as including access control panels, high‑performance electronic locks, and credential readers designed to work with the MVP Cloud Platform. This platform is characterized as supporting scalable performance and a broad range of security applications across sectors such as education, healthcare, commercial, and government.
The company also references cloud‑based MVP Access and MVP EZ solutions that enable remote management, door control, threat level adjustments, and monitoring of real‑time events. These offerings are presented as supporting recurring monthly revenue for both NAPCO and its dealer network.
Market positioning and industry role
In its own “About” statements, NAPCO describes itself as one of the world’s leading manufacturers and service providers of high‑tech electronic security devices and as a leading provider of school safety solutions. The company states that its products have earned a reputation for innovation, technical excellence, and reliability, and that this reputation positions it for growth in what it describes as a multi‑billion‑dollar and rapidly expanding electronic security market.
NAPCO frequently participates in major security trade shows, such as ISC West in Las Vegas and ISC East in New York City. At these events, the company showcases new products, cloud platforms, and communication devices, and highlights how these offerings are intended to support recurring communication revenue and dealer business models. The company’s participation in these trade shows underscores its focus on professional security channels and industry engagement.
Regulatory and public company context
NAPCO Security Technologies, Inc. is incorporated in Delaware and files periodic reports and current reports with the U.S. Securities and Exchange Commission. Its common stock, with a par value of $0.01 per share, is registered under Section 12(b) of the Securities Exchange Act of 1934 and listed on the Nasdaq Stock Market under the symbol NSSC. The company issues earnings releases, Form 8‑K current reports, and proxy statements that provide investors with information on its operations, financial condition, and corporate governance.
FAQs about NAPCO Security Technologies, Inc.
- What does NAPCO Security Technologies, Inc. do?
NAPCO Security Technologies, Inc. designs and manufactures high‑tech electronic security devices and provides wireless communication services for intrusion, commercial fire alarm, access control, and locking applications. The company also identifies itself as a leading provider of school safety solutions.
- Where is NAPCO Security Technologies headquartered?
NAPCO states that it is headquartered in Amityville, New York.
- On which exchange does NSSC trade?
NAPCO’s common stock trades on the Nasdaq Stock Market under the ticker symbol NSSC.
- What are NAPCO’s main business divisions?
The company reports four divisions: NAPCO plus three wholly owned subsidiaries—Alarm Lock, Continental Instruments, and Marks USA.
- What types of revenue does NAPCO report?
In its financial communications, NAPCO distinguishes between equipment revenue, which comes from sales of electronic security equipment and related products, and recurring service revenue, which comes from wireless recurring communication services for intrusion and fire alarm systems and other connected platforms.
- What markets use NAPCO’s products?
According to the company, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential, and government applications. NAPCO also highlights school safety as a specific area of focus.
- What is the MVP ecosystem mentioned by NAPCO?
NAPCO describes the MVP ecosystem as a unified set of access control panels, electronic locks, and credential readers that work with its MVP Cloud Platform. This ecosystem is designed to support security applications across sectors such as education, healthcare, commercial, and government, and to enable recurring monthly revenue models.
- How does NAPCO describe its role in the security industry?
The company characterizes itself as one of the world’s leading manufacturers and service providers of high‑tech electronic security devices and a leading provider of school safety solutions. It states that its products have earned a reputation for innovation, technical excellence, and reliability in the electronic security market.
- Does NAPCO focus on professional security channels?
Yes. NAPCO notes that its products are installed by tens of thousands of security professionals, including dealers, integrators, and locksmiths, and it regularly showcases its offerings at major security trade shows such as ISC West and ISC East.
- Is NAPCO an equipment manufacturer, a service provider, or both?
NAPCO describes itself as both a manufacturer and a service provider. It manufactures high‑tech electronic security devices and also provides wireless recurring communication services and cloud‑based platforms that generate recurring service revenue.
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Short Interest History
Short interest in Napco Security (NSSC) currently stands at 2.6 million shares, up 5.9% from the previous reporting period, representing 7.0% of the float. Over the past 12 months, short interest has increased by 12.2%. The 7.7 days to cover indicates moderate liquidity for short covering.
Days to Cover History
Days to cover for Napco Security (NSSC) currently stands at 7.7 days, up 37.5% from the previous period. This moderate days-to-cover ratio suggests reasonable liquidity for short covering, requiring about a week of average trading volume. The days to cover has increased 55.3% over the past year, indicating either rising short interest or declining trading volume. The ratio has shown significant volatility over the period, ranging from 4.9 to 12.0 days.