Exhibit 99.1
CONTACT: FOR IMMEDIATE RELEASE
Richard Soloway, CEO Stephen D. Axelrod, CFA
Kevin S. Buchel, Senior VP Andria Arena (Media)
NAPCO Security Systems, Inc. Wolfe Axelrod Weinberger Assoc. LLC
(631) 842-9400 ext. 120 (212) 370-4500; (212) 370-4505 fax
steve@wolfeaxelrod.com
NAPCO SECURITY SYSTEMS, INC. ANNOUNCES ITS AUDITED FISCAL 2003 RESULTS
AMYTYVILLE, NEW YORK--FEBRUARY 9, 2004--NAPCO SECURITY SYSTEMS, INC. (NASDAQ:
NSSCE) one of the world's leading suppliers of high performance electronic
security equipment for over 30 years, announced today its audited fiscal 2003
results. The audited results are shown in a table below.
Richard Soloway, Chairman and CEO of NAPCO, stated, "With the completion of the
2003 audit and the planned filings of Form 10Q for both the first quarter ended
September 30, 2003 and the second quarter ended December 31, 2003 within a
week, we can now focus on maximizing the opportunities for growth in the
burgeoning marketplace for quality security products, systems and solutions."
"We continue to expect that results will continue to improve over the course of
the fiscal year. This positive outlook is supported by the overwhelming
acceptance of our new distribution arrangements, a broad array of new,
innovative security products, systems and solutions and an expanding market.
NAPCO is once again moving aggressively forward with a strong financial
structure and an organization dedicated to maintaining its leadership position
in all areas of the security industry," Mr. Soloway concluded.
NAPCO SECURITY SYSTEMS, INC. is one of the world's leading manufacturers of
technologically advanced electronic security equipment including burglary and
fire alarm systems, access control products and electronic locking devices. The
Company's products, including those of Alarm Lock and Continental Instruments,
feature some of the most popular and best-selling control panels, sensors,
locking devices and access control systems. They are used in residential,
commercial, institutional and industrial applications. NAPCO security products
have earned a reputation for technical excellence, reliability and innovation,
poising the Company for revenue growth in the rapidly expanding electronic
security market; a market whose current size exceeds $25 billion.
For additional information on NAPCO, please visit the Company's web site at
www.napcosecurity.com
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.
-TABLE TO FOLLOW-
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED JUNE 30, 2003 AND 2002
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(AUDITED)
<Table>
<Caption>
YEARS ENDED
JUNE 30,
-------------------------
2002
2003 (restated)
---------- ----------
Net sales $ 57,340 $ 55,836
Cost of sales 41,939 41,119
---------- ----------
Gross profit 15,401 14,717
Selling, general and administrative expenses 13,176 11,900
---------- ----------
Operating income 2,225 2,817
---------- ----------
Other income (expense):
Interest expense, net (727) (1,409)
Other, net 127 (49)
---------- ----------
(600) (1,458)
---------- ----------
Income before income taxes 1,625 1,359
Provision (benefit) for income taxes 615 (216)
---------- ----------
Net income $ 1,010 $ 1,575
========== ==========
Earnings per share:
Basic $ 0.30 $ 0.47
========== ==========
Diluted $ 0.28 $ 0.45
========== ==========
Weighted average number of shares outstanding:
Basic 3,332,000 3,342,000
========== ==========
Diluted 3,584,000 3,492,000
========== ==========
</Table>
SELECTED BALANCE SHEET DATA
AS OF JUNE 30, 2003 AND 2002
(AUDITED)
(IN THOUSANDS)
<Table>
<Caption>
2002
2003 (restated)
---- ----------
Total current assets $37,919 $40,873
Total current liabilities 9,076 9,061
Long-term debt 14,100 16,588
Total stockholders' equity 33,357 34,528
</Table>
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