Advanced alarm signal reporting, even when telephone service is interrupted, drive adoption; Millions of systems in need of upgrade, creating recurring monthly service fee to NAPCO
AMITYVILLE, N.Y., Nov. 30, 2012 /PRNewswire/ -- NAPCO Security Technologies, Inc.,(NASDAQ: NSSC), one of the world's leading suppliers of high performance electronic security equipment for over 30 years, today announced a 20% sequential increase in installations of its advanced Starlink2 radio during the most recently reported fiscal first quarter. Starlink2 allows for alarm signal reporting even when telephone service is interrupted and provides high-margin monthly recurring revenue to NAPCO.
Richard Soloway, Chairman and CEO of NAPCO Security Technologies commented, "We continue to see increased demand for this advanced system, in large part due to the Starlink2's ability to work without a dial-up phone line. Legacy alarm systems that depend on dial up phone lines unfortunately have exposure to storms like Sandy, as well as from tampering and VoIP line-caused interference. Starlink2 addresses all of these issues as well as adding an impressive array of new features for the security professional."
Starlink2 is NAPCO's innovative, two-way GSM alarm system communicator that replaces hardwire dial up phone lines by transmitting GPRS burglar/fire/medical emergency signals to alarm central stations. Starlink2 is NAPCO's second potentially significant recurring revenue product line. The hardware is priced at $99.95 to installers and provides a recurring monthly service fee to NAPCO of $5 to $8.
NAPCO believes the potential addressable market includes more than one hundred thousand new alarm systems produced each year, plus in excess of five million current alarm systems currently in the field that can be upgraded to the new Starlink2 system. In addition, tens of millions of competing alarm systems could also be upgraded to Starlink2.
NAPCO expects many factors to drive demand to upgrade. Approximately one-third of all households do not have dial-up phone lines and would need Starlink2 to communicate to the central station. Homes with VoIP lines which block alarm signals also need Starlink2. In addition, Starlink2 provides added security to vulnerable homes that have dial-up phone lines, maintaining communications even if burglars cut outside cables in an effort to bypass existing alarm systems.
Starlink2 also offers dealers easy installation which is fully two-way uploadable and downloadable, so security dealers can program or reprogram the installed NAPCO alarm systems without visiting the premise. The Starlink2 also provides the central station with information on the location of the burglar on a premise as well as the location of a fire. Additionally, alarm central stations do not have to install any special equipment to receive the Starlink2 signals.
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.