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TWST: Would you give us a brief historical sketch of NAPCO and a picture
of the things you're doing at the present time?
Mr. Soloway: NAPCO is a designer and manufacturer of electronic security
products in three essential building blocks of the security industry:
intrusion and fire, access control, and electronic locking. The
intrusion and fire alarm division supplies a wide range of products and
systems to professional security installation companies. Approximately
8,000 security installation companies in the US and overseas use NAPCO
intrusion and fire products. These products are designed for the highest
level of protection in commercial, industrial, and governmental projects
of all sizes as well as a full line of the finest residential security
systems available in the security industry. Our locking division is
called Alarm Lock. Alarm Lock is a designer and manufacturer of
electronic locking devices for doors of all types, and are installed by
locksmiths. Approximately 6,000 locksmiths install our electronic
locking devices in many countries around the world. They're used in
institutions, schools, military bases, airports, commercial buildings,
and government facilities of all types. Our third division is a company
called Continental Instruments. Continental Instruments is a designer
and manufacturer of enterprise class access control systems for every
type of building. These systems are sold by a network of almost 1,000
security system integrators. An access control system is a system that
allows only people with the proper badge into buildings, rooms,
elevators, hallways and areas inside and outside of buildings such as
parking lots. The Continental system is designed so that it could be
networked up. So, for example, multinational companies, which have
offices around the world, can have the ability to be protected in all of
their buildings simultaneously. In other words, when a person is
enrolled on the Continental system in one building, this individual can
also be allowed into the other company buildings with their designated
security clearance level. If the person is no longer employed by the
company, he or she can immediately be taken out of the system, denying
access to company buildings. Time and attendance records for each
employee are also a feature of the Continental system. We also have a
custom manufacturing business that allows us to make specialized
security products for large installation companies such as ADT and
others who have special needs and can order in large volume. Most of
the NAPCO Group products are sold around the world, in more than 60
countries. We recently opened an office in Dubai, UAE, Middle East
which, as we know, is a very security conscious part of the world. Dubai
is our central distribution point to the 22 countries in the Gulf and
middle east regions. As for the financial history of NAPCO; it goes
back to an IPO in 1972 when we raised $750,000 on a 100,000 share
offering. That is the only equity financing the company has ever had.
Security is a growing 'top of mind' business and we are on a continuous
track of growth. We have not needed any other additional capital from
offerings for funding our growth since our IPO, due to generating cash
from operations and our good credit facility. We have been growing and
have been profitable every year since the IPO. We have split our stock
nine times and we now have 20 million shares outstanding and a market
cap of 200 million dollars.
Tickers included in this excerpt: NSSC
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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